Life insurance comes in many different shapes and sizes. Insurances such as TPD cover you for permanent disablement while income protection pays you a benefit when you become unable to work because of an illness or injury.

Trauma insurance is also known as critical illness insurance because it provides a lump sum payment when you have or are diagnosed with a critical illness, like cancer, stroke, and heart disease.

Trauma insurance does not wait for your demise before it pays you a benefit; therefore it falls under the category of ‘living’ insurance, because it provides you with benefits while you still have a quality of life to enjoy and make use of the benefit payouts.

Considering the most commonly claimed types of illness in trauma insurance, many are led to believe that it is only for the elderly. However, statistics have shown that the average age of a trauma claim is in fact 42 years old.

What Does Trauma Insurance Cover?

The types of illnesses or sicknesses trauma insurance cover may vary from provider to provider. However, most of the main conditions are similar, such as heart problems, cancer, and stroke. Other medical conditions may include quadriplegia, loss of limbs, and head trauma. Moreover, insurance providers usually cover 30 to 50 types of traumatic events.

On the other hand, there are some types of illnesses which trauma insurance does not cover. These are illnesses which are considered not to be life threatening even if they fall categorically as cancer – an example of this is skin cancer.

A broken leg which is supposed to heal within 6 to 8 weeks is also not considered a trauma claim. In other policies, it can be added as a separate add on. It is then very important what your insurance policy covers as not all trauma policies are alike.

Why Do You Need Trauma Insurance?

Those who are aware of Trauma Insurance know that it pays you a benefit when you are diagnosed with a type of critical illness. The benefit paid can be used in any way you deem necessary.

Although most will still argue that the life expectancy is rising and health is improving due to the advancement of medical science, statistics have shown that there is still an increase in the number of people who are afflicted by different types of cancer, heart diseases, and even stroke. With the quantity of such cases rising, so is the possibility of experiencing trauma in one point of your life.

Moreover, with a lot of breakthrough medicines and discoveries, it is possible for you to recover, medically speaking. But the question is what about your finances? Having critical illness is no walk in the park – the expenses it could incur can be significant and ongoing. It could send an average family into a lifetime of debts. Your health insurance and employee benefits can only do as much.

Even if one spouse is working, whatever income they are earning would go to the other expenses, such as day-to-day expenses and monthly bills, to keep the family afloat.

Having trauma insurance, then entitles you to a number of benefits which you may not have access without it. Perhaps, the most important benefits that trauma insurance can give to the insured and their families is their power to choose, which can be difficult in a time where the illness could incur extra expenses.

For one, you have the choice to access the best medical treatment and services that money can buy. Just imagine if you don’t have trauma insurance to do that. The stress and burden might be too much for your family.

You can use it to alleviate financial stress brought about by additional medical and rehabilitation expenses due to the illness. It eases the impact of what is certainly going to be a stressful time for you and your family. Moreover,     the lump sum you receive can also be used as payment for short-term debts, like credit cards, cover lost income, and give you access to the best possible medical care available.

Second, it gives you the choice to spend quality time with your family without having to worry about the costs. In some cases where the illness is considered untreatable or the chances of survival are slim, the money can be used to fund family holidays and dream experiences. While it may seem inconsequential at first look, the holidays would give the family time to spend time together and create good memories. It also allows the family member suffering from that critical illness to have the quality life during his final months.

Finally, you can choose to have your spouse to take time off from work without worrying about the income. When you have been stricken with critical illness, there is a big probability where you need to get extra care. Trauma insurance will allow you to get the assistance you need in managing your household while you are under rehabilitation.