How to “lock in” your premium

If you can afford it, consider paying a full 12 months of premiums before the rates increase takes effect which normally occurs in April each year and you will lock in your premiums at the current rate for the next 12 months. This means you essentially delay having to pay the increased premiums for up to 12 months.

An example:

  • The rate rise occurs on 1 April 2014.
  • You pay a year’s (12 months) premium in advance in March 2014 (at the current rate).
  • To “lock in” your annual premium at the current rate:
    • Your policy must start before 1 April 2014 and
    • Your annual payment must be processed by the bank before 1 April. Please note, banks can
      take up to 6 days to process your payment so don't leave it too late!
  • Your premium is protected (at the current rate) until March 2015.

You should note that ‘locking in your premium’ does not mean that funds cannot make changes in specific policy details and coverage; including changes to rebates or annual limits, or in the services covered by the policy/health fund.