What is Trauma Insurance and Do I Need It?
What is Trauma Insurance? Do I need it? How much Trauma Insurance cover do I need? What does it cover?
Trauma insurance, alternatively known as critical illness insurance, pays benefits should the insured(you) suffer or become diagnosed with a severe medical condition, typically terminal. There may also be coverage for serious injuries.
Why is this important? Severe and terminal illnesses and debilitating injuries do more than just cause physical and mental harm. They can also cause shortages in finances due to expenses and disruptions of livelihood. As such, the benefit can be used to cover expenses while the insured focuses on recovery.
What conditions are covered by trauma insurance policies?
Each critical illness insurance policy is different. However, the usual conditions that are covered generally include various types of cancer, heart disease, and stroke. Brain damage and other neurological conditions are also commonly covered in standard trauma insurance.
Of course, some policies are a tad more comprehensive and also cover other conditions. These include the following:
- Carcinomas and benign tumours
- Disabilities like partial blindness or loss of hearing, paralysis, and others
- Comas, dementia, and cognitive loss
- Kidney, lung, and other types of organ failure
- Major organ transplants
- Severe medical conditions stemming from accidents, like burns, major trauma, or loss of limbs
Again, these are just some of the conditions included in comprehensive trauma cover. Be sure to check the individual policy for a better idea regarding included conditions.
What are the mechanics and eligibility requirements for trauma insurance benefits?
Trauma insurance pays the benefits if an accident or serious medical condition occurs. If the condition is included in the cover, the insured shouldn’t worry about getting the benefits.
Take note that trauma cover benefits are often one-time payments. That means that there won’t be a constant trickle of pay-outs that other life insurance policies have. Instead, a lump-sum will be given should the medical condition occur.
Again, each cover has different conditions that pay benefits. It would be wise to review all the included conditions before signing up for a specific trauma insurance policy.
How do trauma insurance policies work with other life insurance policies?
Insurance providers offer this insurance either bundled with other life insurance policies or as a standalone product.
Critical illness insurance bundles with other policies are typically more cost-effective but may have narrower cover ranges as a result. On the other hand, standalone insurance can cover more conditions but are usually more expensive.
When purchasing trauma cover policies, don’t just look at prices or included conditions. Each person has different needs, and as such, must consider the following while choosing a policy:
- Existing medical conditions or predisposition to disease
- Occupational hazards
- Existing loans and mortgages
- Monthly income
- Other expenses
Existing medical conditions, predispositions, and occupational hazards are obvious considerations. However, why is it important to also consider existing loans and other expenses?
Remember that incurring an injury or a medical condition is expensive. Taking expenses into consideration makes sure that medical care isn’t compromised while still being able to pay loan repayments.
Survival periods and exclusion periods are important!
Trauma cover doesn’t always pay out benefits, even if the policy includes the medical condition. There are two crucial things to take note of regarding this:
- Exclusion period: Any diagnosis within the exclusion period (usually within 90 days after critical illness insurance is purchased) will not pay benefits.
- Survival period: If the insured passes away within the survival period after diagnosis, the insurance provider will release lower benefits. For example, suppose that the survival period is 10 days for a certain policy. If the policyholder passes away within 9 days after diagnosis, the benefit will be lower or not be released.
Compare Trauma Insurance Policies Today
Critical illness insurance policies are crucial in helping you protect your livelihood and your family. If you feel that you need it, make sure to consider all options possible.
Use a comparison site to help you decide! MakesCents.com.au is one such site and can help you see all offers side-by-side. It can save you a lot of time and effort when you start comparing your different offers today.