Health Insurance and Credit Cards

[Vargster]

So I'm 25 and I figure it's about time I grow up and start doing adult things, like getting health insurance and considering a credit card... Not the most exciting topics, I know.

Health Insurance: Deciding between getting hospital and extras, or just extras. I know if I get just extras it is a gamble, but it's also about a third of the price. All prices below are for couples cover:

Telstra have a corporate plan that gives me an 8% discount with BUPA and also accelerates my annual rebate / amount that I can claim to that of a customer who has been with them for 5 years, but only on certain hospital and extra plans (about $41 per week+). Alternatively, I could go with a cheaper option for hospital and extras (about $29 per week) but I get no extra rebates / amount I can claim regardless of how long I stay with them for, it's about $400 dental per person, per year, $300 physio p.p per year etc.

Finally, I could go with JUST extras cover for about $14 per week, which gives me a higher rebate amount and it also increases based on how many years I stay with them. My 5 year accelerator DOES NOT apply to this option, and the amount I can claim back on each item is slightly less ($30 from dental rather than $35, etc).

Any experience in this area or recommendations would be appreciated.


Credit Cards: This is something I've held off on because I didn't trust myself to use this with self control, however I now feel like I'm SOMEWHAT more responsible and wouldn't get myself into too much trouble. I've done a bit of research and I feel that going with a credit card that offers frequent flyers / rewards may be worth it in the long run, however the annual fees makes it less attractive at the beginning. I'm also looking for a credit limit of approx. 8-10k and I know that this can also affect the annual fees, particularly as a new customer.

Again, any recommendations or experience would be much appreciated.

Thanks guys!

 

[Mr Beast]

I've got health insurance on a corporate plan through work with Bupa, been with them for about 4 years now. If you're working and you don't have health insurance you'd be paying quite a bit for medical levy. If you have health insurance that's some more extra money in your pocket come tax time.

In terms of credit cards, yes they are dangerous if you do not know how to use and manage it properly, I've got an AMEX Platinum Charge card, works well for me because I pay everything I use in full at the end of the billing cycle, with no interest plus the added benefit of the points which are the best rewards system in out there compared to banks.

Definitely get health insurance check out iSelect as they do comparisons with various health insurance and it's tailored to your needs, as for a credit card if you can manage it why not. You will only benefit from it (points/rewards) if used correctly.

 

[Vargster]

I've got health insurance on a corporate plan through with with Bupa, been with them for about 4 years now. If you're working and you don't have health insurance you'd be paying quite about for medical levy. If you have health insurance that's some more extra money in your pocket come tax time.

.

In regards to this, if I get health insurance prior to June 30 does that effectively erase the medicare levy I pay for the entire financial year? or does it work on a pro-rata basis from when I signed up. How much of a difference does it equate to when doing your tax return?

 

[Mr Beast]

In regards to this, if I get health insurance prior to June 30 does that effectively erase the medicare levy I pay for the entire financial year? or does it work on a pro-rata basis from when I signed up. How much of a difference does it equate to when doing your tax return?

Depends on your accountant, you could potential get away with the whole year about $900 I think but someone please correct me if I'm wrong.

 

[dogkat]

Health insurance - recommend hospital & extras.

I was with HCF for years and then changed to NIB to save about $15 a month.

Unfortunately, extras will come back to bite me in a big way tomorrow, because I'm going to be hit with a huge fee for an overnight stay in hospital (just a sleep study re insomnia).

But if you are young and healthy, it shouldn't be a problem.


Unfortunately, I am definitely NOT the person to ask about credit cards.

 

[Rodzilla]

if you need a credit card dont get one

 

[Mr Beast]

There are many advantages in having a credit card IF managed correctly.

Example.

1. You pay a bill with EFT, Bpay, Post Office, Cash, what do get for it? Nothing

2. You pay a bill with a credit card, you get rewards points = which can potentially reward you with merchandise, vouchers, points for credit. hotels, flights international/domestic. Free travel insurance so many benefits depending on what type of credit card you choose. Some real estates also accept credit cards to pay your rental that's a huge way to accumulate points

 

[Mr Beast]

I might just add the banks/leader only makes money from you paying interest and annual fees this is just from a cards perspective.

 

[Rodzilla]

There are many advantages in having a credit card IF managed correctly.

Example.

