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Financial Planning

Do you have adequate Trauma Insurance?

October 24, 2016

Cancer is unfortunately the most prevalent trauma condition in today’s times. When selecting adequate trauma insurance, medical expenses should be a significant component – but do you know the true financial cost of cancer? Rice Warner have estimated these costs below, including a reduction in income (for example, productivity and carer costs) and out-of-pocket expenses (for example, health costs and other financial costs).

Rice Warner estimated of the  cost of cancer Cancer :

  • High Care - $380,000
  • Medium High Care - $180,000
  • Medium Care - $125,000
  • Medium Budget Care - $85,000
  • Budget Care - $58,000

The cost of cancer is impacted by many unknowns at the time cover is actually applied for. There are many uncertainties in the unfortunate event of a claim.

  • The type of cancer (Melanoma sits under $20,000 while Brain Cancer sits at around $180,000)
  • The treatment adopted.
  • Coverage of costs by public health system, including the Pharmaceutical Benefits Scheme (PBS) which unfortunately, does not always cover the most appropriate drugs.
  • Distance required travelling for treatment, particularly for non-metro clients.
  • The success and duration of treatment. If the cancer is very aggressive, the medical costs may be low as the patient may not survive very long. On the other extreme, if treatment is very successful the client may only require limited intervention now, but the risk of remission, and further treatment costs, is high.
  • Medical progression - many of the recent medical enhancements have enabled treatment to control and slow the progression of cancer down, which is great for the patient, but this may further escalate treatment costs.
  • A minority of cancer patients can require treatment that is not supported by the Pharmaceutical Benefits Scheme (PBS) and the public health system. Our experience suggests that the costs of non-PBS drugs and other associated treatment can be in the order of $50,000 per year. If treatment is successful, it can be required for number of years.

As you can see the cost of cancer can be significant, not only emotionally but financially. It is important to get your Trauma Insurance right. To get a true indication of how much is enough, have a chat to Michelle Roberts, our in-house Financial Advisor. Michelle will be able to understand your individual circumstances, and then make sure you have the right amount of cover and the right policy to meet your unique needs and to ensure that your are your family are protected in the unfortunate event of diagnosis with serious illness.

Do you see the value in Trauma Insurance?
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Michelle Roberts


  • Bachelor of Business (Property Investment)
  • Advanced Diploma of Financial Services (Financial Planning)
Michelle Roberts is an Authorised Representative of Australian Unity Personal Financial Services Limited (AUFP) ABN 26 098 725 145, AFSL 234459. This information has been prepared by AUPFS. The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current laws and their interpretation. 
This information has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Because of this you should, before acting on it, consider its appropriateness, having regard to your objectives, financial situation and needs. Past performance is not an indication of future performance.