What is Trauma Insurance?
Trauma insurance pays you a lump sum on the diagnosis or occurrence of one of a list of specified injuries and illnesses, including heart attack, cancer and stroke.
Benefits of Trauma Insurance
It provides you with the choice and flexibility to change your lifestyle, pay for out of pocket medical expenses, fund modifications to your home, take a holiday, pay for home help or childcare, reduce your working hours, pay off the mortgage or whatever will make your life a little easier or happier.
Who can have Trauma Insurance?
You do not need necessarily be in the paid workforce to take out trauma insurance, so it is ideal for stay-at-home mums and dads, people working as volunteers for charities and people taking time out to study.
In fact anybody and everybody can avail Trauma Insurance to compensate the loss of income that one may suffer due to suffering the specified traumatic conditions.
What is covered?
Trauma insurance policies often provide coverage from 27 to 48 illnesses and conditions, and can be taken out as a Standalone policy or incorporated (Acelerated) into Life Cover – which is slightly cheaper.
What isn’t covered?
The Insurance company will not pay any claim if a life assured, or child covered under the optional children’s benefit, suffers one of the covered conditions as a direct or indirect result of:
1. Self-inflicted harm including attempted suicide.
2. Participating in criminal activity.
3. Harm to a child covered under the optional children’s benefit which has been directly or indirectly caused by you, the child’s parents or guardians.
Things to consider for Trauma Insurance
For a 35 year old there is a 20% chance of suffering from any critical sickness before the age of 65 years. The majority of critical illness claims are more related to Cancer, Heart Attack, Stroke, Coronary Bypass. The Big Four Trauma Insurance Claims are cancer, coronary bypass, stroke and heart attack.
Modern Medical Treatment will ensure you will probably survive a reasonable period after these illnesses. Therefore, you are likely to still have a need for insurance to protect your lifestyle
50% of cancer patients and 80% of the first heart attack patients are still alive after the first year.