Sometimes life surprises us with very serious health issues. Serious illness can make it hard, if not impossible to work. Trauma insurance or trauma cover is designed to help you deal with those events, so you can focus on your health and not worry about your financial life.
What is Trauma insurance?
Trauma insurance is designed to provide you with a lump sum benefit if you suffer a severe specific injury or illness outlined by the policy. Typical things covered include heart attack, cancer, stroke, blindness, severe burns, blindness, loss of speech or deafness. It is also sometimes called Trauma cover. The Trauma Insurance Policy outlines the terms of your cover and it’s important that you understand what you are buying so you have real peace of mind. Trauma insurance can be beneficial to employees, the self-employed people, small business owners and professionals.
What are the typical features of a Trauma insurance policy?
- Most Trauma insurance policies will pay you a lump sum, however some pay out in instalments to the maximum amount.
- Trauma insurance can be used to provide you with funds to live, pay for medical costs, pay for any adjustments to your home you might need to make as a result of the illness or repay debt . The money is yours to use as you wish to.
- Trauma cover can also be used to top up the 25% of your income not covered via Income Protection insurance.
- Trauma insurance can only be held outside of superannuation, unless it was purchased before July 2014. A rule change meant that it could no longer be paid by your superfund. If you have an older superannuation fund you may have trauma cover as a part of it. A financial planner can help you investigate your insurance cover if you are unsure.
- Many different insurance providers offer Trauma insurance and their policies are often very different. It’s important you understand what your coverage includes and excludes.
- You need to consider your personal situation to ensure the right kind of cover is available for you.
- Trauma can provide a full or partial payment depending on your medical condition, this can see you attain funds faster in some situations to commence treatment as quickly as possible.
- You might also consider how Trauma insurance fits in with other kinds of insurance you might have like Income Protection insurance and Total and Permanent Disability Insurance. If in doubt, seek advice.
How do you determine if Trauma insurance is appropriate for you?
Seeking advice can help you understand how Trauma insurance can provide for you in the event of serious illness or injury. Not all contracts are the same and medical definitions change over time.
Financial planning advice can help you work out:
- What kind of insurance cover you need – including trauma insurance.
- The kinds of illness or injury that you’ll be covered for.
- If your premiums should be stepped or level.
- Which trauma cover insurance provider is appropriate for you.
- How re-instatement options work to maximise your benefits in the future.
- When to review your cover, because life changes over time and your insurance should reflect your changing needs and lifestyle.
- What you need to tell the insurer from a medical health perspective when applying for, renewing or changing a trauma policy.
To make an appointment to speak with Luke, please call Envision Financial Services on 02 6260 4749 or contact us here. We are here to answer your questions, help education you on the benefits of cover and to prevent you paying for something that is inappropriate for you.