Trauma insurance makes sure the last thing on your mind, when a tragedy like a heart attack, a stroke or accident strikes, is the pressure of paying bills. With a lump sum amount paid upon the diagnoses of selected illnesses, you are able to access the best offered medical treatment and ease off the financial burden of a traumatic event.
A case study
Fiona and her husband James, saw a financial adviser to organise their investments, and each took out $1.5 mill life and TPD cover and $500,000 stand-alone trauma insurance. At around this time they also took out a substantial mortgage to buy their first house. Shortly after a promotion to a senior post, Fiona was diagnosed with MS, a chronic, inflammatory disease that affects the central nervous system. Fiona’s diagnosis meant that she immediately wanted to reduce her working hours and level of responsibility to concentrate on her health and at the same time she recognised that if or when, the disease progressed that she would need to make further lifestyle adjustments. Fiona submitted a claim under her stand-alone trauma policy and received the full benefit of $500,000 as the insurer’s definition paid full benefit on diagnosis and not on assessment of her physical capabilities. The trauma benefit payment enabled Fiona and James to alter their lifestyle to cope with this potentially debilitating disease.