What is trauma insurance and what does it cover?
Trauma insurance, sometimes referred to as recovery insurance or critical illness insurance, covers you if you are diagnosed with a serious illness, disease, or disorder. Paid as a once off lump sum payment, trauma insurance helps reduce stress during an already stressful period in people’s lives.
While the illnesses covered by Australian trauma insurance vary policy to policy, trauma insurance policies can cover you for up to 50 different medical conditions common in Australia. Most polices, however, will cover cancer, strokes, diabetes and heart attacks. Trauma insurance is especially important for aging Australians (those over 40), who are at increased risk of these conditions.
Before deciding on your level of trauma insurance, you should consider your current income any other related insurance policies, such as life insurance, or income protection insurance. You need to consider the number of dependents in your family and factor in any debts, loans or mortgages that need covering.
What are the benefits of trauma insurance?
While your private health insurance may cover many hospital expenses, medical treatments and rehabilitation costs, if you are faced with a major medical crisis, you will end up out of pocket. You will be required to pay for ongoing treatments and medications, rehabilitation equipment and specialist therapy. Unlike TPD insurance, which can have a waiting period of 3 months or more, trauma insurance is paid after your diagnosis as long as you have held the policy for more than 30 days, so you have the money when you need it most. If you want complete coverage for an injury or illness, you will need both trauma and TPD insurance.
The lump sum payment received from trauma insurance can help you:
- Pay for comprehensive, quality treatment and care
- Cover ongoing rehabilitation costs
- Cover in-home help, or care
- Help pay off debts and relieve financial pressure
- Bolster your payments from your income protection plan
- Protect your savings and retirement funds
- Prevent you relying on Centrelink, or other social security benefits
Do you need trauma insurance for you, or your family?
At Guardian Group we are committed to helping all Australians protect themselves against trauma. If you want to take out trauma insurance, then contact us today. Our team of qualified financial advisers can help you determine what level of cover you require. We offer both stepped and level premiums to our customers and customise our insurance policies to best fit your needs.