Insurance Limits/Renewal Question

Twitchh on 27/03/2023 - 13:23
Last edited 27/03/2023 - 14:09 by 1 other user

Hey just a quick question because I want to make sure I'm not doing anything dodgy.

I'm 24M and in September 2022 I bought extras only health insurance for the first time because I needed new glasses and needed to go physio so it worked out financially better to get a certain plan with HCF. I used all my physio and optical limits before 31 December 2022.

I checked today and these limits have all been reset to their full value, and as I researched online, this is because they reset every calendar year with HCF.

My question is that if I were to use the full value of the physio and optical limits again, but then not renew my insurance in September 2023/cancel it before it renews, will the insurance ask me to pay back those additional second limits?

It seems weird that I can get double the value of my insurance limits for only paying one year's worth of insurance. Just want to make sure I'm not doing anything wrong and going to get stung with a bill come September 2023.

Cheers

Financial Health Insurance Insurance

Comments

  • Ocker on 27/03/2023 - 13:40
    +3

    You will not be asked to repay any claims made in 2023

  • Muzeeb on 27/03/2023 - 13:41

    Did HCF waiver the waiting periods?

    • Twitchh on 27/03/2023 - 13:51

      No.
      I just had a look and I actually paid 1 month first in early August. Then early September I paid the annual renewal. 2 month waiting period so I started claiming stuff in October.

  • soan papdi on 27/03/2023 - 16:37

    It seems weird that I can get double the value of my insurance limits for only paying one year's worth of insurance.

    AFAIK, if you sign up to another extras (with a different provider) in CY2023 after canceling your current HCF plan. your usage now will still count in the new policy. I'm fairly sure the insurers talk to each other when you apply, so your purchase and claims history is sent across. Happy to be corrected if someone knows more.

    • Twitchh on 27/03/2023 - 17:06

      Interesting. That's good to know. I guess I wouldn't sign up for a new one until maybe Feb 2024 then if that was the case. Repeating these cycles means you would basically get double the extras limits for one annual fee instead of two, assuming you can use most of your benefits with the first or last two months of the year depends on the cycle.
      This seems like a broken hack.

      E.g.
      Sign up August 2022 and pay Annual Fee #1
      Use all limits by December 31st 2022.
      Limits reset 1 January, use all limits before the end of July 2023. Cancel Insurance.
      Sign up again in March 2024 and pay Annual Fee #2
      Use all limits by December 31st 2024.
      Limits reset 1 January 2025, use all limits before the end of March 2025. Cancel Insurance.

      If you don't need the limits year-round and only specific times (e.g. optometrist visits or Dental visits) then you basically get 4 years worth of limits for the price of 2.

      • YesPleaseThankYou on 27/03/2023 - 17:16

        If you don't need the limits year-round and only specific times (e.g. optometrist visits or Dental visits) then you basically get 4 years worth of limits for the price of 2.

        Provided that relevant waiting periods have been waived when you re-join — look for relevant join offers.

  • YesPleaseThankYou on 27/03/2023 - 17:02

    HCF resets extras limits on 1 January.

    You could claim your full extras on 31 December then again on 1 January.

    Very few funds reset limits based on Date of Joining. (I think Doctors Health Fund is one.)

    A smaller number of funds reset limits on 1 July (eg, Peoplecare). You could switch to that fund on 1 July and use your full new extras limits.

    • Twitchh on 27/03/2023 - 17:08

      Thank you, that doesn't necessarily answer my question though.

      If I use all of my limits again in the new calender year but cancel my insurance before renewal, is there any consequences/downsides?

      • YesPleaseThankYou on 27/03/2023 - 17:14

        Why would there be? You are making a claim in accordance with the policy.

        It seems you are conflating your annual payment (if I am reading your posts correctly) with annual extras limits. See above re annual limits.

        Check some of my health insurance-related posts. I change funds over 5 times a year following the offers.

        When you change funds, you are issued with a Transfer Certificate (and, if you have requested, the old fund will provide it to the new fund).

        • Twitchh on 27/03/2023 - 17:17

          Because it seems broken that I can get double the limits for no extra cost and cancel before the next payment is due.

          Oh well, i'm not complaining if that's the case. Guess i'll use 'em up and cancel my insurance in July.

          Cheers

          • RockyK9 on 21/01/2024 - 16:37

            @Twitchh: Same question - did you end up cancelling after claiming double? Any issues?

          • YesPleaseThankYou on 21/01/2024 - 18:18

            @Twitchh: The system is working as intended.

            Funds make a business decision as to when they reset limits for extras, with full knowledge of the opportunity this presents to someone churning across funds.

            • RockyK9 on 21/01/2024 - 21:18

              @YesPleaseThankYou: You claim before 31st Dec then when it resets on the 1st Jan you claim again then cancel extras I'm assuming

              • YesPleaseThankYou on 21/01/2024 - 21:20

                @RockyK9: That's the usual process.

                What people are talking about here is switching to a fund, eg, Peoplecare, which resets extras mid-year, then again claiming in the previously exhausted category.

                I don't cancel extras. Just follow the 1 month + 6 weeks free offers.

                • RockyK9 on 21/01/2024 - 21:23

                  @YesPleaseThankYou: Yeah that seems a bit much, I doubt the insurers don't talk to each other. I only use optical and dental so extras isn't worth it for me if I keep it active for the entire year.
                  However tried it out cause of gift card and free week offers

                  • YesPleaseThankYou on 21/01/2024 - 21:28

                    @RockyK9:

                    that seems a bit much,

                    Completely within the rules.

                    I doubt the insurers don't talk to each other

                    They do, via the transfer certificates.

                    • RockyK9 on 21/01/2024 - 22:20

                      @YesPleaseThankYou: I've heard some insurers will make you pay back any benefits paid if you cancel your extras insurance within 3 months of making a claim though.

                • Twitchh on 23/01/2024 - 12:01

                  @YesPleaseThankYou: No i was talking about just cancelling all insurances. So I had extras cover from Aug 2022 to Aug 2023. I used all my extras limits by December 2022. Then I got them back on 1 January 2023. Then I used them all AGAIN by July 2023. Then I just cancelled the renewal and now I don't have extras cover.

                  But that's okay, the limits have reset now for 2024, so around June I will sign up for extras again and go do my general dental and optical again.

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