Trauma insurance, also referred to as critical illness insurance provides a lump sum payment if you receive a diagnosis of a specific set of illnesses or injuries. This type of insurance serves as a safety net assisting in covering medical expenses, rehabilitation costs and other unexpected financial burdens resulting from your condition.
Why you need it
- Support: A trauma insurance payout can help cover expenses, like hospital bills, surgical procedures, medications, travel costs related to treatment and lost income resulting from your illness or injury.
- Peace of mind; Having the assurance of support during challenging times can alleviate stress and uncertainty. It allows you to focus on getting better without worrying about the money stuff.
- Flexibility: The money from a trauma payout can be utilised according to your needs. Whether it’s paying for making home modifications, for accessibility reasons taking time off work or paying off a big chunk of your mortgage – the choice is yours.
The Stats
According to data, from the Australian Institute of Health and Welfare the frequently claimed illnesses on trauma insurance in Australia include cancer, heart attack, stroke, major organ transplant and chronic kidney failure. These are a few examples of the conditions that most Trauma policies cover.
The average payout for trauma insurance claims in Australia is $100,000. However, the actual claim amount can vary depending on the severity of the illness or injury and the specific type of trauma insurance policy you hold.
But I have Private Health Insurance
While Medicare and private health insurance can assist in covering medical costs for some illnesses, there are expenses that they may not cover. These can include out-of-pocket expenses for medication, travel costs, rehabilitation expenses, lost income and expenses related to caring for dependents. Trauma cover can help alleviate these burdens by covering costs.
Final Thoughts
In summary, trauma cover serves as a safety net that helps individuals manage both, the direct and indirect costs associated with a serious illness or injury.
If you’re thinking about getting trauma cover, it’s important to compare policies from different providers to find the option that suits your needs. Additionally, factors like your age and health status should be considered as they can influence the cost of premiums and policy terms offered.
If you speak to an adviser to understand your trauma cover options – make sure that you get fully “pre-assessed” with a bunch of insurers before they give you any recommendations as this will help you avoid going with an insurer that might treat you unfavourably due to your health history.
Should you want to know more about this topic or better understand your insurance needs, don’t hesitate to reach out to us for an fully confidential and obligation-free discussion.
MN