2% discout for yearly instead of monthly health insurance bill

#1

Dear all,
i just discovered that my insurance (assura) offers a 2% discount on the premiums if i pay the full year of premiums in advance (other than on monthly basis). now I ask myself, doas that make sense in terms of my stash?, btw they also offer 1% for the half-yearly payment, but ill ignore that.

yes:

  • 2% is 2%, based on CHF ~2856 premium (238/month), this is CHF 57 saved

no:

  • stock markets on average go up more than 2%, so i better have the money there
  • i need to have CHF 2800 liquid on top of my cushion (not relevant/ given)

so i went ahead and compared paying one year ahead at 2% discount with paying monthly and having the rest invested at 4%. interestingly, the difference is diminishing, and paying all year at 2% comes ahead by 4 (!) francs. break even comes at around 4.5% market yield or CHF 260 monthly premium

30 minutes invested for CHF 57, somewhat ok-ish if not too often :smiley:

#2

thats a good tip I will see if my insurance does the same and I pay for 3 people :slight_smile:Thanks

#3

Interesting. I switched already from monthly payments to quarterly. Didn’t know annual can give you so much savings.

BTW Sure, you can compare it to stocks, but that’s not really a fair comparison. Stocks give you an average return, can go up, can go down, and these are rock solid 2% savings, assuming Assura doesn’t go bankrupt. I guess you can treat it as diversification :wink:

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#4

yesyes, you are right, i just made a rough calculaion for the expected value. since these 2% discount come risk free, it adds in favor of the yearly payment

#5

I think that after having comfortable safety nets, it’s more often than not worth it to pay in advance.
The biggest example in Switzerland is the CFF/SBB AG on which one can save at least 15%

#6

I checked mine and group mutuel gives 2% discount for annual and 1% for half a year. So in my situation that is over 200chf saved thanks :slight_smile: . You can do this any time and they reimburse you for the months you already paid.

#7

Interesting @nugget !!
I am with Helsana, they give 0.5% discount for half a year, and 1% for a single payment per year. I pay 350 CHF/month (not the cheapest but I stick with them for personal reasons), so that’s 42 CHF saved per year.
However, the biggest advantage IMO is approving only one payment per year. I get e-bills, but it’s still a hassle to approve all these payments. I’d rather keep it simple.

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#8

Is that discount on the whole premium, or just the complimentary coverage? At my provider (CSS) it is only on the complimentary part, so not really worth it.