Are health insurance promotions and deals worth it?

By Trudie McConnochie Published 2 hours ago

Health insurers are always keen to attract new members, especially when the annual 1 April price increases are announced. You might have seen ads promoting waiting periods being waived, a certain amount of membership weeks for free, or even gift products like retailer gift cards. But are these health insurance promotions and deals worth it, and what’s the catch?

Are health insurance promotions and deals worth it? A woman looks at her phone and smiles. — Image credit: Shutterstock

What deals and promotions can health insurers offer?

Health insurance in Australia is regulated by the government, which means there are limits to what an insurer can legally offer new or existing members.

Health insurers can only offer incentives up to the value of 12% of one year’s premium, plus an additional 12% for the first year of membership. Usually this comes in the form of:

A certain number of free weeks, e.g. 8 weeks free membership

Waived waiting periods (on Extras Cover)

Free gifts, e.g. gift cards

Bonus points for rewards schemes, e.g. airline points.

What are insurer promotions?

Are health insurance deals and promotions worth it?

It depends on the deal and your health insurance requirements. The first step is to check the fine print. Often health insurance promotions only apply to Combined Hospital and Extras policies, not standalone Hospital or Extras Cover. If you don’t use Extras Cover, it might work out cheaper to just get a Hospital Cover policy, regardless of the promotion.

Are you getting value from Extras Cover?

Health insurance promotions are only redeemable when you’ve been with the policy for a certain amount of time. For example, with an ’8 weeks free’ deal, you might have to be a member for 3 months to get the first 4 weeks, then the remaining 4 weeks might be credited after a year (you can still switch policies earlier, but you’ll miss out on the offer). So you’ll need to add up the cost of the premium over that period of time versus how much you’ll save with the promotion – is it really a good deal, or could you save more money by going with a cheaper policy?

Many health insurance deals are only available if you buy the policy directly from the insurer (again, check the fine print). But unlike other health insurance comparison websites, with healthslips.com.au you can still take advantage of a promotion when you find a policy through our calculator because you will be buying direct from your insurer of choice.

Search for the best health insurance policy on the healthslips.com.au calculator

Beth, considering deal for 10 weeks free

Beth finds a deal for a Combined Hospital and Extras Cover policy (Bronze Plus cover, $750 excess, 6 Extras treatments covered) with 10 weeks free. She looks at the fine print and finds she needs to keep the policy for 13 months to get the free weeks, which would mean a total cost of $1,610.47. She uses the healthslips.com.au calculator and finds a policy at the same level of cover for a slightly lower price, and discovers there is also a deal for 10 weeks free for that policy, making it the more affordable option.

Can existing members take advantage of promotions and deals?

Health insurers aren’t obligated to offer the same promotions or deals to new and existing members. With that said, insurers are always keen to retain members so if you see an appealing promotion to entice new customers, it’s worth phoning your insurer and asking what they can offer to keep you as a member.

How do I find the best health insurance deals?

To find the best health insurance deals, cast the net wide with the healthslips.com.au calculator, which searches every policy from every insurer in Australia with no commercial bias. It’s fast, free to use, and you can search anonymously. When you get your results, ask those insurers on your shortlist whether they are offering any deals or promotions, then go ahead and buy the policy that meets your healthcare needs and your budget.

Look for a new policy on the healthslips.com.au calculator, or compare your current policy to others on the market to see whether you’re still getting the best value.

healthslips.com.au does not provide general or personalised advice. Your particular circumstances are likely to impact the accuracy, completeness and relevance of the information or results. Take this into account before making a decision and talk to an expert for financial advice. 

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.