How would your loved ones cope if you suffered a stroke or were diagnosed with cancer?
Not only might you lose your income through not being able to work, but you might also have to tap into your savings, sell your home or face major costs for medical treatment and rehabilitation. Not a pretty picture.
Source: Clip supplied by CMLA ABN 48 123 123 124 AFSL 234945.
The information is of a general nature only and is not specific advice.
Trauma Insurance, also known as Critical Illness insurance, can help remove many of your financial worries and allows you to concentrate on getting better if you became critically ill. This cover can pay a lump sum to help with medical costs if you suffer from critical illness conditions such as cancer, heart attack or stroke. It’s part of our tailored insurance range.
Income protection insurance won’t pay until you have stopped working or met the income protection definition. However, with some cancers you can still work initially until your treatment kicks in. Then Income Protection Insurance will pay, but that could be months away.
Total and Permanent Disability Insurance won’t initially pay here either, as you need to be totally disabled. The solution to remove this gap is Trauma Insurance, which pays out a cash lump sum on the diagnosis to provide you full financial support.
How much Trauma Insurance do I need?
When calculating how much Trauma Insurance you need we suggest you include a cash lump sum to:
- Extinguish debts, home mortgage, car leases, personal loans.
- Avoid financial stress while you are recovering.
- Pay for specialist medical advice and treatment.
- Get immediate medical attention – no waiting lists!
- Allow a cash lump sum to make any modifications to the home.
If you are in business:
- Extinguish debts, business loans, debentures, line of credit, car leases etc.
- Avoid loss of profits whilst you are in recovery.
- Cover any key income producing employees – loss of profits.
Can I also include Life Insurance with my Trauma Insurance policy?
Yes, you most certainly can! This is in fact a great way of reducing your Trauma Insurance premiums and buying the cheapest Trauma Insurance in Australia. In fact if you don’t buy Life Insurance with your trauma policy the Australian government will charge you extra stamp duty on your Trauma Insurance policy.
In most cases, we have found that the added Life Insurance premium is nearly the same as the stamp duty charge so it really makes sense to include Life Insurance.
So how does it all work?
If you suffer from a critical illness you will receive a cash lump sum which is your Trauma benefit.
If you have what is called buy back life insurance as part of your policy and you survive the critical illness event for 12 months and pass away for whatever reason after that the life insurance company will pay your estate another cash lump sum.
Alternatively, if you pass away first then only one payment will be made.
You also have a choice of Standard and Plus cover to cater to your needs and budget:
- standard cover - provides benefits for the most common critical conditions with fewer additional options, at a lower cost to suit your budget.
- Plus cover - provides benefits for an extensive range of critical conditions and additional options that suit your needs.