Things To Consider

We all know how dangerous racing and any forms of cycling can be, so we want people to be aware that they have options, outside of the cover being offered by Cycling Australia (should they be members), which will provide greater financial security should they injure themselves. 

In fact the cover that we are suggesting is not limited to injuries sustained while cycling solely. Cover would be worldwide, 24-7 for both sickness and accident, regardless of the circumstances.

Please be aware that the cover being offered by Cycling Australia only covers people while training or competing on a bicycle. If you were to injure yourself whilst doing any other activity, you are not covered.

 

Loss of Income

The policy being offered by Cycling Australia only provides a maximum monthly benefit of $600/wk. This would be equivalent to an annual income of $39,000.
As I have said previously, the policy also only covers you if the accident occurred whilst on a bicycle and is only payable for 1 year.
If people were to suffer from an accident or illness which saw them out of work for an extended period of time, how long would they be able to survive without the ability to earn an income?

In most cases people have sick leave that they can draw on and maybe savings in the bank, but there obviously still comes a time when these run out.
Most people will insure their car but have never considered insuring their income, which in most cases is their greatest asset. If you are earning say $70,000 a year, were 25 years of age and had 45+ years until retirement, this asset would be worth well over $3,000,000.

Some insurers will also cover for SPECIFIED INJURIES. These are not dependent on a waiting period and are therefore paid as soon as the injury is sustained.
Dependent on the benefit period you have selected, should you be out of work for longer than the payment period, you will continue to be paid until which time you are able to return to work.

In the table below I have provided an example of the automatic payments paid should you suffer one of the specified injuries (in this case we have assumed an annual income of $70,000pa):

	Specific Injury		Payment Period	Payment in $
	Paralysis		60 months*	$262,500
	Loss of thumb or index finger of the same hand		6 months	$26,250
	Fracture of the thigh or pelvis		3 months	$13,125
	Fracture of the leg (Between knee and foot) or knee cap		2 months	$8,750
	Fracture of the upper arm including the elbow and shoulder bone		2 months	$8,750
	Fracture of the skull (except bones of the nose and face)		2 months	$8,750
	Fracture of the lower arm (including the wrist but excluding the elbow, hand and fingers)		1 month	$4,375
	Fracture of the collarbone, jaw or vertebrae		1 month	$4,375

* If you select a 2 year benefit period, this payment period is reduced to 24 months

 

Death and Permanent Injury

People may already have Life and Total and Permanent Disability(TPD) cover attached to their employer Superannuation Fund.
In most cases the level of cover offered is a multiple of their income and years to retirement. When considering appropriate levels of both Life and TPD cover, things like covering/eliminating debt, paying for final expenses (funerals etc) and providing an income to a surviving spouse or partner and children (if any) need to be considered.
When you are single and have no children, the level of cover you have via your Super may in some cases be sufficient but it is always best to complete a detailed "Needs Analysis" to be completely sure.
I think most people would agree that suffering an event that deemed you to be Totally and Permanently disabled would in most cases be worst than death itself. The cover being offered by Cycling Australia is for $100,000 only. How someone could live for the rest of their life on $100,000 if this was to happen would obviously be very difficult (if not impossible).

If this is something that you think you may be interested in discussing further, please contact us today.

For those who are members, the main benefits offered under the Personal Accident Policy by Cycling Australia are listed below:-

1) DEATH & PERMANENT INJURIES
A lump sum benefit is payable in the event of Death or a Permanent Disability. The scale of benefits is defined in the policy. The Death Benefit for members is $50,000 and $75,000 for volunteers. (other than anyone under 18 and over 65 years old $10,000 maximum). The Paraplegia and Quadriplegia benefit is $100,000.

2) NON-MEDICARE MEDICAL EXPENSES
This covers insured persons for NON-MEDICARE medical expenses. The policy is for reimbursement only. That is, the member must pay the account and then claim reimbursement under this insurance cover.
NOTE Only NON-MEDICARE items are claimable (i.e. the “Medicare gap” is not claimable due to government legislation).
The most common “Non-Medicare” expenses include:-
• Private Hospital Bed & Theatre Fees • Dental • Ambulance • Chiropractic • Physiotherapy • Osteopathy
Medical expenses that are covered by Medicare (i.e. not covered by this sports injury policy) include:-
• Doctor’s Fees • Surgeon’s Fees • Anaesthetist’s Fees • X-rays
BENEFIT
Reimbursement up to 85% of Non-Medicare medical costs, up to a maximum of $5,000 per injury.
EXCESS
$50 excess applies to each injury. $nil excess applies if you are a member of a Private Health Fund.
CONDITIONS
(i) If a member belongs to a private health fund, they must claim from that fund first.
(ii) Non-Medicare medical costs are only reimbursed by this policy if incurred within 52 weeks from the date of injury.

3) LOSS OF INCOME
This benefit provides cover for insured persons who work 15 hours or more per week who are disabled from an injury relating to events covered and are unable to work.
BENEFIT
80% of your net weekly income up to a maximum of $600 per week.
EXCESS
There is no benefit claimable for the first 7 days that you are away from work as a result of injury.
BENEFIT PERIOD
52 weeks from the date of injury.

4) STUDENT HELP WEEKLY BENEFIT
Reimburses 100% of actual costs up to a maximum of $500 per week for costs actually incurred for tutoring to assist the full time student.
EXCESS
7 days.
BENEFIT PERIOD
52 weeks from the date of injury.