A new product aims to change the game when it comes to health insurance and the struggles with splurging on extras cover.
ExtrasJar contributes funds to an investment used for extras cover rather than customers paying premiums for products.
"You're now building a nest egg, or kitty to save your money, rather than paying for a voucher hoping to be able to use that later," chief executive Reece Frazier said.
"That's the big difference for us. It's your money, it's always there, it never expires, it keeps growing each year."
ExtrasJar spruiks 100 per cent back on extras, savings that never expire and allows unused money to roll over each year.
The typical person taking out extras cover spends $559 on premiums and another $403 in out-of-pocket expenses: a total of $962 a year.
But the average benefit received is $448: a return of 47 cents for every dollar.
ExtrasJar was started because of the co-founders' own experience with health insurers.
"I've never claimed ever on my health extras and then I damaged my knee and I only got $200 back as benefits, even though I've been paying premiums for ten years," co-founder John Connor said.
Customers can keep their hospital cover with their current fund and choose how much to pay each month for extras cover with ExtrasJar.
They get a Mastercard that can only be used for the allied health providers they choose as part of their plan.
But rather than set limits, they decide how much of the bill to pay.
Frazier said ExtrasJar is aiming to "give people the tools" to use extras cover without overspending or losing money.
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This article was originally published on 9News.
ExtrasJar are currently participating in the 2023 ilab Accelerator program. During the three-month program ExtrasJar will receive mentorship, $10,000 to accelerate their startup, and have a chance to pitch their idea at ilab Pitch Night.
