Definition of Trauma Cover Insurance
Trauma Cover Insurance pays a lump sum in the event of a diagnosis of incurable condition, e.g. cancer, stroke, heart attack, major head injuries.
Purpose of Trauma Cover Insurance
If a person suffers a medical trauma, term life insurance won’t help as the person is still alive. Suppose a person has a mild heart attack and is seriously ill but is able to return to work after two months. Will he or she be as productive as before or stand the stress associated with working as hard? Policies like income protection and TPD may not be suitable since pay-out depend on the effect of the event after its occurrence. What is needed is a cover like trauma insurance which pays out on the actual occurrence of the incident.
Trauma insurance (also known as critical illness insurance) provides a cash lump sum in the event of contracting a specified disease or trauma. The number of conditions covered (benefits) varies widely, cheaper policies often offering less benefits.
In most cases "accidental" types of traumas are covered immediately, although many insurers impose a waiting period (commonly 90 days after the policy is accepted) for certain illnesses. Typically trauma policies will pay benefits in the case of some or all of the following critical illnesses:
| Alzheimer's Disease Aplastic anaemia Blindness Burns - severe/major Cancer Cardiomyopathy Coma Coronary artery angio Coronary bypass surgery Deafness Dementia Diplegia Encephalitis Heart attack |
Heart valve surgery |
Paraplegia Parkinson's Disease Pulmonary hypertension Quadriplegia Stroke Terminal illness Life Cover - death benefit Total & Permanent Disability Aortic surgery Out of hospital cardiac arrest Benign brain tumour HIV - accidental infection Peripheral neuropathy |
The function of trauma insurance is to:
- Pay for specialist or international medical attention
- Cover the cost of modifications to the home
- Avoid financial stress in recuperation (debts, etc)
Target Market
- To repay debt
- Single people wishing to maintain financial independence.
- A homemaker who would usually perform the duties of a housekeeper or nanny.
- Those who may require cash support for their business while they take on the role of carer.
- Those who would like to be able to choose private medical care rather than remain on a waiting list.
At Rate Detective we have secured the services of some of Australia’s best Trauma Cover professionals that are available for a free one-on-one consultation to identify your needs. If you are interested in Trauma Cover Insurance, or any other forms of income protection insurance, please feel free to make an enquiry and we will put you in touch with one of these professionals.
