Trauma Cover
This type of insurance pays a predetermined lump sum on diagnosis of certain serious medical conditions or events. Most companies offer two levels of cover, and the benefit is generally available either in conjunction with life insurance cover, or on its own.
The diagnosis of a serious illness is devastating in any circumstances but the burden will be far greater if your financial security is also put at risk.
FACT: Although there is a one-in-three chance of suffering from a serious illness before age 65, current survival rates mean that many patients go on to make a reasonable recovery and enjoy a good quality of life.
FACT: Historical data indicates that a person suffering from one of the four main critical illnesses (heart attack, heart disease, cancer or stroke) has a nearly 50% chance of surviving for up to 10 years beyond the critical incident.
However, in many cases this involves a reduced working capacity that necessitates significant lifestyle changes. This can mean extra costs. These can include:
- Medical treatment and hospitalisation
- Overseas travel or treatment
- Time off work with no income
- Early retirement from the workforce
- Mounting debts and mortgage repayments
- Supporting a business even though you can’t work
- A partner having to stay home to nurse you
A lump sum benefit can make a real difference in meeting these costs.
What counts as a Trauma Condition?
Each insurance firm has a different definition of what is considered a Trauma condition. The trick is knowing which firms cover what and then matching your risks and needs accordingly.
Contact an InsuranceNet Adviser for more help.