Trauma Insurance
Trauma Insurance Explained
Why do I need Trauma Insurance?
Trauma Insurance was the brain child of a South African doctor who witnessed first hand the devastation of one of his patients – a single mum – who was diagnosed with a terminal illness. His patient was forced to continue to work while slowly dying, and suffering a debilitating illness so she could feed her children. The doctor, emotionally affected by this experience approached his insurance provider and gave them an idea for Trauma experience.
Somewhat like Life Insurance, Trauma Insurance (sometimes referred to as a sickness or illness policy) pays out a benefit in the event of a major illness. Imagine the impact on your lifestyle if diagnosed with cancer or suffering a debilitating illness. The fact of the matter is that this happens to many Australians every single day. The cost of medical bills alone means that those without a backup plan find themselves in serious financial trouble. You may not be able to continue to work, or if the unfortunate happens and you are diagnosed with a terminal condition you may not want to work again.
Trauma Insurance is a product that will pay a lump sum in the circumstance of a loved one contracting a serious illness, providing security for your family, and enabling you to focus on recovery as opposed to worrying about bills and the cost of daily living.
How do I apply for Trauma Insurance?
There are a several reliable, reputable companies that offer many different variations of trauma insurance. You can apply directly with many insurers or alternatively apply through your insurance or finance broker.
Similar to purchasing many general insurance products (ie car and home and contents insurance) you can go directly to the insurer by simply contacting their respective contact centre and make an application over the phone.
You will most probably be asked questions pertaining to your previous medical health, family history or in some instances be required to take a medical in your application for Trauma Insurance. Trauma Insurance is not a guaranteed acceptance product and depending on your medical history you may be declined for the product or attract a loading (a higher premium to reflect the higher risk to the insurer). Be mindful that insurers have access to your medical history in event of claim and will most probably deny a claim if deliberate non-disclosure of pre-existing medical conditions is discovered from Medicare records.
Smokers generally attract higher rates than non-smokers.