Trauma Insurance – can you afford not to have it?

What is Trauma insurance?

Trauma insurance (also known as Critical Illness insurance) provides a lump sum upon the diagnosis of a serious medical condition. Whilst many of us may have private health insurance, the full cost of seeking specialist treatment for a serious illness is usually not covered by most health funds, with various treatments and rehabilitation programs often not covered at all. Even if you have no private health insurance and are just relying on Medicare, having trauma insurance in place can give you choices of doctor and treatment you otherwise may not have.

The number of conditions covered varies widely from policy to policy, with cheaper policies often offering far fewer benefits. The most common claims under these policies are for cancer, heart attack, coronary bypass and stroke, although other conditions can also be covered.

List of common Trauma conditions that can be covered

Alzheimer’s Disease

Aplastic Anaemia Blindness

Burns – Server/Major

Cancer

Cardiomyopathy

Coma

Coronary Artery Angio

Coronary Bypass Surgery

Deafness

Dementia

Diplegia

Encephalitis

Heart Attack

Heart Valve Surgery

Hemiplegia

HIV – Occupational Acquired

Kidney Failure – Chronic

Liver Disease – Chronic

Loss of Independence Existence

Loss of Limbs or Eye

Loss of Speech

Lung Disease – Chronic

Major Head Trauma

Major Organ Transplant

Motor Neurone Disease

Multiple Sclerosis

Paraplegia

Parkinson’s Disease

Pulmonary Hypertension

Quadriplegia

Stroke

Terminal Illness

Life Cover – Death Benefit

Total & Permanent Disability

Aortic Surgery

Out of Hospital Cardiac Arrest

Benign Brain Tumor

HIV – Accidental Infection

You don’t have to die…

The benefit is paid when diagnosis is confirmed – not when you die of the condition. It provides you and your family with a lump sum to use when needed the most for medical care, or to pay the mortgage and other debts to relieve financial pressure.

Why do I need Trauma insurance?

If you have a family, debts and are at pre-retirement age, this cover may be the most important policy you have in place. A critical illness can be just as damaging to a family’s finances as a death, and more so if medical bills start to mount up as a result of a long lasting illness.

While recovery is certainly possible from the illnesses covered by trauma insurance, in most cases to qualify for a benefit the condition needs to be severe. Also if you suffer from a condition which is not specified you will not be covered. Income protection on the other hand covers any sickness or accident-related injury causing temporary inability to work eg. stress, RSI or back injury. There is certainly room for both types of coverage, however trauma will usually be the only option for persons who are not currently working.

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Posted on April 25, 2014, in Altura Financial Planning and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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