The concept of trauma insurance is quite simple. You take out a policy and the insurer agrees to pay you a lump sum if you experience a specified illness or injury.
How it Works
Trauma insurance is often taken out in conjunction with TPD and term life cover, which pays your loved ones if you die.
Insured events, such as a heart attack or cancer, can create a situation where a person experiences a loss of income and/or significant expenses (such as hospital treatment, modifications to the home, etc.), but for which life cover and TPD do not insure. Trauma insurance allows a person to insure themselves against the financial consequences of such an event.
What Type of Events are Covered?
This varies from insurer to insurer. The most common type of trauma is the diagnosis of cancer. Most policies cover all major illnesses and injuries, such as heart attacks or strokes. Trauma insurance usually pays out for things like head injuries that might be incurred in a motor accident, for example.
Do I Need Trauma Insurance?
If you or your loved ones would struggle to afford medical care for a major illness, or to replace lost income if the illness or injury prevents you from working, you should seriously consider trauma insurance. The right cover can bring peace of mind and allow you to invest in your own recovery and get back to work again as soon as possible.
How Do I Arrange Trauma Insurance?
The details of trauma insurances can be complex, so it pays to use an adviser to ensure you get things right. The adviser can help you calculate the amount of insurance you need, what you can afford and how it should be arranged (for example, whether you need a combined life policy as well). They will also help you choose a reputable insurer with a good record of paying claims when they are made.
What Happens if I Need to Make a Claim?
The easiest way to make a claim is to have an adviser arrange it for you. Advisers are expert in dealing with insurers and can ensure that everything runs as smoothly as possible.