Understanding the Age-Based Discount on Health Insurance
Understanding the Age-Based Discount on Health Insurance
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What is the age-based discount, and how long will it apply?
So here’s the deal: you score a 2% discount for every year you’re under 30, capping at a solid 10% if you’re between 18 and 25. But if you’re still sitting pretty on your family or single parent’s insurance plan and you’re in the 18-29 age bracket, sorry, you’re not getting in on this. It’s strictly for those holding their own hospital policy.
Whether you’re a seasoned policyholder or just jumping on the insurance train, if your provider of choice offers these age-based discounts, you’re in luck! They’re throwing them out there for both the OGs and the newcomers.
Your age when you first purchase Hospital Cover with age-based discounts | Discount you could score |
18–25 | 10% |
26 | 8% |
27 | 6% |
28 | 4% |
29 | 2% |
30 | 0% |
Source: Privatehealth.gov.au – Age-based discount
How much could I save on hospital cover?
Alright, picture this – you’re 18, just adulting your way into the world. You decide to grab this slick insurance policy deal that starts showering you with discounts on your private health insurance premiums.
So, let’s break it down. You snag a 10% discount on your premiums every year until you hit 41. That’s more than a decade of savings! Meanwhile, your buddy, who’s still contemplating adulthood and hasn’t hopped on this policy bandwagon, is missing out.
Let’s crunch some numbers
Let’s say at 25 you buy a policy worth $1,500 per year. You snag a 10% discount on your premiums every year until you hit 41, reducing your premiums to $1,350 per year. You’re saving a cool $150 per year, and over 15 years, that’s a whopping $2250 in your piggy bank. Your friend, who’s still on the fence and has skipped the policy train, is giving you the side-eye like, ‘Why didn’t I jump on that?’
How do these discounts work for couples and families?
Suppose you’re rolling with your plus one or the whole fam on your insurance journey. If you and your partner are eligible for individual discounts, they don’t just add them up and call it a day. Nope, it’s an average game. Let’s say you’re rocking a solid 10% discount, and your partner’s cruising with a respectable 6% discount. They crunch the numbers, and voila – your power couple discount is a smooth 8%.1Private Health – Age Based Discount
Are insurers required to offer age-based discounts?
No one’s cracking the whip on insurers, forcing them to hand out those age-based discounts. It’s not a must-do, but guess what? A bunch of them actually do it anyway.
Loads of insurers are on board with the idea. So, while it’s not carved in stone, you should be able to find an insurer who’s all about those age-based discounts.
Helpful Tip:
A discount isn’t the only reason you might want to consider health insurance while you’re young, fit and healthy. Lots of funds offer some impressive perks, like discounts on gym memberships and rewards programs where you can snag some pretty great gifts and gadgets.
Do I still get a discount if I transfer insurers?
If you’re thinking of jumping ship to a new insurer or switching up your policy game, it’s like this: the discount you’re rocking might still come along for the ride, but you’ll have to play detective and ask your future insurer.
Before you make any moves, hit them up and ask straight up if your discount will stick with the new plan. Insurers have the power to decide if they’ll keep honouring that age-based discount when you make the switch. It’s their call – some might be cool and let it ride, while others might be a bit more picky. So be in the know before you make the move, and make sure your discount doesn’t get left behind in the insurance shuffle.
Where can I find and compare hospital cover?
At iSelect, we’ve made the whole health insurance game as easy as a Sunday morning. No need for a headache-inducing search – it’s just a few clicks to find a health insurance policy that suits your needs and budget. Compare Health Insurance policies like a pro so you can see what’s what.
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- 1.Private Health – Age Based Discount