Trauma Insurance – How does it Work?
Statistics show that most Australians are under-insured. This is partly because they do not fully understand how some insurances work and may see it as simply another cost. It may be another cost, but it is surely one that is vital to keep the finances afloat in difficult times.
Trauma insurance is one of the more recent kinds of insurance sold in Australia and provides benefits upon being diagnosed of certain life threatening events like malignant cancer or heart attacks. These are the two most common claims we receive at CCA Fp.
Given that 1 in 3 people usually suffer from the above disease in their lifetime the likelihood of trauma insurance being paid out is high so premiums are not cheap. Despite this we still recommend people consider trauma insurance as part of a comprehensive insurance portfolio.
It will definitely provide peace of mind.
No one likes to think that something bad is going to happen and Australians are some of the best at hiding their heads in the sand. However, it is quite plain that trauma such as critical illness is even more likely to happen to us now than it was in the past, due to the aging population and the obesity epidemic. Fast foods have become the normal fare for most and so contribute to a number of health issues – in particular heart disease. Sedentary occupations – something that we cannot help – do nothing but exacerbate the problems.
So, given the unhealthy state of the nation the best thing that we can do to help ourselves (exercise and health eating of course) is to take out trauma insurance. It works by providing a lump sum benefit that you choose may with the help of your adviser. This can help with all those additional medical costs as well as the cost of living and paying the usual bills such as the mortgage and utilities. It can help to pay for childcare, nursing and any other number of things that may be caused by the illness. You can have trauma insurance on its own or combine it with a life insurance policy which in Australia is generally the best way.
Without Life Insurance the Australian government will charge stamp duty to a standalone Trauma policy and this cost is generally the same as Life insurance.