Trauma InsuranceHelping you Recover
When you suffer a serious illness, the impact on your life is likely to be enormous. The financial impact can also be devastating if you’re not adequately prepared for it by having some form of trauma or critical illness cover.
Trauma insurance provides you with a lump sum payment if you suffer an insured major medical trauma. The actual events covered vary between insurers, but some of the most common ones include:
Each of the above insured events is usually medically defined within the policy, and the definition must be satisfied to be eligible for a benefit payment. For example, it is not sufficient to simply be diagnosed as suffering from cancer, the type and severity of the cancer must meet the definition within the policy.
Helping you recover
What this means to you
The payment of a lump sum from trauma insurance is designed to help you and your family obtain the financial support you need to get through a major illness without the financial upheaval. This money can help you:
Insurance policies will often vary in their features and benefits, so you should work with us to choose a policy that suits your needs and your budget.
Jenny and Paul both were both working full-time and earning a combined income of $160,000. With no children, they were working hard to build their nest egg and pay down their significant mortgage.
When Paul was diagnosed with a potentially life-threatening heart condition, his doctor told him he urgently needed surgery. He also faced the prospect of up to six months off work.
If Paul didn’t have income protection, the couple would have faced the prospect of surviving on Jenny’s income alone. They would also have to pay Paul’s out-of-pocket medical expenses on top of the mortgage repayments and everyday bills.
Fortunately, Jenny and Paul had spoken to their financial adviser about protecting their lifestyle in the event of sickness or injury. As a result, they had both taken out income protection and trauma insurance.
Because he was unable to work, Paul’s income protection paid him a monthly benefit equivalent to 75% of his regular salary until he returned to work. Paul’s heart condition was also an insurable event under his trauma insurance — meaning the couple received a lump sum of $150,000.
This money helped the couple with their mortgage repayments, and pay all Paul’s hospital bills. It also allowed Jenny to take some unpaid leave to look after Paul at home.
What are the chances?
Cardiovascular disease (CVD) is the leading cause of death in Australia, with 45,600 deaths attributed to CVD in Australia in 2011. Cardiovascular disease kills one Australian every 12 minutes.
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Disclaimer: Please note that this information is of a general nature only and have been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.