Trauma Insurance Policy
Trauma insurance policy is also known as Crisis Insurance, Critical Illness Insurance, Recovery Protection Insurance, and Medical Catastrophe Insurance. It is designed to pay a tax free lump sum in the event of a diagnosed traumatic condition such as cancer, stroke and heart attack. Generally you can have up to 59 conditions plus death cover and Total and Permanent Disability (TPD).
Why do I need Trauma Insurance Policy?
We all know someone who has had a traumatic event such as cancer, stroke or heart attack. No one is really immune and the financial impact on the life insured or their family could be great especially if there is a lot of out of pocket expenses.
Estimated number of new cancer cases diagnosed in 2017
72,169 males +
Estimated number of deaths from cancer in 2017
27,076 males +
Chance of surviving at least 5 years (2009–2013)
People living with cancer at the end of 2012
(diagnosed in the 5 year period 2008 to 2012)
Reasons for Trauma Insurance Policy?
- Costs of immediate care – i.e. alternative or more specialised treatment in Australia or overseas outside the scope of health insurance cover.
- Employment – will you be capable or will you want to return to work immediately after recovery or spend time focusing on your health.
- Ongoing Costs – how will your condition affect increased cost of living – rehabilitation equipment or specialised care.
- Housing and Transport – would you have to modify your home or purchase a specially modified car.
- Lifestyle Changes – as a result of your traumatic and emotional crisis, would you want extra funds to go on an extended holiday or purchase a holiday home
- Debt Cancellation – would you want to pay out your mortgage.
Trauma Buy Back Feature
A new Benefit in Australia allows you to purchase trauma cover again in the event of a traumatic claim and payout. Generally there would be an exclusion or related exclusion for the event which you just claimed. Each company is different so it would be beneficial to review what suits you best