Of all the personal insurances you can buy, the one you are most likely to claim on in your lifetime is Trauma insurance. But because it’s the most claimed on, it is generally the most expensive.
This two-edged sword makes it a tough decision whether or not to take it up.
Trauma insurance, or critical illness as it’s sometimes referred to, provides a lump sum payment to cover immediate medical expenses and other financial needs when you suffer a critical illness or injury, or undergo a major medical procedure.
The idea is that, though income protection will replace a portion of your income if you can’t work, it’s useful to have a lump sum to help cover immediate expenses.
Some also implement trauma cover on the basis that if they suffer a critical illness and make a successful claim, it provides the financial flexibility to allow their spouse to take time off from their work to help care for them and the rest of the family.
The medical conditions covered under trauma insurance vary from policy to policy but will generally include various cancers, heart conditions and stroke. For this reason, it’s important you refer to your policy’s “Product Disclosure Statement” (PDS) to see what medical conditions it covers and the specific definitions they use.
Article by Rowan Jones – Your Money – The West Australian – 10 Sep 2018