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Paying your premium
You are here: PrivateHealth.gov.au > Health insurance explained > Managing your insurance > Paying your premium
Paying in advance
Generally, you must pay contributions at least one month in advance, unless your 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.
If there is no 'rate protection' policy, 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.
Failure to pay
If you are more than two months behind in paying your contributions, your private insurance will lapse and you will not be insured.
Some insurers may not accept payment of arrears in excess of two months. When you resume your payment, the insurer may impose further waiting periods before you can claim benefits again.
Suspending your membership
A suspension of health cover means that, with the agreement of your health insurer, you may stop paying your premiums for an agreed period of time. You will not be able to claim any benefits during your suspension. It is important to check whether you will need to re-serve any waiting periods after a period of suspension as rules vary between health insurers. In addition, if you are over the income threshold you will be required to pay the Medicare Levy Surcharge for the period that you are suspended. Health insurers may grant suspensions at their own discretion for circumstances such as working or studying overseas, financial hardship or temporary unemployment.
Suspending your membership with the agreement of your health insurer will not affect your Lifetime Health Cover entitlements.
When you start paying premiums again, your benefit entitlements will continue on the same basis as before your membership was suspended.
More information
The Private Health Insurance Ombudsman website has a brochure on waiting periods that may help you manage your health insurance and avoid problems (PDF 2.4 MB).