Despite our increasing life expectancy, most Australians will still suffer a variety of medical illnesses and conditions throughout their lives.
For example, by the time a woman reaches 40, her chance of being diagnosed with coronary heart disease is one in three, with the chances increasing each year. For a male, the likelihood lifetime chance of one in two begins at age 40.
One way of putting your concerns at rest is to take out a trauma insurance policy as part of your health or life insurance policy. Trauma insurance (more commonly known as critical illness insurance) covers new and advanced medical procedures that have improved survival rates for those who have suffered a serious medical condition, such as a stroke or heart attack.
Trauma insurance can be an important form of coverage to have as a standalone policy or to combine with your existing life insurance policy. If a person suffers medical trauma, an existing life insurance policy won’t provide protection for loved ones as the person is still alive.
Most trauma insurance providers will provide a lump sum payment in the event a policyholder is diagnosed with one of many medical conditions classified as ‘medical trauma’. The payment is lower than that of a life insurance payment as its purpose is to help prevent financial stress during the recuperation period.