Trauma insurance pays you a lump sum payment if you’re diagnosed with a specific illness, such as cancer, heart attack or stroke. You may be covered for a number of illnesses, depending on the policy and insurer.
This type of insurance gives you money when you need time to recover. For example, if you were diagnosed with cancer and had to take time off work for treatment, your life insurance wouldn’t cover it. Nor would your Total and Permanent Disability (TPD) insurance, because you will return to work one day.
Trauma insurance is designed to cover this gap, giving you a lump sum payment to ease the medical costs and financial pressures of not working.
Sebastian is 56 when he is diagnosed with cancer. While it is not terminal, there are ongoing medical costs that he and his wife Denise will need to consider.
Sebastian commences chemotherapy at a cost of $15,000 per month. His private health insurance covers $8,000 of these costs, leaving $7000 per month in medical bills still to be covered.
Thanks to his trauma insurance cover, Sebastian and Denise receive a payout of $200,000. This allows them to fund the medical treatment when required, plus cover any additional costs that may arise due to their change in circumstances.
Without this insurance, Sebastian and Denise would have had to pay the additional $7000 from their own pockets – which would have had a huge impact on their lifestyle and placed them in financial stress during a very difficult time.
Would you have the necessary funds if this situation happened to you?
Working with your Resolve Financial Planner will ensure that you and your family are protected, regardless of how your personal situation may change over time.