So what could you rely on?
Deferring your financial goals to cover the cost of health care, recovery and time off work mean drawing down your personal savings and investments. That’s a last resort and isn’t a great outcome for anyone.
Years of hard work and discipline go into creating a long-term financial plan – and this can be all lost if you need to “crack open the piggy bank” to pay medical bills and cover loss of income. This could destroy long-term plans, such as paying off a mortgage or sending children to private school.
Doesn't my employer cover me?
Many employer benefits cover only work related injuries. According to ABS, of those people who experienced a work-related injury in the last 12 months, only 57% received financial assistance and only 55% of those received workers compensation. Further, with limits on the total payouts and strict criteria on claims, employer cover can leave you and your family at risk.
What about Health Insurance?
Medical and private health insurance do not cover all the costs. Health cover may be limited in the choice and flexibility of treatments. It often does not cover hospital and treatment expenses in full, and some conditions aren’t covered at all. Out of pocket expenses such as the cost of a carer and rehabilitation expenses often aren’t covered, nor is the income lost from a period out of work.
Will the Government help?
Government allowances and benefits also do not go very far in covering you against accident or sudden illness. The maximum payment for any one benefit is $499 per fortnight, but most benefits are subject to income and assets tests, so the maximum benefit may be reduced. (10)