Why do I need Trauma Insurance when I have Private Health Cover?

When we discuss Trauma insurance with clients, they often tell us that they have private health cover, so they don’t see the need for trauma insurance. In reality, these two kinds of insurance are very different. There is a general belief that, if you have private health insurance, all your medical expenses are covered in the event of a significant illness. Unfortunately, this is often not the case.

Trauma insurance is not designed to replace private health insurance. It’s designed to fund the financial impact of suffering a critical illness. A Trauma insurance policy pays out a lump sum benefit on diagnosis of a specified critical illness such as cancer, stroke, heart attack and many others. This benefit helps cover things like out-of-pocket medical expenses and the loss of your spouse’s income, as they would typically need to take time off work during treatment. Depending on the type of illness and the severity, the financial impact can vary significantly – from the tens of thousands up to the hundreds of thousands of dollars.

The trauma of not having Trauma Insurance

Cancer is one of the most common critical illnesses in Australia, and is often one of the most expensive to treat. Recent examples that we are aware of include a woman who had to raid her superannuation to fund $60,000 worth of out-of-pocket medical expenses following breast cancer surgery, despite having private health insurance, and a 12-year-old boy whose parents were faced with a $180,000 expense for his Hodgkin’s lymphoma medication. So, unless you have the necessary funds available elsewhere, your medical treatment options are often limited by your financial means.

Could you afford the best treatment?

The benefit of having effective Trauma insurance on top of your private health insurance, is that it provides you with the necessary funding to ensure that you can choose the best possible treatment for your illness, and aren’t forced to take options that result in a poor quality of life and/or a much lower recovery rate.

The good news is that survival rates have increased significantly, due to advances in medical treatment. Unfortunately, this can come at a significant cost at a time when stressing about finances is the last thing you need. So don’t be caught out by thinking that private health insurance pays all the bills. Effective trauma insurance could give you financial flexibility as well as access to the treatment you need, when you need it.

If you would like more information please call 1300 ELSTON or email info@elston.com.au and an adviser will be in touch.

WARNINGS AND DISCLOSURES: This material has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making an investment decision based on this advice you should consider whether it is appropriate to your particular circumstances, alternatively seek professional advice. Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a Product Disclosure Statement (“PDS”) relating to the product and consider the PDS before making any decision about whether to acquire the product. You will find further details of the service we provide and any cost to you within the Financial Services Guide. Any references to past investment performance are not an indication of future investment returns. Prepared by EP Financial Service Pty Ltd ABN 52 130 772 495 AFSL 325 252 (“Elston”). Although every effort has been made to verify the accuracy of the information contained in this material, Elston, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information.

Contact Us