Trauma Insurance – How It Can Help
March 13, 2015

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How Trauma Insurance Can Help if Your Life Was Dramatically Changed

We all like to think we’re invincible. And as a vibrant, healthy adult it’s hard to think anything bad could ever happen to you. If you’re a mother or father, it’s even harder to think about anything bad happening to one of your kids.

But take a look around. We probably all know someone who has suffered a difficult illness. In fact, in the Actuaries magazine stated that: “despite the fact that 70% of Australians know someone who has had a traumatic event, only 8% of Australians actually own Trauma Insurance”.

The financial consequences of critical illness can be devastating, both emotionally and financially. What happens if you have to stop working to receive care? Or what happens if the income stalls because you want to be there for your child’s medical treatment? Gone are your annual holidays, luxuries, and everyday necessities. In fact, you may even have to sell the house to cover the ballooning costs of medical treatment.

If your health – or that of your child – ailed, you want to be prepared. You want to know that you and your family are going to be taken care of. Trauma Insurance can help provide serious financial relief if you were diagnosed with a serious medical condition.

“Despite the fact that 70% of Australians know someone who has had a traumatic event, only 8% of Australians actually own Trauma Insurance.”

6 Benefits

A few things determine which benefits a Trauma Insurance policyholder will receive. The payout amount is calculated by the policy’s design. It is important to note that only health conditions diagnosed by a qualified physician and listed in the policy will be covered. Though benefits vary widely according to that medical condition, here are 6 advantages of Trauma Insurance:

1. A policy for everyone

It is a policy valid for anyone and everyone, covering individuals between the ages of 17 and 59.

2. You can enjoy the benefits

Cover is paid out when the diagnosis is made, not when (or if) there is a death as a result of the medical condition. This means you can directly benefit from the cover while you’re under treatment and recuperating.

3. It is flexible

Trauma Insurance can be provided in conjunction with your Life Insurance coverage, or purchased by itself as a stand-alone policy.

Depending on the policy, a policyholder could receive financial help whether they are diagnosed with a heart problem, cancer, a stroke, or something equally unexpected.

And as outlined at #2, unlike Life Cover, the benefits of Trauma Insurance are paid directly to the policyholder while they are alive and not their beneficiaries.

4. You are in control

Many Trauma Insurance policies pay their policyholders a lump sum. This enables you to spend the money in any way you feel is necessary: relief of financial pressure, including ongoing bills; lost wages from not working; and other debts (such as a mortgage).

Once paid, it is not regulated strictly to medical costs. This type of insurance payout has helped many people diagnosed with a serious illness.

5. Extensive coverage

This type of insurance generally covers more common claims like heart attack, stroke and cancer. But other conditions, including serious burns, major head trauma and even paraplegia, are also covered.

6. Reinstatement options are possible

Once a policyholder has received their payout from Trauma Insurance, the policy is no longer valid. But there are certain situations where a person can purchase a reinstatement option when getting the original policy. With the reinstatement option the Trauma Insurance policy can be completely reinstated within a year.

Find out more about Trauma Insurance here.

If you are thinking about taking out a Trauma Insurance policy, we recommend you obtain advice from a qualified adviser. In the event the unthinkable happens, we can help find the right policy for you and your unique circumstances. Contact us today.

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