Helping you succeed in life's financial journey
Trauma cover - why you need it more than life insurance
Did you know you're more likely to suffer a critical illness than need life insurance during your working life?
Our insurance advisers have put together some compelling stats that might surprise you - check out our below infographic.
What is Trauma Cover?
Trauma or living insurance has become a vital part of personal insurance. This insurance protects against serious illness, often up to 60 or so conditions, with the most common claims being cancer, heart problems and stroke. Indeed, around 60% of claims for females are for breast cancer.
Over the years, our insurance advisers been involved in many claims and witnessed the relief felt when financial pressure is removed during an individual’s recovery.
‘Severity based’ Trauma pay-outs
Newer trauma products are ‘severity based’. There are times when a person many place a trauma claim and it is declined due to some terms not being met. Think a mild case of melanoma for example, which is often not covered unless the cancer is advanced.
A severity based product may pay a percentage of the insurance amount if the condition is less severe. In this case, some money is preferable to none.
The stay-at-home parents need Trauma Cover too
It’s easy to think about protecting the main breadwinner in the household, because you want to protect that income. But the stay-at-home parent is just as important to protect – and here’s why:
- They might not bring in much of an income, but if they got sick, could the main breadwinner continue to bring in their entire salary at the same time as running the household and driving the kids everywhere? Would they keep their job or need to drop some hours in order to keep the family running?
- Who is going to pay for the everyday things like petrol, groceries, medical costs? These are the day to day things that we tend to take for granted.
- On top of that, could the breadwinner continue to work and support their sick partner?
This is where trauma cover comes in, providing a lump sum when you suffer a critical illness. If you had a pay-out that covered a year’s salary for example, would that be enough to take the stress away and allow you or your partner to recover?
Please talk to our insurance advisers about how the range of trauma products may help. The premium is lower than you may think.