What is trauma cover?
Most of us know someone who has suffered a life-changing trauma. While you may be covered for the loss of income if you’ve purchased income insurance, what about the extra costs you may face for your treatment, rehabilitation and recovery?
Trauma cover provides you with a lump sum payment if you're diagnosed with a specified medical condition, serious injury or undergo a medical procedure, as outlined in your product disclosure statement, policy document or plan rules. Trauma cover usually helps with severe heart attacks, major organ transplants, cancers or strokes, just to name a few.
In 2019, we paid $95 million in trauma claims. Below are the top conditions we paid trauma claims for.
You can find more information on claims paid to our customers in 2019 here.
Trauma can help you make adjustments to your lifestyle that you may want or need to make after suffering a trauma event, such as
- Paying for expensive recovery costs including rehabilitation
- Paying for lifestyle changes, eg refitting your home
- Paying off some of your mortgage
- Enable your partner to reduce their working hours to look after you or alternatively hire a carer.
The benefits of trauma cover
- Extra protection to cover you for a specified serious illness or injury
- Secure your short-term financial future
- A flexible insurance product you can tailor to suit your individual needs
Here's what you get:
- a lump sum payment to help with your medical costs and living expenses
- Peace of mind knowing that you and your loved ones will be financially supported if you were to suffer a specified serious illness or injury
Example: John's recovery plan
As the manager of a large electronics retail store in Newcastle, John currently earns $100,000.
John has mortgage repayments of approximately $12,000 per year, other personal loan repayments of $5,000 per year, and investment property loan repayments of $10,000 per year.
John discusses his overall financial protection needs with a financial adviser, who recommends $200,000 in trauma insurance, in addition to any life and TPD insurance.
This amount would allow John to cover his debt payments for two years, provide a salary for a year and also contribute towards medical costs not covered by Medicare or his private health insurance such as rehabilitation costs or changes to his lifestyle.
|Debt payments for two years||$50,000|
|Recommended trauma insurance||$200,000|
Please note this example is illustrative only. Please contact your adviser for a discussion on your specific insurance needs.
How much insurance do you need?
What will it cost me?
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