Trauma Cover - a priceless benefit

Thu Aug. 26th 2021

Receiving a diagnosis of a major medical condition is life changing, and for many unthinkable. Aside from the emotional impact, there are many practical and financial implications this could pose. Having access to a lump sum of money can help alleviate this impact.

Sadly, we have had a recent run of claims, many of which have been related to cancer. But thankfully, all of our clients who have received a heart breaking, and in some cases, life changing, diagnosis have had suitable cover in place. 

For one couple, their trauma cover has allowed them to repay their mortgage and for her to take timeout from work and focus on recovery as she goes through the difficult treatment period.

The value of trauma cover is that it covers around 40 different common serious illness conditions such as heart attack, cancer and stroke ,and provides a lump sum payment should you suffer one of the Covered Conditions.

The Covered Conditions are by nature serious and potentially life threatening but do not need to be terminal. As a result, the occurence of one of these conditions can have a significant financial impact. Trauma Cover is designed to help alleviate this financial impact. The lump sum can help reduce debt, purchase specialised equipment, pay for home modifications, provide additional care, create an investment fund to generate ongoing income, or enable business ownership to be restructured, among other things. The purpose of the funds is entirely yours to decide.

Due to the increasing comprehensive nature of Trauma Cover and increase in the average size of a mortgage, some insurers are now offering severity based trauma options, which offers the majority of the same conditions as Trauma Cover, and most with identical criteria, while some conditions such as cancer, heart attack and stroke require a greater level of severity before a claim would be paid.

These Severity based covers works best when combined with regular comprehensive Trauma Cover to provide a severity-based insurance solution. Smaller payments can be made for less severe events under Trauma Cover, while suffering a Severe Trauma Condition will almost always result in both the Trauma Cover sum insured and Severe Trauma Cover sum insured being paid.

To manage the costs you have the choice to select Accelerated Trauma Cover, which means in the event of a claim all or part of your Life Cover sum insured is paid out. Alternatively you can select Standalone Trauma Cover which pays a lump sum and does not reduce any other cover you might have. Accelerated Trauma Cover is less expensive than Standalone Trauma Cover.

If you have no trauma cover, are unsure what your policy includes, or if you have trauma cover but the cost is too high for your budget, we are happy to do a review of your situation and ensure you have the right amount of cover for the right situation at the right price. Let us help you take the headache out of arranging the best cover. 

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