Trauma insurance is the middle child of the personal insurance family. It’s overshadowed by its better-known siblings but it’s a quiet achiever that will do the heavy lifting when the circumstances require it.
Trauma insurance – sometimes known as critical illness insurance – provides a lump sum payment in the event of a major illness or injury, such as a cancer diagnosis, heart attack or stroke.
Trauma cover pays for rehabilitation, carers, other forms of treatment and loss of income that health insurance does not. With trauma insurance, there is no ifs or buts. Once a diagnosis is made, you qualify for a lump sum payment which will allow you to cover medical expenses, pay the mortgage or stop working for a while to concentrate on getting well.
Trauma cover is best seen as a complement to, rather than substitute for, these other forms of personal insurance:
- Life insurance pays your dependants a lump sum if you die.
- Income protection insurance replaces (most of) your salary for the period you are unable to work due to illness or injury.
- Total and permanent disability (TPD) insurance provides you with a lump sum payment if you suffer an injury or illness that prevents you ever working again.
If you don’t have any personal insurance, you would be well-advised to investigate some of the more well-known policies before considering trauma cover.
Avoiding being under or over insured is no simple task. If you’d like us to help you work out your insurance needs, give us a call.
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