In today’s society, it has become increasingly important to have some form of life insurance. Unfortunately – nobody can predict the future and what life is going to throw at us, so life insurance is one of the best ways to keep yourself prepared for whatever comes your way. There are numerous products in the life insurance market to choose from, and one in particular is Trauma Insurance. But what is it and why should you consider it?
What is Trauma Insurance?
Trauma Insurance Cover is a certain type of life insurance that will provide a lump sum of money in the event of you developing what is deemed as a trauma or critical illness or injury. These could include things such as a heart attack, cancer, strokes as well as losing limbs or eyes in accidents and approximately 30 other traumatic events.
Basically, Trauma policies look to provide you with financial stability during the difficult times of recovery and living with the new lifestyle that you must adapt to as a result of your trauma, illness or injury.
Providers offer these policies in different formats. Some are prepared to offer a lump sum of money up front in the event of you being diagnosed with a critical illness or you are incapacitated as a result of a critical injury. Other providers take different approaches; paying out continuous benefits over a certain period of time, like money and financial planning support to help you and your loved ones prepare for the future during your time of recovery.
Trauma Insurance Policies
Most insurance providers offer Trauma Insurance as a stand-alone product as well as a policy that can be combined with other insurances, such as a Term Life insurance plan or TPD cover. Shopping around for insurance is the best way to find a deal that is best suited to you. You could find a great stand-alone Trauma Cover policy that you can purchase in the event of you already having a Term Life plan.
Alternatively, you may be looking to get your first ever life insurance policies and could therefore look around for a combination of life insurance products if you are interested. You could also benefit from combining certain policies together. For example, if you have both Trauma insurance and Income Protection, you could receive the lump sum for your incapacitation as a result of your illness or injury and could be provided with up to 75 per cent of your usual expected income throughout the recovery period.
There are some providers that also offer Trauma insurance cover for children. In most cases, this can be purchased as an additional add-on to your Trauma insurance policy at an increased premium ( usually only a couple dollars extra/mnth). This format of the insurance will cover your child against illnesses that are more likely to occur in childhood, as well as other critical illnesses that could affect them. Some providers are also prepared to pay out a lump sum in the event of your child's death from this critical illness.
When Trauma Cover Insurance is paid?
An important thing to note about Trauma cover is that it will only pay out in the event of you being diagnosed or incapacitated against a specific collection of illnesses and injuries. You should easily be able to get in touch with your insurance provider and ask them what injuries and illnesses are included alternatively contact us to find out more.
It has been suggested that when you are looking for a Trauma insurance policy, you should aim for products that offer as many illnesses and injuries as possible. Some of the best policies available have been known to cover up to 55 critical conditions. If you suffer a condition that is not included in your policy, you wont receive a payout.
Trauma insurance is by no means cheap, but it is great to have the peace of mind that the policy is there to help you prepare for life’s unpredictability.