Case Study | Extras Cover
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Use IT or Keep IT Case Study

USE IT or KEEP IT with XHP - NOW YOU CAN!!

So let’s compare the pair for Betty who is 32, and has had a cover for 10 years. Let’s compare “apples with apples” for the comparison the following assumption has been made

  1. Contributions to Private health insurance Extras cover and XHP is the same – $5/day paid monthly. Annual total paid to be $1825
  2. No interest earnt has been added to the calculation for XHP
  3. Betty is healthy and has not been to a health provider in the last 10 years
  4. Funds in both Private Health Insurance Extras and XHP are used for health needs only
  5. Year-End balance is net of charges. XHP Account balance is net of XHP Scheme Fee(1%), Management fee of (.5%) of monthly account balance and the platform fee is $199/year
  6. Annual premium increases have been excluded with Private Health Insurance Extras.

If Betty did not spend on any extras needs

 
Xtras Health Plan Savings Scheme
Private Health Insurance Extras Cover
YearNet BalanceCumulative PositionNet BalanceCumulative Position
1$1,550.05$1,550.020-1825
2$1,448.00$2,997.930-3650
3$1,351.91$4,349.710-5475
4$1,261.43$5,610.960-7300
5$1,176.23$6,786.970-9125
6$1,096.01$7,882.710-10950
7$1,020.47$8,902.870-12775
8$949.34$9,851.860-14600
9$882.36$10,733.840-16425
10$819.29$11,552.720-18250

So what if Betty spends $1000 on her extras every year.

 Xtras Health Plan Savings SchemePrivate Health Insurance Extras Cover
YearNet BalanceCumulative PositionNet BalanceCumulative Position
1$603.72$603.720-825
2$600.61$1,204.320-1650
3$597.60$1,801.930-2475
4$594.62$2,396.540-3300
5$591.64$2,988.180-4125
6$588.68$3,576.870-4950
7$585.74$4,162.610-5775
8$582.81$4,745.420-6600
9$579.90$5,325.320-7425
10$577.00$5,902.320-8250
chart 1

So what if Betty spends $1000 on her extras every year.

Xtras Health Plan Savings Scheme
Private Health Insurance Extras Cover
Year Net Balance Cumulative Position Net Balance Cumulative Position
1 $603.72 $603.72 0 -825
2 $600.61 $1,204.32 0 -1650
3 $597.60 $1,801.93 0 -2475
4 $594.62 $2,396.54 0 -3300
5 $591.64 $2,988.18 0 -4125
6 $588.68 $3,576.87 0 -4950
7 $585.74 $4,162.61 0 -5775
8 $582.81 $4,745.42 0 -6600
9 $579.90 $5,325.32 0 -7425
10 $577.00 $5,902.32 0 -8250
** Calculation is based on the assumption that there is no GAP with Extras Cover offered by private health insurance extras cover
chart 2

FACT

Betty is better off with XHP as she is miles ahead financially to take care of future needs

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.

Proudly Australian for Australians

Australian Owned and Operated

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Suite2, 36 Macaree Street,
Berserker, Rockhampton,
Queensland 4701
Phone (07) 4807 6424
Email [email protected]

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.

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