Trauma Insurance

If you experience a traumatic event, your primary focus is recovery. Trauma insurance can help relieve your financial worries and allow you to do this.

What is trauma cover? Trauma cover pays an agreed lump sum if you suffer a serious illness or injury that is covered in the plan you take out. The lump-sum payment can help you make the adjustments  to your lifestyle that you may want or need after suffering a traumatic event.

Why would I need it? Nobody likes to think about the possibility of suffering a serious illness or injury, but you can make plans to help support yourself should the unexpected happen. Trauma cover can provide you with some comfort, knowing that if something does happen you’ll have money to help you recover. As advances in medicine and technology continue, a number of illnesses are being picked up earlier than they previously would have. This means, however, that more people are both suffering from but surviving these events in comparison to the past. A trauma insurance plan can assist with their recovery and the impact of their illness on their lives.

Won’t my private health insurance cover me? Private health insurance can help you pay for a certain amount of hospital expenses, medical treatments and some rehabilitation expenses, depending on the extras cover you chose. However, if you were to suffer a major medical crisis, there are a lot of other expenses that you may have to pay for as well as ongoing treatment needs such as rehabilitation equipment, specialist therapy etc. As you may be unable to work for a period of time and may suffer from financial hardship, you may be unable to cover these extra expenses.

What if I just risk it? Many people decide not to take out insurance, because they believe ‘it’s too expensive’ or ‘it won’t happen to me’. Before making a decision it’s worthwhile having a look at some of the most common medical ailments suffered by Australians:

– In 2016 it’s estimated that one in two Australian men and one in three Australian women were diagnosed with cancer before they turned 85.1

– Every 10 minutes someone in Australia suffers a stroke. Almost 440,000 Australians now live with the effects of stroke and this number is predicted to rise rapidly. By 2032 it will reach over 700,000.2

– Cardiovascular disease affects one in six Australians and two out of three families. Every 12 minutes, an Australian dies from cardiovascular disease – that’s 125 people every day.3

– Diabetes is the fastest growing chronic condition in Australia affecting around 1.7 million people. An estimated 280 Australians are diagnosed every day. Alarmingly over 100,000 Australians developed diabetes in 2015.4 Can I take out trauma cover if I’m not working? Yes, because the payment of any claim is based on you suffering one of the trauma conditions listed in the plan, rather than your ability to work at the time of taking out the policy.

What conditions will I be covered for? You should check the relevant product disclosure statement (PDS) to see what conditions you’re covered for. Trauma cover will normally include the most common trauma conditions like cancer, stroke, heart attack and coronary artery surgery. Talk to your financial adviser about the different eligibility criteria required across the industry. This will help you understand when you can make a claim.

I already have total and permanent disablement (TPD) cover. How is trauma cover different? TPD and trauma cover are both living insurances. The money is paid to you in the event of suffering a serious disability or trauma event. TPD cover pays claims when you’re totally and permanently disabled—mostly this means you’re able to lodge a TPD claim when you suffer an illness or injury that has permanently disabled you and it’s likely that you’ll never return to work. Traditionally it also takes a longer period to receive your TPD claim. Many insurers have a six-month waiting period.

Trauma cover provides cover for major traumatic events like a heart attack, cancer, stroke and coronary bypass surgery. The cover is designed to help you deal financially with your trauma condition, focus on your recovery and return to everyday life. In 2015… AMP paid 420 trauma claims, with the top four causes of trauma claim payments including breast cancer, heart disease, heart attack and prostate cancer. The average age of customers who made a trauma claim was 53 years old, with average payouts totalling around $223,331.5 How much cover do I need? Talk to your financial adviser for an assessment of your wealth protection needs. You might want to think about an amount that will cover you for any medical costs, ongoing care needs, along with any other costs of day-to-day life.

Am I covered through my employer’s super fund? Generally, trauma cover is not available through your super.

How much will it cost? Your insurance premium will be based on a range of factors such as your age, smoking status, gender, health and the amount of cover you choose. Your financial adviser will develop a plan to suit your budget.

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