With the remarkable advances in modern medicines, more and more people are now surviving major traumas such as heart attack, cancer, and coronary artery surgery. However, the recovery period and the cost of care associated with such illnesses normally places extreme financial strain on the person suffering the illness and their family.
Trauma insurance (also called Critical Illness Insurance or Recovery Insurance), similar to Income Protection and Total and Permanent Disability Insurance (TPD), pays a “lump sum” figure in the event of a critical injury or serious injury.
This may include:
Paraplegia / Quadriplegia
(Up to 30 conditions can be specified on a policy.)
The maximum payout is about $2,000,000 across all insurers.
The insurance may help to cover:
Regular bills and expenses while you’re out of work
Income for your dependents
Ongoing pharmaceutical costs
Ongoing caring or nursing support
Unlike Life Insurance, which is paid only after you die, Trauma Insurance is paid when there is a confirmed diagnosis, giving you access to funds when you need them most.
Some policies have a 14-day survival period requirement after first diagnosis, where the policy will only pay a benefit if you survive the 14-day period, or may pay a smaller benefit if you do not survive this period.
Upon diagnosis, Trauma Insurance makes it possible for the insured person to ensure all of their living and medical costs are taken care of.
Such a payment will assist you to be financially secure and may be used in any way you like.
Benefits are generally considered tax free. (You should consult your Accountant for formal confirmation.)
Just like Life Insurance and Income Protection, there are many insurance products available in this space and so it’s important to know what exclusions apply to your policy.
To get straightforward advice and find the best coverage that’s right for you without paying more for premiums than you need, speak to a CorpSure advisor for an obligation-free confidential discussion.
With a combined 200+ years experience, our highly qualified experts understand the importance of insurance across all aspects of business and provide innovative insurance solutions.