It can be tough to continue working if you are suffering from a critical disease or have sustained a serious injury. Trauma insurance can help you and your family during this difficult time by covering medical and rehabilitation expenses.
What is covered by trauma insurance?
Trauma insurance, often known as ‘critical illness insurance,’ or ‘recovery insurance,’ provides a lump sum payment if you suffer from a critical illness or significant injury. This includes cancer, heart disease, a significant brain injury, or a stroke. Mental health disorders are not covered by trauma insurance.
What is covered under a trauma insurance coverage, as well as medical standards, can vary between insurers. Read the product disclosure statement to learn more about what is covered by a trauma insurance policy.
Trauma protection can be used to assist pay for the following expenses:
- Medical expenses incurred out of pocket
- You and your family’s daily expenses while you are unable to work
- The price of therapy, nursing care, and specialized transportation
- If necessary, adjustments to housing will be made.
- Repaying your debt, such as a mortgage
Choosing whether or not you require trauma insurance
Consider the following factors when determining whether you require a trauma insurance quote:
- How much money you and your household would require if you were unable to work for a period of time
- Financial protection insurance and total and permanent disability (TPD) insurance can help you restore lost income. You may be able to obtain these insurance policies through your superfund.
- If you have private medical insurance, it may cover some of your medical bills.
- What kind of help might be available from family or friends?
Speak with a financial adviser if you need help determining whether you need trauma coverage and how much you need.
How to Purchase Trauma Insurance
You can purchase trauma insurance by doing the following:
- through the use of a financial advisor or an insurance broker
- straight from a company providing insurance
You can purchase trauma coverage on its own or in conjunction with life and TPD insurance. If you get trauma insurance along with life insurance, the money charged out on a trauma claim may be deducted from your life insurance. To find out if this applies to your policy, consult the PDS or contact your insurer.
Premiums for trauma insurance
In most cases, you can arrange for trauma insurance with either:
stepped premiums — reassessed at each policy renewal, usually growing each year based on the increased likelihood of a claims as you age
Level premiums – charge a larger premium at the beginning of the policy, but cost changes are not based on your age, thus rises occur more slowly over time.
Your selection of level premiums has a significant impact on the cost of your premium now and in the future.
Examine trauma insurance policies.
Compare policies before purchasing trauma insurance to ensure you receive the best one for you. Check:
- The urgent illnesses and severe injuries that are covered
- Limitations
- There are waiting periods before you can file a claim.
- Coverage limitations
- Premiums – both now and in the future
