Please forgive me, I’ve left it until the last minute to write about this deal as it’s been in the market for a while now. We’ve been running the numbers on our Discord channel (why not join us?) for this deal to conclude it makes financial sense. What am I talking about, you may ask? It’s the latest Medibank health insurance policy which comes with a whopping 150,000 bonus Velocity points when you join before the end of the month.
Thankfully, an email from a reader (thanks, Phil!) spurred me into action to give you the lowdown on the offer.
Full disclaimer: I don’t get paid by Medibank to promote their product. We’re also talking about health insurance here so don’t take this as advice… we’re just after the bonus points (and maybe get some remedial massages and dental along the way).
With that out of the way, let’s take a look at the offer!
The deal
- For a limited time, join and maintain an eligible Medibank hospital & extras cover and get up to 150,000 Velocity Points and 6 weeks free cover.
- Offer ends 30 June 2023.
- New Medibank members only. Terms and conditions apply. You must hold the same eligible cover for 90 days to receive the bonus Points. Use promo code ‘VELOCITY’.
Sounds easy, right? Well, it is actually pretty straightforward. However, to get the 150k points, we will need to sign up for the most expensive policy, which depending on your age etc., can actually be a bit tricky!
To get the full 150k points, we will need to get a cover that’s at least $130 a week. Keep in mind that we need to hold it for 90 days in order to get the points. However, there’s also 6 weeks free! The 6 weeks free kicks in after 42 days. Since 6 weeks = 42 days, we technically only need to pay for 48 days instead of the 90 days.
The numbers
So, with that in mind, the numbers should work out as follows:
90 / 7 = 12.85, so let’s round this up to 13. This means we will need to pay for 13 weeks at a rate of $130 (replace this number with whatever you’re getting quoted), which means the total cost of 150k Velocity points will be $1690. This is an “ok” price but not great! So let’s factor in the 42 days free. In this case, the formula changes. We can now do 48/7 = 6.85, so we round it up to 7 weeks. Now we’re looking at a much better deal because 7*130= $910 for 150,000 points. That’s $0.006 which is a fantastic rate.
Tips & Tricks
To get the right amount to reach the minimum target, you will need to go for the most premium policy. In my case, the most expensive I could get was only $125 a week, this is due to my age etc. I imagine that if you’re older, it will be easier to hit the minimum but harder to work down to the desired $130 sweet spot.
Including coverage for childbirth will also boost your premium. So, if you can’t reach the minimum, I recommend including this—even if you don’t plan on having children.
Anything else you should know?
The cover itself seems to be pretty good as well! Since this is the most premium cover, there’s no excess and Medibank is waiving the extras waiting period for both the 2 and 6-month categories. This means you can instantly claim general dental, massages, eyewear, and a few other things which should bring down your overall cost to well below zero if you were planning to spend money on these things anyway.
In any case, let me know what you think about this offer! And of course, if you spot any mistakes in my numbers, do let me know.
To get this deal visit Medibank here.
Good write-up but i think for most folks it makes sense to just switch yearly, and grab whatever points bonus they can. I’ve done that to get 55K points for this Medibank offer.
It depends on how you value the cover. If you’re after a premium cover like what they offer it could make sense.
You can’t combine the two separate offers of VELOCITY and LIVEBETTER (which gives you the 6 weeks free).
the Velocity promo includes the 6 weeks free. See the promo description “So, do your health a favour – join and maintain eligible Medibank hospital & extras cover and you could earn up to 150,000 Velocity Points plus 6 weeks free cover. We’ll also waive the 2 & 6 month waits on extras.” note the “6 weeks free cover” they advertise?
Hi Immanuel
Great post
Two queries:
1) Given they charge fortnightly, shouldn’t the calculation be for 8 weeks and not the 7?
2) The T&Cs state “…credited Velocity Points in the fourth month. Points may not be allocated where the policy is cancelled…”. Will this mean we need to hold the policy for up to 4 months?
Hi Paul, great point and yes looks like you’re right about the fortnightly charge (unless they will refund us pro-rata?). As for the T&C, I read “…remain up-to-date with premium payments for 90 consecutive days from the policy start date to be credited Velocity Points in the fourth month”. My take on that is that points will be credited in the forth month IF the member has paid the premium for 90 consecutive days. I feel the t&c contradicts itself a bit about not giving points on cancellation though, what do you think?
I signed up today. Have been playing around with the various offers and quotes and after doing some calculations I have gone down the following path.
Neither myself or my partner currently have private health insurance so we are in for a lifetime cover surcharge. Mine is 6% and my partners is 56%.
After discussion with a fantastic knowledgeable phone consultant we have opted for the lowest level cover < $44 per week (surcharge is not included in calculating bonus points). But we are also purchasing individual policies.
Mine works out at $45 a fortnight and hers $56 a fortnight.
So for a total cost of a maximum $303 we will receive 45,000 + 20,000 for the direct debit bonus each.
130K Velocity points for $303 is a great haul.
The kicker is we also can immediately get a new glasses from Specsavers up to the value of $295 each before it is time to cancel.
Thanks Immanuel for the heads up.
Why is it that existing customers don’t get these deals?
Because you’re an existing customer? No need to give you an incentive to join as you’re already a paying customer. Marketing 101.
My tip: don’t be loyal to big corporations because they will never be loyal to you.
Thanks so much for sharing this offer, Immanuel. It made sense for my partner and me to move across for this offer, and we were able to get the minimum $130 per week, so we get the 150,000 VF points. Great deal!
Question about cancellation or change of policy.. as a single who may only be getting this cover for the points and doesn’t need that huge level of coverage, when looking into things like cooling off peridos etc, you onky have 30 days to either cancel or downgrade your policy with medibank, and the downgrade to a lower premium can only be done if no claims can be made.
Can anybody see a way around this?
I don’t think you can expect to get the points for free haha $910 or there abouts is as close to free as we can expect. As for claims, there’s a lot of value anyone could get out of it in while waiting for the points: massages, dental check-up, physio etc.
Hey team! Just wanted to let everyone know it seems to be on again until 31/10 – albeit at a slightly lower top rate of 140,000 points. Still a good promo as my partner and I are looking at changing from our current providers and merging into one.
Beauty! We’ll take a look at it, thanks for the heads up!