What Private Health Insurance doesn’t cover in times of crisis

Private health insurance will cover any eventuality, right? Sadly, no. Clients often think that having private health insurance is a health catchall and that it will support you through any health crisis. Unfortunately, private health insurance won’t always cover all your expenses in the case of severe illness – for that, you need trauma insurance.

Trauma insurance is not interchangeable with private health insurance – it has a specific purpose; to provide financial support while you deal with the varied impacts of critical illness.

When you have trauma insurance, a serious illness (such as heart attack, cancer or stroke), triggers a lump sum payout. Just like the costs of getting treatment, benefits vary according to the severity of the illness. They help you cover out-of-pocket medical expenses and day-to-day living costs if your live-in companion needs time off work to care for you – effectively diminishing your household income.

Not having trauma insurance is traumatic in itself!

One of the most expensive and most common critical illnesses is cancer. Families are often put under severe financial strain from the resulting changes to their lives.

Tens of thousands of dollars of superannuation funds have been used to pay such expenses. Some rare childhood cancers can cost hundreds of thousands. Imagine having to suddenly fund these costs. The ‘extras’ health insurance you researched and purchased so carefully – to cover your orthodontics and new glasses – isn’t going help.

Can you afford not to be covered?

Treatments have advanced significantly in the last 20 years, with increasing survival rates and prolonged treatment programs. Trauma insurance might get you access to cutting edge trials. It is quicker and easier than fundraising or borrowing, during such a stressful and time-sensitive period.

Trauma insurance plus private health insurance gives you flexibility – of choice of hospital and doctors and even, in some cases, choice of treatment should this depend on your ability to pay.

The vital message

Don’t fall into the trap of thinking that private health insurance helps in every health scenario. Would trauma insurance, giving you financial security in a health crisis, give you more peace of mind?

If you'd like to check with an Adviser to make sure you’re covered for a critical illness, click here.