Health Insurance Premium - Fortnightly Works out Cheaper?!

bloomer on 01/05/2018 - 01:05

Hi everyone. I was looking at my parents' health insurance and found something that seems really odd. They can pay manually fortnightly at $453.73, or monthly at $1027.80. (All longer periods are just multiples of the monthly premium.)

By my reckoning, that means that paying manually fortnightly works out cheaper (there are 26.07 fortnights per year x 453.73 = $11,829; whereas 12 months x 1027.80 = 12,333). That's a difference of just over $500pa! (Just in case this is a secret bargain that people don't talk about openly (Fight Club!), I'll just say the insurer is well-known, beginning with M.)

Meanwhile, the payments by direct debit are higher for fortnightly ($473), being approx equivalent per annum to other payment periods.

Am I overlooking something?

Financial Health Insurance Insurance

Comments

  • atris17 on 01/05/2018 - 01:41

    Account Fees maybe not yet accountable?

    Have to pay this fee every fornightly

  • vinni9284 on 01/05/2018 - 06:39
    +1

    Wow! $12K PA wtf? .. they must not be covered by the government subsidies.

    I would flog off Medibank Private and go to a non-profit PHI with the same level of cover.

    You will save HEAPS IMO.

    Medibank is rubbish and riddled full of issues after privatisation. I was with them, nothing but issues, left them and have never looked back. Many ppl are leaving them in droves.
    https://www.productreview.com.au/p/medibank-private.html

    I would call them and ask why is this the case. (inconsistency in your payments = not surprised tbh)

    Good luck switching to a better and cheaper provider :-)

    Cheers

    • bloomer on 01/05/2018 - 08:57

      Yeah, it blew my mind too. They're old, with lots of preexistings, and only moved to full cover late in life.

  • TheOtherLeft on 01/05/2018 - 07:41

    I've calculated paying weekly saves about $1.50 over the year compared to fortnightly/monthly/quarterly for my HCF. So that's what I do.

    • theHMASfriendship on 01/05/2018 - 07:50
      +6

      Nice don't blow that all on hookers and cocaine

  • o53djz7qTPY4der on 01/05/2018 - 08:22

    I guess the only advantage to paying yearly would be avoiding the price increases.. whether that would be more or less then the $500, who knows…

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