Insure? Not Sure?

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Introduction

Contents

General Information

Surcharges and Incentives

About Private Health Insurance

Types of Cover

Questions You Should Ask

Common Terms

Insurer Contact Details

About Private Health Insurance

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Paying your contributions

Paying in advance

Generally, you must pay contributions at least one month in advance unless payments are made under a payroll deduction scheme or by direct debit.

The maximum period for which you may pay in advance is usually 12 months.

Some insurers offer a 'rate protection' policy under which, if you have paid in advance, you will not have to pay extra if rates are increased during the period for which you have paid. For example, if you pay your premium in advance for 12 months, and there is a rate increase after four months, with rate protection, you will not have to pay the increased rate until your 12 months of cover ends.

When no 'rate protection' policy applies, the insurer will ask you to pay the balance owing on the new rates, or reduce the length of time your payment covers. When you are advised of rate increases, check whether the increase will affect the length of time your advance payment covers.

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Discounts on premiums

Generally, you may get discounts for contributions paid in advance on a half-yearly or yearly basis. You may also receive a discount if your contributions are automatically deducted from your salary, wages or bank or credit card.

Unpaid contributions

Your private insurance will lapse - meaning you are not insured - if you are more than two months behind in paying your contributions.

Some insurers may not accept payment of arrears in excess of two months. In such cases they may impose further waiting periods when you resume contributions.

Cancelling your membership

If you decide to cancel your membership, your insurer should pay back any contributions you have paid in advance. The insurer may deduct a small administration charge.

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Private Health Insurance Administration Council

Suite 16, Level 1, 71 Leichhardt Street, KINGSTON ACT 2604
Telephone 02 6215 7900 | Facsimile 02 6215 7977 | Email phiac@phiac.gov.au

Last modified: 22 July, 2005