The purpose of Trauma (Critical illness) insurance policy is to cover medical expenses in the event of serious illness or accident and to relieve the family from the stress of meeting immediate expenses.
The following table contains the types of conditions covered. It should be noted that different policies cover different conditions and may define the conditions differently:
Benign Brain Tumour
Burns – Major
Coronary Artery Angio
Coronary Bypass Surgery
Heart Valve Surgery
HIV – occupational acquired
Kidney failure – chronic
Liver disease – chronic
Loss of Independent
Loss of limbs and/or eye
Loss of Speech
Major Brain Injury
Major Organ Transplant
Motor Neurone Disease
Typically, a Trauma insurance policy will pay out the full lump sum benefit if you survive for 14 days after suffering the critical condition.
We all know of someone who has suffered the effects of cancer, heart disease or stroke. In fact, one in four women and one in three men will suffer some form of cancer in the first 75 years of life¹. Today, there is a 50% chance of a 40 year old man and a 33% chance of a 40 year old woman developing coronary heart disease². The chances of major illness striking you down are very real no matter how young or healthy you are.
1 Australian Institute of Health and Welfare, Australia’s Health, 2002, p.48.
2 National Heart Foundation Statistics, Australian Facts 2001 Highlights.
You probably know someone that has suffered a serious illness. While modern medicine can provide a good chance of recovery, the financial consequences of a serious illness can be devastating. Bills do not stop just because you are ill. A serious illness such as cancer, a stroke, heart attack or any of a number of other major illnesses can strike at any time causing physical and emotional trauma.
For those recovering from such an illness, facing a period of incapacitation or recuperation, there is often the financial burden of medical bills and expenses, the ongoing costs of rehabilitation and care, possible modifications to the home and forced early retirement. It is not helpful for the recovery phase to be concerned about how to pay mortgages, bills and other living expenses.
Few people have the necessary savings to pay all these expenses or to manage without a regular income.
Trauma insurance can offer relief by paying a lump sum in the event of a specified condition, helping to ease the financial burden on both the insured and the family.
Where Trauma insurance works is where Life insurance and Total and Permanent Disability (TPD) insurance do not apply. That is, you have not died and you are not going to be totally and permanently disabled. However, you will not be able to work for say 6 months or 2 years and need time to recover. You do not want the stress of worry about how the to pay the mortgage and bills while you are recovering. This is where Trauma lump sum insurance works best. It is a top up on what your income protection insurance can cover being only up to 75% of your salary.
When you are borrowing or you have existing debts you should consider your insurance needs for you and your family.
If you would like more information, please Contact Us.