What is Trauma Insurance?
Matt Ireland, Evolution Financial Planning team.
One of the lesser known insurances, Trauma cover (or critical illness cover) provides you with a sum of money immediately upon being diagnosed with a specific illness or suffering a traumatic event. These conditions can range from different types of cancer, diseases or heart attacks. You are usually insured for a smaller sum of money when compared with life or TPD cover as Trauma is intended to cover the immediate medical expenses such as surgeries, home modifications or the purchase of mobility devices.
It can be difficult to work out how much Trauma cover is enough and you need to take into account things such as your age, current insurance coverage and existing assets. Trauma is a very personalised type of insurance coverage that may be incredibly valuable depending on your situation.
Is it expensive?
Trauma cover does tend to be more expensive than the other forms of insurance partly due to the specific coverage and lower number of people owning Trauma policies. For this reason Trauma is often used to ‘top-up’ your other insurances and is rarely used as the sole form of coverage.
Trauma policies can only be owned outside of superannuation meaning all premiums must be paid from your own pocket. This can limit the amount of coverage obtainable by many people.
With all that being said, Trauma insurance can be a key element of a comprehensive financial plan and it is important to assess its value with regard to your personal situation.
If you’d like to discuss your insurance needs in more detail Evolution has a number of Advisers who are happy to chat anytime.