Trauma insurance, also known as major illness insurance or recovery insurance, can help provide financial peace of mind in the event of sickness or injury. Traumatic events negatively impact the policy holder’s primary income source when they cannot work.
As part of a suite of financial products, securing your future with trauma and income protection level premiums is necessary to fill potential future gaps in your income. You can get the income protection you need through trauma cover or protection insurance income, so if you’re unable to work due to sickness or injury, you will have protection. You can also discuss income protection tax-deductible benefits with an expert.
When you ask for a trauma insurance quote from an insurance company, don’t forget to discuss the other insurance products for which you may be eligible. These products can include income protection insurance, life insurance, and an accident benefit option.
The more life insurance products and similar policies you have to protect yourself later in life, the better off your future financial situation will be. So, for example, if you’re unable to work for any reason due to accidental injury or disease, at least you will have less financial stress knowing you have income protection.
Trauma insurance can help provide financial peace of mind in the event of a major illness that leaves you unable to work. There is always uncertainty about when or whether you will be unable to work due to unforeseen circumstances.
For example, you may be the victim of a work incident or become ill due to unfortunate or pre-existing health issues. In that case, you would want to know that you will receive a monthly benefit to help manage treatment costs and living expenses.
Trauma cover (also referred to as crisis recovery trauma), provides a lump sum payment on the diagnosis of serious medical conditions. Benefits vary widely according to the situation, with generally fewer benefits available at lower level premiums.
Trauma cover can apply to individuals between the ages of 17 and 59, with full cover confirmed extending up to 70 years of age.
Trauma cover is highly recommended if you are already dealing with large existing debts, such as a mortgage, and are still at pre-retirement age. It also may be worth getting trauma cover as a form of income protection if you do not qualify for income protection insurance.
Trauma life insurance gives you peace of mind, knowing that all your family’s savings will not all be spent on covering costly medical treatment.
A major illness often affects family finances just as seriously as death, and even more so when you are faced with the possibility of ongoing medical costs. This is when you need a substitute for income protection should you not qualify for this type of insurance.
However, trauma cover does not issue a trauma benefit payment for an intentional self-inflicted act, so be aware of this fact before signing any product disclosure statement. But before you can apply for trauma cover, you will need to answer specific health assessment criteria with a medical practitioner and provide them with a medical history to determine if this is your best course of action.
Trauma cover is also known as major illness insurance or as recovery insurance. You will receive a lump sum payout should you receive a critical illness or severe injury diagnosis. These diagnoses cover physical injuries rather than mental health diseases and include severe head injuries, strokes, heart problems, and cancer. Reading the product disclosure statement will give you a better idea of what cover to expect from this type of insurance product as they differ between insurers. After applying for this product, there may be a waiting period before you can submit a trauma claim. However, life insurers can provide you with more details about this type of policy and whether it suits your financial needs and individual circumstances.
Once approved, the waiting period is over, and if you are unfortunate to receive confirmation of a specific diagnosis, you can submit a trauma claim. This trauma benefit will pay out after diagnosis confirmation (not if or when there is a death from the condition). Once confirmed, the life insurer will provide you and your family with a lump sum of cash.
You can then use that payment for:
Always be upfront about your individual circumstances when applying for trauma cover or life insurance products. These details can affect your claim. The more honest and detailed you are about your medical history, the more likely you are to be successful when you submit an application and a trauma claim.
Details that insurers look for when applying for trauma cover and life insurance include:
Should your application not include questions about sickness and injury, the chances are that the medical definitions will be less distinct, and the policy will likely have more exclusions than ones that require a history of your health.
When applying for trauma cover, life insurance, or income protection insurance, the insurer will use this information to decide your application.
Their decisions have specific implications such as:
Share truthful information, and your claim will be met but missing, or incorrect information can lead to your trauma claim being declined.
You may or may not qualify for trauma cover, so you should consider other insurance products such as income protection in case of sickness or injury. You simply do not know if some trauma events can render you unable to work or pay for personal or business expenses.
In such an event, if you have an income protection policy or life insurance, at least you know that you can provide for your family as the life insured. And like trauma cover, you can discuss the waiting period associated with these policies.
You can also discuss whether a policy is tax-deductible, if premiums are pre-tax income or post-tax income, or if the benefit payment attracts a tax deduction.
You can discover the answers to these and other questions from an authorised representative who will provide you with general advice and expert financial information on how much trauma insurance you may need. These experts will also offer their services as dedicated claims consultants to streamline the process when you make a claim.
The number and types of benefits available vary widely by policy and provider, with cheaper policies generally providing fewer benefits.
You should remember that life TPD and trauma insurance is just the over-reaching category and that insurers have their criteria. What is acceptable for one insurer may just be insufficient for the other. So before signing on the dotted line, talk to insurance experts here at Wealth Smart.
The most common claims for these policies include heart attack, coronary bypass, stroke, and cancer. Other conditions covered by Trauma Insurance include paraplegia, major head trauma, blindness, severe/major burns, and many more.
Insurers offer Trauma Cover alone or with Life Insurance.
While most new Trauma Insurance policies will cover you for a wide range of illnesses, note that policies from different providers may differ in how they define each sickness. Therefore, we recommend you read the insurer’s product disclosure document (PDS) in full to check which conditions are excluded and the degree to which each is covered.
A lump-sum payment is the amount of money paid out by an insurance provider after a claim has been accepted. The lump sum occurs in one full payment and not in instalments.
A replacement policy is a policy that is offered or issued by an insurer on its policy forms. A replacement policy takes effect upon the expiration or cancellation of a Removed Policy.
Trauma Insurance can be the best way to ensure you and your family avoid short to medium-term financial hardship in the event of an accident or illness. Wealth Smart makes finding the best Trauma Insurance quote as easy as possible, helping you achieve peace of mind, whatever the future holds. When you compare quotes from life and trauma insurance providers, you can see what each policy means as an investment.
Finding a Trauma Insurance policy can be time-consuming given the many flexible cover options available. Wealth Smart makes it easy by helping you find the right Trauma Insurance policy for you and your unique circumstances. Our help saves you time and legwork, giving you the peace of mind that comes with knowing you and your family will continue to be looked after, no matter what happens. So, before you take our life TPD trauma insurance cover, spare a few moments to talk to us, get to know our general nature, and meet our friendly insurance brokers who make the entire process hassle-free. We walk every step with you and help you have the best life and trauma insurance you deserve and need.
Get trauma insurance quotes online, compare trauma insurance quotes, and get the complete insurance process managed by experts at Wealth Smart. Call us at 1800 765 100.