The hidden costs of illness and injury

Recovering after serious injury or illness can be stressful both emotionally and financially. Taking time out of work to focus on rehabilitation can mean losing income just at the time medical bills start piling up.

While most Australians hold some kind of insurance coverage to protect themselves against lost income or sudden medical expenses, often the full cost of care exceeds their expectations, due to several ‘hidden costs’.

As a result, many Australians don’t hold enough coverage. Reassessing your policy settings could help you avoid financial strain in the event of illness or injury.

The true cost of care

The cost of treating serious injury or illness can be significant. According to Zurich’s The Cost of Care report, the average lifetime cost associated with a heart attack, for example, is $95,728.¹

For prostate cancer, average lifetime costs are $42,130², while breast cancer attracts a similar financial burden of $41,260.³

Although some of these expenses may be covered by Australia’s public health system, not every cost will be accounted for.

In the case of heart attack, 69% of survivors who require a coronary artery bypass graft incur out-of-pocket costs.⁴

For some treatments, the likelihood of paying out-of-pocket is significantly higher. As many as 90% of Australians requiring a prostatectomy to remove their cancer will end up needing to pay part of the cost. ⁵

In addition to these direct treatment costs are additional indirect expenses. Patients with children may need to pay for additional childcare while they recover, and patients in smaller towns may need to travel and book hotels in order to be near their practitioners.

In some cases, patients may even need to take time out of work in order to recuperate, potentially costing them their income and super for a period of time. These ‘hidden’ costs are easy to overlook – fortunately, they can also be easy to overcome.

Reimagining your insurance

Many Australians already hold income protection and private health insurance, both of which are extremely useful in the event of illness or injury.

However, when selecting your level of cover these hidden costs may not be factored in, and the policies chosen may not be enough to cover the full costs of care.

That’s why it’s so important to regularly review your insurance coverage and research not only your own health risks, but the potential costs associated with treating illnesses or injuries you’re vulnerable to.

By accounting for these hidden costs when reviewing your next insurance renewal – or incorporating them before you apply for a new policy – you’ll be protecting yourself and your family from the hidden costs of care.

How to buy insurance from Zurich

There are two ways to buy insurance from Zurich.

If you’re unsure about the type and level of insurance coverage you need, a financial adviser can help you evaluate your needs and structure your insurance appropriately.

If you know exactly what you need, you can apply for simple life and income protection products directly with Zurich Ezicover. It’s easy to apply online. Get an online quote.

 

¹ Zurich, The Cost of Care Volume 2, p. 45
² Zurich, The Cost of Care Volume 2, p. 15
³ Zurich, The Cost of Care Volume 2, p. 18
⁴ Zurich, The Cost of Care Volume 2, p. 42
⁵ Zurich, The Cost of Care Volume 2, p. 16