Helping you recover
- Would you have sufficient savings to cover large out-of-pocket medical bills?
- Could you afford to reduce your working hours if you needed to improve your health?
- Could you afford for your partner to take some time off work to look after you?
What is trauma insurance?
When you suffer a serious illness, the impact on your life can be enormous. Likewise, the financial impact can be devastating if you’re not adequately prepared for it.
Trauma insurance provides you with a lump sum payment if you suffer an insured major medical trauma. The actual events covered vary between insurers, but some of the most common ones include:
- Heart conditions.
- Neurological conditions — dementia, motor neurone disease, Multiple Sclerosis, muscular dystrophy, paralysis, Parkinson’s disease and stroke.
- Blood disorders — aplastic anaemia, medically-acquired HIV, occupationally-acquired HIV
- Cancers and benign brain tumours.
- Organ disorders — like chronic kidney/liver/lung failure, coma, loss of hearing/speech, major head trauma, severe burns.
Each of the above insured events is usually medically defined within the policy, and the definition must be satisfied to be eligible for a benefit payment. For example, it is not sufficient to simply be diagnosed as suffering from cancer, the type and severity of the cancer must meet the definition within the policy.
What this means to you
The payment of a lump sum from trauma insurance can help you and your family get the financial support you need to get through a major illness without the financial upheaval.
This money can help you do things like:
- pay for the best medical care, both here or overseas
- access the full range of rehabilitation services
- pay for someone to come and help you around the house
- change your lifestyle if required (eg reducing your working hours or taking an extended holiday).
- help with mortgage repayments.
Insurance policies will often vary in their features and benefits, so you should work with your financial adviser to choose a policy that suits your needs and your budget.
Charlotte, 48, was working part-time and looking after her two-year-old grandchild on her days off. One day while looking after little Lucas, Charlotte started to feel severe back pain. After being sent for scans by her GP , Charlotte discovered she had a malignant cancer growing at the base of her spine. She immediately started chemotherapy treatment, and it was looking like she would be unable to work for up to six months.
Without Trauma insurance, Charlotte and her husband Terry would’ve had to find the money to cover Charlotte’s extensive out-of-pocket medical expenses. That probably would’ve meant adding to their mortgage — with only Terry’s income to support it for the next six months.
Fortunately for Charlotte and Terry, they had put in place comprehensive trauma cover for each of them. Charlotte was insured for $200,000, which was paid as a lump sum. This money meant the couple were able to cover her medical expenses, and pay down the mortgage instead of increasing it. They also put some of the money aside to fund a holiday to Europe when Charlotte was feeling better.
What are the chances?
By the time a male reaches age 55 there is a 1 in 2 chance they will have been diagnosed with cancer at some point (1 in 3 for females).
To find out more, or to make an appointment, simply call Maximum Wealth Strategies on 02 60562229 or contact us.