Understanding the Importance of being insured in the event of a critical illness and the impact

Trauma insurance is a very important for protecting your personal finances and welfare in the event of an emergency. When you suffer a serious illness, the impact on your life is likely to be enormous. The financial impact can also be devastating on the family budget if you’re not adequately prepared for it. A critical illness policy provides certainty in protecting a portfolio in lieu of the uncertain nature of investing and preserving a family’s welfare.

Helping you recover

Would you have sufficient savings to cover large out-of-pocket medical bills? Y/N

Could you afford to reduce your working hours if you needed to improve your health? Y/N

Could you afford for your partner to take some time off work to look after you? Y/N

What is trauma insurance?

Trauma insurance provides you with a lump sum payment if you suffer an insured major medical trauma. The actual events covered vary between insurers, but some of the most common ones include:

−   Heart conditions.

−   Neurological conditions — dementia, motor neurone disease, Multiple Sclerosis, muscular dystrophy, paralysis, Parkinson’s disease and stroke.

−   Blood disorders — aplastic anaemia, medically-acquired HIV, occupationally-acquired HIV

−   Cancers and benign brain tumours.

−   Organ disorders — like chronic kidney/liver/lung failure, coma, loss of hearing/speech, major head trauma, severe burns.

Each of the above insured events is usually medically defined within the policy, and the definition must be satisfied to be eligible for a benefit payment. For example, it is not sufficient to simply be diagnosed as suffering from cancer, the type and severity of the cancer must meet the definition within the policy.

What this means to you?

The payment of a lump sum from trauma insurance is designed to help you and your family obtain the financial support you need to get through a major illness without the financial upheaval.

This money can help you:

−   pay for the best medical care, both here or overseas.

−   access the full range of rehabilitation services.

−   pay for someone to come and help you around the house.

−   change your role if required (e.g. reducing your working hours, changing your role, or taking an extended holiday).

−   help with mortgage repayments.

Insurance policies will often vary in their features and benefits, so you should work with your Financial Adviser to choose a policy that suits your needs and your budget.

What are the chances of a Critical Illness?

Cardiovascular disease (CVD) is the leading cause of death in Australia, with 45,392 deaths attributed to CVD in Australia in 2015. Cardiovascular disease kills one Australian every 12 minutes.

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