There’s also a government rebate you can claim to reduce your premiums. Provided you hold cover (either hospital or extras, in this case) and your annual taxable income is less than $144,001 as a single or $288,001 as a couple/family, you can claim this rebate through your tax return or enjoy it as discounted premiums.
From the age of 41, your discount rate will begin to decline by 2% every year until it reaches zero and is no longer applicable.
For example: Say you took out a hospital policy at the age of 27 and received a 6% health insurance discount. This discount will drop to 4% when you turn 41 years old, a 2% discount at 42 and will no longer apply once you turn 43.
If your insurer doesn’t offer age-based discount products, it could be a good idea to compare and find out which other funds will. Along with cover that suits your healthcare needs, a discount may help ensure you’re on the most cost-effective policy, now and in the future.
If you’re an existing member of a health fund that offers the age-based discount on your policy, you may have automatically received the discount based on your age from 1 April 2019, or your age when you first took out health insurance (whichever is latest). However, please check with your health fund.
Some health funds may offer a retained age-based discount, which means your original discount will apply if you switch to an eligible policy. As such, be sure to confirm with the health fund whether you’ll receive a discount before you switch.
Any gap in cover means you may lose your discount. For example, if you move from a policy with the age-based discount and but don’t move to another for a few years (still before you turn 30), you’ll receive the discount based on your current age, not the one you had when you first had cover.
If you and your partner have a couples or family policy that offers a discount, your total discount will be calculated as an average of both your applicable discounts.
For example: If you have a 2% discount and your partner has a 6% discount, it will balance out to a 4% discount off your couples or family policy premiums.