Paying Health insurance 14months in advance?

[PLANT]

Hi all,

So how does this relate to AFF?
Well pay by credit card and then get FF points to use on flights.

Anyway is it worth paying 14months in advance(new max after the last 2 years in advance payment) prior to April 1st?

Will want to pay next annual by March 31st next year!

 

[Hvr]

Depends, what rate of return could you get for your money elsewhere and would it exceed the benefit of paying the bill that far in advance? The obvious saving would be if the cost of health insurance rises.

 

[PLANT]

Anyone else?

 

[amaroo]

I paid 18 months in advance to secure the 30% rebate for as long as I could.

For 6.2% I couldn't be bothered.....

 

[burmans]

Anyone else?

I think its worth paying a short period in advance, i.e. if you pay 6 months in advance the average you are paying in advance is 3 months, so annualise the return and you get ~24% return after tax. To me that's worth it. Not sure I'd find it worth it past 1 year in advance but some may regard a risk free 6% annual return as just fine, way better than in a Term Deposit will give you!

 

[N860CR]

Dumb question... But if you pay in advance does that lock the premium price in or will they still pass on increases?

 

[burmans]

Dumb question... But if you pay in advance does that lock the premium price in or will they still pass on increases?

Yes, this locks in the price which is why there is some advantage, you get the old price for the prepaid period.

 

[amaroo]

If you pre-pay and then change the policy all bets are off. I recall someone here on AFF did exactly that and lost the 30% rebate advantage.

 

[burmans]

If you pre-pay and then change the policy all bets are off. I recall someone here on AFF did exactly that and lost the 30% rebate advantage.

Well yes, because if you change polcy you haven't actually prepaid against the new policy. Somewhat of a dumb thing to do IMO but I guess not everyone may not have been aware of this.

 

[aaronm]

Really only works for the first year. But given that PHI increases are about 7-8% above inflation it can be worth it, and provides a nice points boost as well.