What is Trauma?
Trauma pays you a lump sum if you suffer a predetermined health condition and survive 14 days. Most of the claims we see are for cancer, heart attack and stroke.
Trauma covers a broad range of events, such as major burns, major head injury, meningitis, and more…
Why do I need Trauma?
Medicine has advanced by leaps and bounds in the last 50 years. People used to die from many serious medical conditions but now have a much greater chance of surviving. Consider this, 52% of male cancer patients and 59% of female cancer patients will be alive five years after diagnosis.
When you have been through a life-changing illness such as cancer, heart attack or stroke, priorities change. Spending time with loved ones becomes so much more important. This is when you need money – as soon as something happens, because that’s when life changes!
Trauma provides you with a lump sum payment that leaves the choice in your hands – you may want to pay off the mortgage, fly to Disneyland or just spend time with your family without having to worry about where the money will come from.
Unlike Income Protection, Trauma doesn’t depend on whether you can work or not. To qualify you need to survive 14 days after being diagnosed with a covered condition such as cancer, heart attack or stroke.
Do I have the right cover?
There are different ways you can structure your cover which will make a massive difference to you at claim time. We always recommend a ‘Stand Alone’ benefit when available.
When a claim is paid under a Stand Alone benefit, the pay-out does not affect any other benefits that you have i.e. if you have $500,000 Life Insurance and $200,000 Trauma, and you make a claim, you receive a pay-out of $200,000 and your Life Insurance benefit will remain at $500,000.
With an Accelerated benefit, your Trauma benefit is linked to your Life Insurance benefit. If you make a claim under your Trauma cover, your Life Insurance benefit will reduce by the amount that is paid out i.e. if you have $500,000 Life Insurance and $200,000 Trauma cover, and make a claim, you will receive a pay-out of $200,000 and your Life Insurance benefit will reduce to $300,000.