Trauma insurance, or recovery insurance, provides you with a lump sum on the diagnosis or occurrence of one of a list of serious medical conditions and procedures. Each insurance company maintains their own list but they generally include serious medical conditions such as cancer, heart attack or stroke.
As people are becoming more aware of the statistical chances of suffering a critical illness condition or major trauma, the need for trauma insurance is becoming more of a priority. A trauma insurance benefit is paid when you are diagnosed with a “qualifying condition” as set out in the insurance policy. It is generally paid as a lump sum when you are diagnosed with a specified illness and can be used to cover lost income, medical and rehabilitation costs, and other varying expenses such as mortgage repayments. A major trauma can affect you and your family’s physical and emotional wellbeing and a lump sum can help towards easing the stress during what is most likely to be a stressful time.
A qualifying condition for trauma insurance varies between providers.
The more common medical conditions are:
• Heart attack
• Major head trauma
• Open heart surgery
Trauma insurance benefits are paid when the insurer receives a certificate from a qualified medical professional.
Trauma insurance is not generally offered within superannuation.
Premiums vary depending on the level of cover you require, your age and your medical history.
Trauma insurance is available if you are not currently employed, unlike some other forms of insurance.
Do you need trauma insurance?
If you had a mild heart attack, then became well enough to return to work after three months (once you had fully recovered), you may not be able to claim under your term life, total and permanent disablement or income protection policies (dependent on waiting periods) as your illness was not sufficiently long-lasting. Trauma insurance can help to fill the gap between term life, total and permanent disablement, and income protection insurance, and encompass scenarios not covered by other policies. If you have a family history of serious illness, or even a high risk/high stress job, trauma insurance may benefit you.
Give us a call on 07 3812 7122 to book an appointment.