22
Oct

Trauma insurance can fund out of pocket medical costs for some conditions

Trauma insurance (sometimes referred to as Critical Illness insurance) can pay a lump sum if the insured is diagnosed with certain medical conditions – such as breast cancer.

Each insurer issues a product disclosure statement describing what is covered and what diagnosis is needed for a claim to be paid.

Australian life insurers paid over 5,000 trauma insurance claims in the year to June 21, with the average size per claim of around $200,000.

Any payment can be used at the beneficiary’s discretion, such as funding the cost of out of pocket medical expenses, or replacing lost income.

Out of pocket medical bills exceeding $10,000 have become common place for patients with breast cancer and certain chronic conditions, a national survey conducted by the Consumers Health Forum of Australia has found.

The Out of Pocket Pain survey drew 1,200 responses, many from people shocked to learn that despite having health insurance they still had to pay thousands of dollars out of their own pockets for critical surgery, other treatment and diagnostic scans.

Among key results of the survey were:

1. More than a quarter of respondents treated for breast cancer incurred out of pocket costs of more than $10,000
2. More than a third of respondents with chronic conditions like multiple sclerosis reported out of pocket costs of more than $10,000
3. One in six respondents said that out of pocket costs had a significant impact on their lives
4. A frequently-expressed view that using private health insurance would expose people to more costs
5. A third of respondents said the out of pocket costs were not explained to them before treatment.

Source : https://chf.org.au/media-releases/out-pocket-pain-10000-issue-0

Life insurance and Financial Advice services are provided by Experien Insurance Services Pty Ltd (EIS) ABN 99 128 678 937 and Experien Financial Services Pty Ltd (EFS) ABN 32 631 346 757. EIS and EFS are a Corporate Authorised Representative (No. 320626 and No. 1274354) of Affinia Financial Advisers Limited ABN 13 085 335 397 AFSL No. 237857. This is general information and you should not act on it, or rely on it, without obtaining personal advice. Always read the product disclosure statement (PDS) issued by an insurer before considering to take out insurance. See our website for our Financial Services Guide.