Trauma cover, incredible as it seems, creates options for your future by providing you with financial resources not previously available. These options could be to get the best medical treatment available anywhere in the world, pay off your mortgage, take an extended and relaxing holiday overseas, or it could be your forced early retirement lump sum.
WHAT MAKES IT DIFFERENT?
- Life insurance pays out a lump sum when you die.
- Total and permanent disability insurance pays out a lump sum if you have an accident or become so sick that you can never work again.
- Income protection replaces a portion of your income while are unable to work due to illness or injury.
Trauma insurance pays out a lump sum on diagnosis (or occurrence) of a specified serious medical condition. You are paid even if you recover fully, and are only off work for a short while.
Each insurance company has own list of medical conditions, but generally they include conditions such as cancer, heart attack or stroke.
Many families struggle, both emotionally and financially, when someone in their family is diagnosed with a life threatening or debilitating health condition. Trauma cover can help ease the financial burden at a difficult time.
There is no condition on how the payout is used, but generally the funds are used:
- To pay for any additional medical bills
- To replace lost income while ill or recuperating
- To pay for home care or auxiliary services while recuperating
- To pay off debts
- To pay for rehabilitation
- To fund a change in lifestyle
Trauma insurance helps remove any stress and anxiety about your financial affairs and can allow you to adjust your lifestyle. Perhaps want to spend more time with your family, change jobs or build the house of your dreams.
You might think ‘it’ll never happen to me’, but you may think again after considering these facts.
In Australia, cancer has been the leading cause of death in Australia over the past six years, with more than 39,000 people estimated to die from it each year. 1 in 2 men, and 1 in 3 women, will be diagnosed with cancer before the age of 85. Amongst the most common cancers in Australia are cancer of the digestive organs, breast cancer, skin cancer, lung cancer and prostate cancer. (www.cancer.org.au)
- Prostate Cancer
- Almost 3,000 men die each year of prostate cancer and around 18,700 new cases are diagnosed every year.
- Each day about 32 men learn news that they have prostate cancer – tragically one man every three hours will lose his battle against this insidious disease. (www.prostate.org.au)
- Breast Cancer
- More than 2,640 women will die from the disease in a single year – that’s over 7 women each day.
- One in 8 women will be diagnosed with breast cancer by the age of 85. (www.nbcf.org.au)
- Skin Cancer
- Over 380,000 Australians are treated for skin cancer each year– that’s over 1,000 people every day.
- Over 1,600 Australians die from skin cancer each year.
- Australia has the highest rate of skin cancer in the world. Skin cancers account for around 80% of all new cancers diagnosed each year in Australia. Each year Australians are four times more likely to develop a common skin cancer than any other form of cancer. (www.sunsmart.com.au)
- Cardiovascular disease (CVD)
- CVD is the term used for heart, stroke and blood vessel diseases.
- CVD kills 1 Australian every 10 minutes and prevents 1.4 million people from living a full life because of disability caused by the disease.
- CVD is one of Australia’s largest health problems. Despite improvements over the last few decades, the health and economic burden of CVD exceeds that of any other disease. (www.heartfoundation.org.au)
The amount of cover you need will depend on your circumstances but a good starting point could be to pay off your debts. You may want to include an amount to provide an income to allow you time to recover fully before you return to work.
Your financial adviser can assist you to accurately assess your circumstances and calculate the appropriate level of cover to protect you and your family.