Trauma Insurance

It is very interesting how most people would never dream of living in a house without home insurance and would not drive their car without car insurance, yet protecting themselves and their families in the event of death, injury or illness takes second priority – if it’s considered at all.

Did you know that the incidence of cancer increases annually and is currently the leading cause of death in Australia, with one in two men and one in three women diagnosed with cancer before they reach age 85? How about that more than seven women die of breast cancer each day; that each year almost 3,000 men die of prostate cancer; that one Australian dies of cardiovascular disease every ten minutes, and that those who survive these, and other debilitating diseases, struggle financially and are unable to live a full and fulfilling life? Scary, isn’t it? But that’s enough doom and gloom. Instead I would like to introduce you to ‘trauma insurance’ – coverage that exists to provide you and your family with peace of mind in the event of any of these tragic events occurring.

So what is trauma insurance?

Trauma insurance is one of the most under-rated insurance products in most Australians’ insurance portfolios. It covers you from anywhere between five and 41 critical events (depending on the insurer). It is a ‘living’ insurance where benefits may be used to replace loss of income, remove debt, and pay for what can be prohibitively expensive medical care. It also provides funds for elective or alternative therapies, allows an individual the option of having extended time off work to facilitate recovery and provides the option for a loved one to forgo their income to assist with the care of a sick family member. And the best part is that the lump sum paid may be used in whichever way you please – there are no restrictions on how it must be spent.

One of the main benefits of trauma insurance is that if you are eligible to claim, the claim is paid as soon as you fall ill (often within 14-30 days), providing immediate cashflow. It’s also not dependent on whether you are able to return to work or not (unlike total and permanent disability (TPD) insurance). Although infrequently used, trauma insurance is an important supplement to other insurances, such as like income protection, which covers you for up to 75% of your income, and TPD, which can only be accessed after you have been absent from work for an uninterrupted period of at least three consecutive months as the result of an injury.

So, if you have had the foresight to insure your possessions and health, why not think about insuring your biggest asset… YOU! Take a minute to consider how your household would cope without a regular income, or what would happen to your family, home and livelihood if the main income earner fell ill or passed away. Hopefully, this will never happen, but it’s always better to prepare for the worst while hoping for the best. Make this year the year where you make your family your number one priority and give them the peace of mind of knowing that their future will always be taken care of.

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