Do you know which medical traumas are included in your Trauma Insurance cover?
I have seen some interesting and in some instances disturbing cases of where insurance policies have failed to meet an individual’s needs.
Yes, that’s right, I’m a financial adviser and I recognise that it can happen!
It is not because the insurance itself is bad, it is because the policy may not meet the person’s needs.
Take the following scenario for example.
A young mother of two boisterous young children experiences a medical trauma and needs to make a claim to enable her to get medical treatment to recover her health.
She also needs money for childcare while she recovers due to physical limitations from her medical condition.
She has a trauma policy which she purchased online with no professional guidance to help her identify her key needs and those provided by the policy.
She is unwell and in pain, but soldiers on and completes the paperwork required to make her claim.
Unfortunately, due to policy limitations, her insurance cover doesn’t include the type of medical condition she has.
She is left frustrated and disillusioned with the value of insurance, while having to recover her health with limited resources and no money for childcare.
This mother of two thought she was doing the right thing in purchasing insurance and it was certainly a step in the right direction.
However, taking the extra step to seek advice from a financial adviser would have helped her match the cover to meet her needs.
There are two alternatives when purchasing insurance
- Purchased online, without advice
- You determine the quality and quantity of the cover and take full responsibility for your choice
- Under the advice of a Financial Adviser
- Your needs are assessed
- The correct policy is sourced to meet your needs
- You have full disclosure of policy inclusions and exclusions
- You are providing understanding of the options to purchase using a stepped or level premium
- You understand and have support throughout the claims process
Obtain the best advice to make the right decisions.
What is Trauma Insurance?
Trauma insurance is a unique cover that provides a payment on diagnosis of specified illness or injury.
These include major illness or injuries such as cancer or heart attack, which will make a significant impact on a person’s life.
I call it medical catastrophe insurance.
The payment is tax free and is independent of private medical insurance you may have.
It is not offset by the rebate from medical costs.
The idea of Trauma cover is to provide an income stream or lump sum benefit that is accessible during medical treatment and the recovery period.
Trauma insurance should be set up to cover
- Initial and ongoing treatments
- Specialist transport costs
- Adjustments to housing and lifestyle changes
- Debt repayments
- Family care requirements such as childcare
6 Important factors to consider
- The level of cover you need
- Other insurances you currently hold
- Income required to maintain your lifestyle in the event of a claim
- How are you going to pay the premium? (Stepped or Level Premiums?)
- Is support available to assist you at claim time?
- Full disclosure of existing medical conditions (This can affect your ability to make a claim if you have an undisclosed past history of a medical condition)
Talk to a financial adviser to have financial solutions tailored to meet your individual needs.
