Ways to save

If you decide to buy or keep health insurance, how do you make it affordable?

Concentrate on the big risks

Don't insure for day-to-day medical expenses. If you want health insurance, protect against the big risks with Hospital and Surgical Only cover. Comprehensive policies, which cover your everyday costs, are unlikely to be worth the cost. However, if the comprehensive policies are available through your employer at discounted premiums then they may be worth considering.

Shop around

Choose a policy with high claim-limits and as broad a cover as possible. Getting quotes from several insurers may uncover a difference of hundreds – even thousands – of dollars. Always carefully compare the cover you are being promised.

Choose a higher excess

An excess is the part of each claim which you pay. Health policies can often be bought with a nil excess, but many companies offer reduced premiums if you opt for a higher excess.

Take the highest excess you can comfortably afford to pay. The bigger the excess, the lower your premium.

Make sure you have the money for the excess available at short notice, in case you need it.

Look for discounts

Group premium rates available through some employers and unions can save you hundreds of dollars. If you join as a group member, you may find your pre-existing conditions are covered as well (but always check).

Package discounts (where you get a discount because you use the same insurer for other types of insurance) aren't widely available, but look into it if you have other business with a health insurer.

Other discounts. Some insurers offer a discount of up to 6.5 percent for paying annually rather than monthly and a 2.5 percent discount for direct-debit payments. There may also be discounts for non-smokers with some insurers (up to 20 percent), for people with a healthy lifestyle (10 percent), and for 2 or more people on one policy, or for not making claims. Buying life and health insurance from the same company may also give you savings on premiums.