A serious illness can make it difficult or impossible for you to continue to work. If something were to go wrong and you weren’t able to work for an extended period of time, you would probably need to find a way to support yourself and your family financially. Trauma cover can provide a financial safety net for such events.
Trauma insurance is a type of life insurance that pays a lump-sum payment in the event that you are diagnosed with a specified illness including things like cancer, heart attack, stroke etc. Trauma insurance is designed to give you money when you need it most to cover things like:
- Any private medical costs above your health insurance
- An income stream if you stop working (This can be provided for through income protection but generally only up to 75% of your income)
- The ongoing cost of any therapy and special transport costs
- Adjustments to housing and lifestyle changes
- Debt repayments
It is the most expensive life insurance product, however it is also the one that is most claimed upon! If you were to suffer from cancer and were to be off work for a couple of years due to treatment your life insurance would not pay out and your TPD insurance would not pay out because you will return to work one day. However, your trauma insurance would give you that lump sum payment to ease the financial pressures of not working.
Lakeside Financial Planners can assist with personal life insurance to protect your income in the event of death, injury or illness. To find out whether you have appropriate and accurate cover, why not schedule a meeting with Gerry or Clae now?
By Matrix Planning Solutions. Information current as at 10 June 2015
The advice is general in nature only. Before acting you should consider the appropriateness of the information having regard to your personal objectives, financial situation and needs. You should read the relevant Product Disclosure Statement (PDS) and Policy Document before making any decision about a product.