How much trauma insurance do you need?
When it comes to trauma insurance, you are financially preparing for an event most of us would rather not think about. And trauma insurance claims can vary from a minor to worst case scenario in terms of prognosis and future impact.
Determining a starting level of trauma insurance should be based on the worst case scenario to ensure an adequate level of financial reserves. But, have you considered all costs when determining a worst case scenario?
This article will help you consider and answer the following question, How much trauma insurance is enough?
How to calculate your trauma insurance levels
Typically when we look to answer this question, we consider current and future financial needs such as clearing debts, replacing income and covering expenses. We often need calculators to break these down even further, considering specifics around:
- salary replacement and inflation for the years required
- funeral costs and related expenses
- mortgage and other debt
- children's education
- cost of childcare and housekeeping expenses.
Trauma cover can help cover hidden medical costs
However what about the additional and often hidden costs of sickness and injury, like plegias, strokes and other degenerative conditions? Often there are additional medical costs for people facing a specific injury or condition that may not have been considered. And as this article highlights, these may require a large sum of money to cover.
For example, did you know that the typical individual who suffers a traumatic brain injury will personally cover up to 65% of costs even after government and private health insurance support? (1)
Trauma insurance claims
It is important to look at all factors when considering the sum insured for trauma cover before considering affordability.
When considering the extra costs associated with serious trauma insurance claims, it is important to consider:
- How much you'd need to cover the costs of quality treatment, ongoing care and rehabilitation.
- If your partner or spouse needs to become their primary carer and what costs or lost income is involved.
- How much you'd need to buy supportive equipment and make any modifications to your house, transport and to make life easier.
Some of these may be one-off costs and others may be ongoing costs.
Comparing trauma insurance quotes
When it comes to serious traumatic events, the extra cost you may be faced with depends on the type of injury or illness you have, which can vary significantly. So before you compare trauma insurance quotes, determine how much you may need first. Also, rather than using a trauma insurance calculator, please contact an xLife adviser, we can help you determine the appropriate level of cover and also find the right trauma policy for you.
References:
1. The cost of traumatic SCI and BI in Australia, June 2009.
Source: CommInsure 2011
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February 2011
