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Why private health insurance isn’t enough

clock icon April 5, 2018
tag iconInsurance & Income Protection

People often ask our Financial Planners why they need trauma cover given they have private health insurance or can go through the public system for certain illnesses.

What most people don’t know is that not all costs are covered by private health and there are out-of-pocket bills that can cost you tens of thousands.

The Consumer Health Forum’s (CHF) survey (Out of Pocket Pain), revealed 38% of those with autoimmune conditions, 27% with breast cancer and 26% with other cancers have forked out more than $10,000 in out-of-pocket expenses in the past two years.

“Out-of-pocket” refers to extra costs not covered by health insurance or Medicare that they must fully pay, or the “gap” for services that attract a Medicare or health insurance rebate.

Many families do not have this sort of spare cash available which is why Trauma protection is important as it can alleviate the stress of funding this out-of-pocket-cost. It will help pay for the costs that aren’t covered by health insurance, such as the best medical treatment, carers and rehabilitation. The money received will also help replace any lost income while away from work, particularly if you have used up all your sick leave and savings.

Trauma insurance provides a lump sum payment for up to 47 listed events such as cancer (which makes up 65-70% of all Trauma claims), heart attack and stroke, as well as some autoimmune conditions such as MS and severe rheumatoid arthritis.

Trauma cover is relatively affordable, and you can essentially choose to insure for any amount (generally we look to insure one year’s wage). Evidence shows that 1 in 3 people will suffer from a listed traumatic event in their life which is why Trauma cover is very important.

Speak to our Financial Planners for peace of mind knowing that you and your loved ones will be supported if you were to suffer a serious illness.

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