Trauma Insurance isn’t really necessary, is it?

Trauma InsuranceTake a moment to think about this: what would you do if you were diagnosed with cancer today? What would you do if you needed to be off work for a year or two during your recovery because of chemo and stress? How would you pay for your treatment as well as your everyday living expenses?

I agree that this is a very uncomfortable topic to talk about, but when you consider that 1 in 4 women and 1 in 3 men risk developing cancer before the age of 75, it is a topic that needs some thought. (Statistics from Cancer Council Australia)

Although Trauma Insurance (also known as Critical Illness Insurance) will not make your illness disappear, it is designed to help you with your medical and rehabilitation costs, and employment changes as a result of your trauma.

I have Total and Permanent Disability Insurance, why should I get Trauma Insurance?

Total and Permanent Disability Insurance (TPD) and Trauma Insurance are similar in that both are paid out in a lump-sum. That being said, your TPD benefit will only be paid out if it is determined that you are unable to work again in your usual employment due to illness or injury.

Trauma Insurance differs as the benefit is paid out when you are diagnosed with an illness which will prevent you from working for a period of time.

Why do I need Trauma Insurance?

As mentioned above, current statistics show that a quarter of women and a third of men will be diagnosed with cancer at some stage in their lifetime. However, advances in medical technology mean that survival rates are improving. This is where Trauma Insurance comes into its own as the lump-sum payment will give you financial security while you are recover.

One of the main benefits of Trauma Insurance is that you can spend the lump-sum payment in any way you choose. The payment is typically used to cover medical treatment, rehabilitation expenses, existing debt, and living costs.

What does a Trauma Insurance policy cover?

Trauma Insurance policies will vary according to your provider and available budget. On a very The majority of insurance providers divide their cover options between Standard Cover and Plus Cover.

Standard Cover is the lower cost option and provides benefits for the most common critical conditions. This cover usually comes with fewer add-ons and benefits.

The Plus Cover provides more extensive coverage for a larger number of critical conditions, but this does come at a price.

When you are looking at getting Trauma Insurance cover, look out for extras that provide you with more benefits at claim time. Examples of these benefits include: support services such as counseling, financial planning support and advice, benefits that increase over time, and partial payments for less serious illnesses and conditions.

What doesn’t a Trauma Insurance policy cover?

When getting a Trauma Insurance policy, make sure you read the list of exclusions very carefully. Although the exclusions will vary between providers, below is a list of common claims that are denied:

  • claims that are made outside of the scope of the policy,
  • pre-existing conditions that have not been declared,
  • claims for a condition not covered by the policy, and
  • suicide within 13 months of the cover’s commencement.

How can we help you?

We have helped and advised many of our clients on the best and most suitable policies and can do the same for you. Get in touch today to discuss your options.

The information in this article does not constitute legal or financial advice. If you would like to discuss any of the above in greater detail, please contact your local Axis adviser.

Image Credit: Kuchingboy CC