Personal Insurance - What is trauma insurance and should you be considering it?
When people think of personal insurances they often think of life insurance and sometimes disability insurance. One of the lesser known insurances is trauma insurance (sometimes also known as crisis or critical illness insurance).
This type of insurance provides you with a lump sum payment if you are diagnosed with a major illness or severe injury and is designed to help with ongoing living costs, medical costs and other expenses associated with a major medical event.
Who should get trauma insurance?
Trauma cover may be suitable as part of whole financial plan for those trying to build and protect their wealth.
Unlike income protection, this type of insurance does not require you to be unable to work and so can also be a good alternative for stay at home parents who are not earning an income through employment, but whose illness would impact the family financially.
To determine the right level of trauma cover required, there are a number of factors that need to be taken into account including what your income and expenses would be if you were to suffer a major medical event, what type of family support you have, if you have private health cover and what cover it provides.
How do you get trauma insurance?
You can obtain trauma insurance directly with an insurance company, however by engaging an adviser to assist you, your circumstances as a whole can be examined to determine if trauma cover is suitable for you, and then determine the right level of cover for you.
ASIC’s Money Smart website provides some great tips and information on trauma cover here.
Our team of specialists are here to help
To ensure you are equipped with everything you need to make an informed decision, get in touch with the Rethink Financial Planning team. We’re a team of highly-trusted financial advisers in Newcastle and can offer you personalised financial advice to work through the pros and cons of whether or not this is the right strategy for you.
Contact us on 4962 4440 or you can fill out our Pre-appointment Questionnaire here and one of the team will be in touch.