Trauma insurance, also known as critical illness cover, provides a lump sum of money if you suffer from a specific illness. It covers you for major events such as cancer, blindness, heart attack and multiple sclerosis. It is different to total and permanent disability cover because you don’t have to be totally and permanently disabled to make a claim.
Why is trauma insurance important?
Trauma insurance can protect you if you suffer from a major medical event. If you are diagnosed with an illness such as cancer, you may require time off work and be treated by the best available doctors, which comes at a financial cost. It is designed to provide lump sum of money to replace income if you are unable to work, to help cover medical expenses and to allow you to focus on your recovery without financial stress.
Even if you have income protection insurance, it is still important to insure yourself for trauma insurance as income protection generally only pays up to 75% of your current income. Also, you may need extra money to help pay large medical bills or other expenses.
Can it happen to you?
Don’t think it can’t happen to you? Look at the statistics on just one area of illness – cancer.
An estimated 114,000 new cases of cancer were diagnosed in Australia in 2010. One in two Australians will be diagnosed with cancer by the age of 85. The most common cancers in Australia (excluding non-melanoma skin cancer) are prostate, colorectal (bowel), breast, melanoma and lung cancer.
The rate of new cases of lung cancer among women has risen while the rates for men have fallen, according to a report released recently by the Australian Institute of Health and Welfare (AIHW) and Cancer Australia. The report shows the number of new lung cancers increased markedly in both sexes between 1982 and 2007.
What about trauma insurance for children?
Trauma insurance should also be considered for children once they reach age two. If your child suffers a major illness or injury, either you or your partner will most likely want to take time off work to be with and care for your sick child.
Your child may require surgery, hospitalisation and further ongoing treatment. These expenses can mount up and you may be earning less income if you can’t work.
Without covering a child for trauma insurance your entire family may be subject to financial difficulties. How would you continue to pay your mortgage repayments and other expenses such as schooling, power bills and groceries if you are no longer working?
Trauma insurance can only be added to an adult’s policy, so if you have trauma cover for yourself you can also add your children to the policy. The cost of child trauma cover is usually very affordable.
What should you do?
If you would like to discuss the benefits of trauma insurance please call Avant Financial on 08 6143 3792. Avant is not tied to any product providers so we can help find the most suitable policy for you.