This type of insurance is commonly known as Trauma cover, Critical illness cover or Recovery benefit cover. The point to this very insurance is that is pays out a lump sum in the event of critical illness – such as cancer. This cover can help pay the extra cost of medical bills, pay off debt and assist you through what would be a trying time even without the financial burden.
Something you may not know is 1 in 7 Australians will suffer from critical illness. But what if you have private medical insurance? Even with Medicare and private health cover there are still gaps and out of pocket expenses that need to be considered. The benefit is paid in a lump sum so you can get the immediate treatment you need without waiting….hence buying the best treatment you can.
Trauma policies tend to have a high rate of claim; this vindicates the alarming statistics on the likelihood of Australians suffering from a critical illness or trauma event. It is important to note that like TPD cover you can link Trauma/critical illness cover to your life cover, or you can have it as a standalone policy (in other words it is a policy on its own).
Here is a list of some of the typical conditions that are covered under trauma cover – please not this can vary from one policy to another so it is important to check the PDS when taking out a policy.
- Alzheimer’s disease and Dementia
- Aplastic anaemia
One third of women and a quarter of all men will suffer cancer at some stage in their lifetime – over half of whom will live for longer than five years afer diagnosis (Cancer Council Australia)
- Chronic liver failure
- Chronic lung disease
- Chronic renal failure
- Creutzfeldt-Jakob disease
- Heart attack
- Major burns
- Major transplant surgery
- Loss of independent existence
- Permanent blindness
- Permanent loss of speech, hearing or limbs
- Major Cardiovascular disease
- Major neurological disease (other than stroke)
Please be aware this is a basic list to give you an idea of what can be covered under Trauma/critical illness cover – to get a more comprehensive idea it is important to read a PDS.