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How Much Trauma Insurance Cover Do I Need

How much Trauma Insurance cover do I need?

Trauma insurance provides you with a lump sum benefit in the event that you are diagnosed with an illness or disease such as cancer or a heart attack.

Taking your time to choose the right amount of Trauma cover will ensure that you are sufficiently covered in the event you need to make a claim, and it also means you won’t be paying more than you need to.

The main thing to keep in mind when determining your level of cover is that the purpose of having Trauma cover is to take financial stress away from unexpected situations.

As well as essential costs such as medical expenses and debts, you may also want a little extra to be able to take off on a holiday and enjoy some rejuvenation time.

It’s also important to see what conditions are covered by the policy in the relevant Product Disclosure Statement, so you know how much and what you’re applying for.

Trauma vs. Total and Permanent Disability (TPD) Insurance

You don’t have to stop working to be able to claim Trauma Insurance. This differs from TPD, which generally, in most instances, requires you to be unable to return to work again to receive benefits.

If you are diagnosed with an illness or disease specified in your Trauma policy document, and meet the eligibility requirements to make a claim, you will receive a benefit payment and, subject to the illness, be able to continue working.

Medical expenses

Would you be able to cover the excess fees and other medical expenses outside of your health cover or Medicare allowances if you were diagnosed with a critical illness like cancer?

To give you an idea, research shows that the average medical costs for a person who is diagnosed with cancer is approximately $150,0001 and a stroke is approximately $20,0002. With these figures in mind, would your health insurance be able to cover these costs? If not, what is the gap?

Your debt

Would you be able to cover your mortgage or other debt repayments if you were unable to work because of a serious illness? With additional medical expenses and potentially lower income if you need to take time off from work, debts and other expenses can quickly build up.

Financial security and peace of mind

Would you be under financial stress if you suffered from a critical illness like a heart attack, cancer or a stroke?

If you become sick, it can be an incredibly stressful time for you and your family. Medical bills and debt repayments should be the least of your worries. Having some extra money available to be comfortable and perhaps even treat yourself and your family to a holiday, can lift some weight off your shoulders and provide significant peace of mind.

We have developed our life insurance calculator to help you determine how much life cover you may need, including the amount of trauma and TPD cover. It takes into account a variety of factors and is a good first step in helping you select the right amount of cover for you. And remember, you can always call our specialist consultants on 13 54 33 for a chat.

Sources

  1. Australian Institute of Health & Welfare, Health System Expenditures on Cancer in Australia 2000 — 2001, Published May 2005. [Figure has been adjusted to account for inflation]
  2. Lifetime costs of stroke subtypes in Australia, Melbourne, June 2003.  [Figure has been adjusted to account for inflation]
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