Trauma Insurance

Trauma or critical illness policies pay a lump sum in the event of an injury or sickness as defined in the policy.

Trauma policies are not intended to replace having private health insurance but rather are designed to ease any financial burden that will arise upon such an event occurring. There is a wide range of policies covering numerous events but the majority of claims are paid for cancer and heart attacks. The list of conditions covered is often optional and varies between companies as do the definitions of those conditions. Some trauma benefits are subject to a qualifying period. The benefit can be provided as either an advance payment of a death benefit or on a stand-alone basis. This cover is also available for children who are under the age of 18 years old.

As advances in medicine and technology continue, more people are surviving a critical illness where they may not have in the past. The chances of you suffering a critical illness may not seem likely however, one in two men and one in three women will be diagnosed with cancer before the age of 85 and an estimated 3.67 million Australians are affected by heart/vascular disease or stroke. Trauma payments may be used to pay for lifestyle alterations and any rehabilitation that may be required due to a defined critical illness or to allow you to take time off work to assist in recovery.

Trauma insurance allows for financial flexibility at a challenging time. It can open the door to treatment options that may not have been available without a significant lump sum on hand. It can also fund time for a spouse or family member to take time off work to help care for you when you need it most.

Not all trauma contracts are created equal and there can be significant differences between insurers – how an insurer defines “heart attack”, for example. Many insurers offer partial claims on their policies but these can differ also, with some providers paying up to four times what another insurer will pay for the same event. It is important to have guidance and the right advice to ensure that you secure the policy that fits you best on the Sunshine Coast.

 

Examples of Trauma Insurance claims paid by TAL in 2011

Occupation

Age

Gender

Cause

Benefit Paid

Teacher

49

F

Breast Cancer

$566,488

Real Estate Agent

51

M

Heart Attack

$1,987,883

Financial Adviser

31

M

Bowel Cancer

$231,525

Medical Practitioner

46

M

Stroke

$948,150

Manager/Executive

47

M

Prostate Cancer

$630,000

Medical Specialist

46

F

Breast Cancer

$1,551,328

Bookkeeper

52

F

Thyroid Cancer

$781,385

Property Developer

51

M

Lung Cancer

$1,037,784

Carpenter

57

M

Heart Disease

$722,901

Manager/Executive

32

M

Bowel Cancer

$250,000

 

Source: TAL Claims Statistics 2011, TAL Life Limited.