Imagine you had invested the money on the ASX and the pandemic hit, The stock market went into a spiral downwards.
If you had been invested with the companies that took a hit such as airlines, travel companies. You would have lost a bit of money. If then, say you need a few sessions of physiotherapy you may have to draw down on your savings leaving you even more exposed.
On the other hand, your money with XHP is invested in basic bank depository products which are linked to the interest paid by the banks. So your money is not invested and risked.
However, you must consider that some health funds extras cover may change their offering or limits, in which case you may be better off with private health insurance extras cover. It would be in their offer document.
Information provided is General Information only. Your personal circumstances have not been considered and do not constitute financial, legal, accounting or tax advice. Past performance is not indicative of future performance. Information used here is based on assumptions as above and as having occurred in the past, is not a future forecast. Account balance calculation is based on no spend for health with either PHI or XHP. The return for health insurance assumes no claim on a health insurance policy over the relevant period. No value has been attributed to holding a health insurance policy in the relevant period however it may be desirable to hold health insurance based on your personal circumstances.
Xtras Health Plan Ltd – AFSL500574
Xtras Health Plan Savings Scheme – ARSN 627076411
Xtras Health Plan Ltd – ACN 618020885
Xtras Health Plan Savings Scheme (Xtras) is not an insurance policy and you should consider your personal circumstances before deciding whether to open an account. Funds deposited to an account will not be eligible for a private health insurance rebate. Xtras may be considered as a replacement for or to act supplementary to private health insurance depending on your personal circumstances. Xtras Health Plan Ltd does not warrant that Xtras is suitable for your personal circumstances and you should consider your health and financial needs before deciding whether to open an account. There is a risk that you may have insufficient funds in your account to meet the costs of health treatment depending on the treatment required and amount deposited to your account.