Completing this series, we look at another possibility for life insurance coverage, found in trauma insurance. As we will see, it can be important to consider. Perhaps this is another item that you should include on your life insurance bundle.
What Does Trauma Insurance Cover?
Well, this can be quite a long list – it isn’t uncommon to see around 50 conditions on such a policy. Trauma insurance can cover health-related issues over and above what your personal health insurance plan might. Consider the following categories and examples will help:
- Heart Disorders: Different surgeries and heart attack
- Blood Disorders: HIV and advanced diabetes
- Nervous System Disorders: Stroke, major head trauma, Alzheimer’s Disease, and coma
- Body Organ Disorders: Different types of cancers, organ/bone transplant, severe burns, and loss of speech/hearing
- Other Events: “Serious injury,” “critical care,” and loss of sight/limbs
- Additional Options: Partial blindness/loss of hearing, diabetes complications, carcinoma of the cervix/vulva, and melanoma
This sample of items can give you a basic and introductory idea of what might be covered.
Trauma insurance works in the same manner as life insurance. Once the item is diagnosed, you will receive a lump sum from the insurer. This sum is equal to the condition (each will likely be different) and will involve a total limit. As with any policy, there will be qualifications – one insurance company online notes that the person must survive for 14 days to qualify (it sounds harsh, but not surviving would lend to a normal life insurance payout).
You may be thinking that this is all a little far-fetched. Indeed, it sounds “out there” and is not your household insurance that you may need – but that could be a mistake to think.
Consider that 44.29% and 37.76% of men and women, respectively, will develop some type of cancer, according to 2005-2007 statistics from the American Cancer Association. Of course, there are a number of other items that you may have to meet – and they can take its toll on your budget.
It would also be illogical to assume that you would be otherwise covered. Of course there would be coverage in terms of health insurance, but what about the effects if you were unable to work for a number of years? Life insurance is of course not relevant, and neither would total permanent disability. Income protection could be a possibility if you have it, but even then a policy could only be for two or three years, sometimes much less.
Thus, you can see how this type of insurance can complete the family of life insurances. It certainly provides an important need if you were to meet one of these unfortunate conditions. You could have quite an extensive set of coverage with life insurance, disability, income protection, and trauma insurance.
Overall, trauma insurance can be an important coverage policy for your needs. It fits in very well where other types of insurances might not provide you with enough financial relief. If you are interested, look to bundle it with other members of the family – they make for excellent bundling potential to get that discount.
Here’s How You Do It:
Step 1: Select your state below.
Step 2: Once you answer a few questions, you will have the opportunity to compare quotes from up to 10 of Australia’s largest insurers. You may also be entitled to a free consultation.
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