Trauma Insurance

There are many serious illnesses and injuries that are not fatal but that can change your life forever. Traditional term life insurance does not provide financial protection for these types of illnesses and injuries because life insurance policies generally pay only upon death or diagnosis of a terminal illness. While having health insurance can make sure many of your medical expenses are covered, you may still end up with a signifiant out-of-pocket obligation to pay for treatment after suffering a serious injury or getting badly hurt in an accident. Your health insurance is also not going to help with living expenses if you can’t work. To fill the gap provided by these other types of coverage and to ensure you have the money you need at a time when you require it most, trauma insurance is available. Trauma insurance, or critical illness cover, provides you with a lump sum payment if you develop certain medical conditions. Trauma insurance provides you with the peace of mind of knowing that you are covered in case the worst happens.

What is Trauma Insurance?

Trauma insurance, or critical illness cover, provides coverage for certain qualifying medical conditions. Depending upon the insurance company you get your policy from, you may be covered for around 50 different medical problems that you could develop. If you are diagnosed with one of these medical issues, you can make a claim with your insurer to receive a lump sum payment that covers your costs and expenses.

Who Needs Trauma Insurance?

Virtually everyone can benefit from having trauma insurance coverage in place. Trauma insurance provides financial help where life insurance and health insurance fall short. Trauma insurance ensures you do not end up bankrupted by medical and other debts, and this type of insurance allows you to protect the assets you have worked hard for over your life. Almost one on three men and one in four women in Australia get a cancer diagnosis by the age of 75. Around 3.7 million more Australians are affected by circulatory diseases that could lead to heart attack or stroke. Around 80 percent of people survive a stroke or heart attack, but may have huge ongoing costs associated with rehabilitation. Trauma insurance ensures that you do not have to face financial worries due to bad health.

What Does Trauma Insurance Cover?

Trauma insurance provides a number of different kinds of benefits. The specifics of what your policy covers are going to vary depending upon the policy you have purchased. However, some of the different kinds of coverage to look for in a trauma insurance policy include:

  • The amount of the lump sum trauma benefit you will receive when diagnosed with a qualifying condition.
  • Payment for a financial planner after your claim is made
  • Accommodation benefits, which pay for accommodations for our family members if you are bedridden a location away from your home.
  • Child trauma benefits, which is an optional type of coverage that provides money to pay for child care and the support of your children if you become seriously ill.

Many trauma insurance policies have an indexation feature so the sum that is insured annually increases based on the increase in the consumer price index. Your policy may also have a provision that will waive premiums if you become totally disabled.

What kinds of conditions trigger a trauma insurance payout?

There may be as many as 50 different medical conditions that will trigger a payout from your trauma insurance policy. You should speak with your insurance company about the medical conditions that allow you to qualify for benefits under the terms of your coverage. Some of the common illnesses and medical problems that generally lead to a trauma insurance payout include:

  • Alzheimer’s disease or dementia
  • Amputation of limbs
  • Brain tumors
  • Brain injury including coma or any major head trauma
  • Blindness or deafness
  • Severe burns
  • Cancer
  • Chronic kidney failure
  • Coronary bypass surgery or a coronary artery angiography
  • Diplegia
  • Encephalitis
  • Heart attacks or cardiac arrest that occurs outside of a hospital
  • HIV acquired accidentally or through your occupation
  • Hemiplegia
  • Hypertension
  • Loss of an eye
  • Loss of the ability to speak
  • Loss of the ability to exist independently
  • Lung disease
  • Multiple sclerosis (MS)
  • Parkinson’s disease
  • Peripheral neuropathy
  • Stroke
  • Any type of terminal illness.
  • Transplant of a major organ

Because each policy may differ in the conditions it covers, you should carefully review policy language before purchasing insurance to ensure you have broad coverage for the most common and serious medical conditions.

When should you purchase trauma insurance?

It is important to purchase trauma insurance coverage while you are still healthy. If you buy and keep a policy when you are young and in good health, your premiums will generally be lower and you can rest assured you have the coverage available to you if you ever need it. To protect your finances, begin looking for the right trauma insurance policy today.

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