Trauma insurance provides a lump sum benefit upon the diagnosis of a specified medical condition. There are a number of medical conditions covered under most trauma insurance policies, however the most common conditions claimed for are: cancer; heart attack; stroke and coronary related illnesses.
Holding adequate trauma insurance can give you peace of mind, knowing that if you are ever in this situation, there will be funds available to meet your financial needs which will allow you to focus on your recovery rather than the bills.
The funds could be used to:
- Access the best medical treatment for your condition which may be overseas
- Cover rehabilitation costs
- Reduce the mortgage or other outstanding debts to a more manageable level
- Help replace lost income if you need to take time off to care for family members or simply top up an income protection benefit
You have flexibility in the way you structure your cover. You may hold Trauma Cover as a stand alone policy or link it with Life Cover, which may be a more cost effective solution. Where you do choose linked cover, you are able to hold the Life Cover in super and the Trauma Cover outside super. Two different owners but priced like one linked policy – this is what is often refered to as flexi linking.
Worldwide cover means you are fully covered, 24 hours per day anywhere in the world.
Guaranteed upgrade of benefits means the insurer will automatically pass on any future enhancements to your policy provided they do not result in an increase in your premium.
Guaranteed renewable means the insurer will guarantee to renew your Life Cover each year up until the policy expiry, so long as you continue to pay your premiums when due. The insurer cannot cancel your cover, or increase your individual premiums because of any change in your health, occupation or pastimes.
A range of built in benefits might ve included as well as a selection of extra cost options which will allow you to tailor your Trauma Cover to your specific needs. For example :
- Indexation Benefit – cover will be indexed each year to ensure your benefit amount maintains real value
- Trauma Plus Option – provides cover for a extra events and includes a range of partial benefits
- Trauma Cover Reinstatement Benefit – cover reinstated (commonly) 12 months after a trauma claim
- Disability Premium Waiver Option – premiums waived if you are totally disabled for (commonly) 3 months or more
- Death Benefit – (commonly) $10,000 if you have stand alone cover and no trauma benefit is payable
- Accelerated Life Cover Buy Back Option – where Trauma Cover is linked to Life Cove
- Life Cover Buy Back Benefit – where Trauma Cover is linked to Life Cover, the Life Cover benefit amount will be reinstated 12 months after a TPD or Trauma benefit is paid
- Business Guarantee Option – increase benefit amount by up to (commonly) 3 times the original benefit without medical underwriting
- Future Increase Benefit – the ability to increase your benefit amount without medical underwriting
- Child Cover Option – up to (commonly) $200,000 if your child suffers a specified trauma condition, terminal illness or death
- Blood Borne Diseases Benefit. Medical professionals (doctors and dentists) are covered for occupationally acquired Hepatitis B & C
- Accommodation Benefit – up to (commonly) $250 per day for up to (commonly) 30 days to help cover the cost of a family member to be with you if you are confined to bed
- Financial Advice Benefit – the insurer may reimburse several thousands of dollars for the cost of seeing a financial adviser as a result of a claim
- Suspending Cover Benefit – put your cover on hold for up to 12 months
- Premium Freeze Benefit – benefit amount will decrease each year with age and premium will remain fixed.
Note the information above is general and broad in nature and related to features commonly found when an adviser is used. Each insurer will have different terms and conditions and you should obtain personal advise to determined what is suitable for you. You should not rely on this information for your own personal circumstances.
Contact Experien Insurance Services if you would like further information on trauma insurance.