1. You pay a bill with EFT, Bpay, Post Office, Cash, what do get for it? Nothing

2. You pay a bill with a credit card, you get rewards points = which can potentially reward you with merchandise, vouchers, points for credit. hotels, flights international/domestic. Free travel insurance so many benefits depending on what type of credit card you choose. Some real estates also accept credit cards to pay your rental that's a huge way to accumulate points

those reward points sound like a trap to spend more money

 

[Moe]

those reward points sound like a trap to spend more money

Your face is a trap

 

[Mr Beast]

those reward points sound like a trap to spend more money

Depends on how you look at it. Like I said before IF used and managed correctly you'll be okay.

Paying for living expenses like petrol, food, groceries, rent isn't really a trap when you have to use your money to pay for these things.

 

[Vargster]

There are many advantages in having a credit card IF managed correctly.

Example.

1. You pay a bill with EFT, Bpay, Post Office, Cash, what do get for it? Nothing

2. You pay a bill with a credit card, you get rewards points = which can potentially reward you with merchandise, vouchers, points for credit. hotels, flights international/domestic. Free travel insurance so many benefits depending on what type of credit card you choose. Some real estates also accept credit cards to pay your rental that's a huge way to accumulate points

That's what I was thinking - I would only want to use it when I had the money in the bank ready to pay it off, however there have been a few occasions the card would have come in handy when I didn't have the cash on hand. For example, last Friday my ATM card was eaten (dunno why...) and If I had a credit card I could still buy lunches, train tickets etc quite easily until my replacement card arrived. There's also been times when I've been wanting to book accommodation / flights but I know the funds wouldn't be available to me for a couple of days, at which point the prices may have changed. Other than that, I wouldn't want to be using it for purchases I couldn't afford.

 

[dogkat]

iSelect might help with choosing health insurance.

 

[Rodzilla]

Your face is a trap

yeah it trapped your mum in my bedroom tbh

 

[Natboy]

If you get an online quote with iselect they will hassle the shit out of you if you use your real phone number
I have a comm rewards CC through my broker that has no annual fees & I get flight centre dollars.
If you don't think you can pay it off in full every month avoid them. They are such a trap & if you lose control of them it will take you forever to pay them off. They also count against you heavily when you apply for a home loan

 

[Mr Beast]

If you get an online quote with iselect they will hassle the shit out of you if you use your real phone number
I have a comm rewards CC through my broker that has no annual fees & I get flight centre dollars.
If you don't think you can pay it off in full every month avoid them. They are such a trap & if you lose control of them it will take you forever to pay them off. They also count against you heavily when you apply for a home loan

Always fake details just for a quote!

 

[Mr Beast]

That's what I was thinking - I would only want to use it when I had the money in the bank ready to pay it off, however there have been a few occasions the card would have come in handy when I didn't have the cash on hand. For example, last Friday my ATM card was eaten (dunno why...) and If I had a credit card I could still buy lunches, train tickets etc quite easily until my replacement card arrived. There's also been times when I've been wanting to book accommodation / flights but I know the funds wouldn't be available to me for a couple of days, at which point the prices may have changed. Other than that, I wouldn't want to be using it for purchases I couldn't afford.

Scenarios like that, CC can be very handy + the added travel insurance cause you booked on your CC. Travel insurance itself is generally about $100-$200 depending on coverage. Maybe in your case just limit yourself with a small credit line size which can be arranged with lenders $500-$2000 whatever suits you.

 

[Natboy]

Always fake details just for a quote!

They called me 3-5 times a day for months. I want to make a few fake quotes using 0406 650 430, the rejection line haha

 

[Vargster]

Yeah I looked on iselect and the phone calls started - I got 4 in the space of 30 minutes. told them I'd already sorted something out, but I've still had one or two phone calls since them.

Thanks for the help guys

 

[The DoggFather]

It's always good to have health insurance, not just for the tax benefits.

I have had continued health insurance since I was young, last year I had a virus that hit my heart causing heaps of problems for my health, I had a pacemaker implanted 5 weeks ago, cost me 500 bucks in excess and basically only waited 1 week. The operation cost 70k with a minimum 6 months waiting list. I WAS healthy until that virus hit me.

Moral of the story, if you can afford it, it's worth having. Btw, I'm with NIB and my son is covered at no extra cost until he is 21 which is pretty good.