Trauma Insurance is a Waste of Money....Until You Need it!

There a lot of people that would consider spending thousands of dollars paying for a Trauma Insurance policy is a waste of money...until, that is, they (or someone they know) is diagnosed with cancer, or suffers a heart attack.

Just before Christmas this year, one of our clients was diagnosed with cancer, and as we go through the process of managing the claims process for them, some very real reasons for having a quality Trauma Insurance policy from a reputable life insurance company have become apparent. Based on our actual experience (and not just a scenario), here's a brief summary of the reasons you would want Trauma insurance cover if you were diagnosed with cancer:

• You don't have enough Sick Pay or Income Insurance to cover the time-off you'll need to go through, and then recover from Chemo (6-12 months for our client)
• You want to have the choice of your own medical doctors to get the best possible care (our client chose thier own doctors and had the tumour removed within days of diagnosis)
• You don't have enough money to cover the gap between medical expenses and medicare/medical insurance claim payments (our client is still collecting the bills)
• You don't want to have financial pressure whilst you're trying to recover (Sick Pay only lasts so long, and Income Insurance only covers a maximum of 75% of your gross income - and then you have to pay tax on the claim payments!)
• You want to take some time for yourself after you get through the treatment, even though you may be 'medically fit' and able to return to work (major medical trauma tends to have you focus on your 'Bucket List'  - world trip, travel around Australia, perhaps?)

Trauma insurance (also known as 'Recovery Insurance' or 'Crisis Insurance') is a non-taxable lump sum payment paid in the event you suffer from a major medical trauma - such as cancer. It's primary purpose is to pay for any medical costs you may incur (in addition to Medicare or private medical insurance payments), and there may be considerable costs incurred in addition to those costs paid for by Medicare and or your private medical insurer, but Trauma insurance claim payments should also be used to help you get back on your feet - in your own time, and not when a doctor or an insurance company tells you it's time to get back to work.

Fortunately for our client, they took our advice about having Trauma Insurance (as well as Income Protection Insurance), and accepted our assessment of how much Trauma insurance they should have, which included provision for not only medical costs, but also provided enough money for the client to pay-off all of their debts, and take a year off work, so they can take the time to fully recover from their all-too-real medical trauma.

Of course everyone's circumstances are different, but if you don't have Trauma Insurance or you would like to make sure you have the right amount of cover, don't hestitate to contact us now and arrange a free financial assessment appointment, which includes a preliminary Trauma Insurance assessment. AND remember: EVERYONE NEEDS A PLAN!