Why women should consider critical illness insurance (trauma insurance).
There are many different types of insurance covers that are considered important for women these days. With women playing a more active, and prominent role than ever in society these days in terms of their responsibilities, taking precautions against financial pitfalls has become more and more important.
Women do everything from raise families and look after the home to hold down demanding yet lucrative jobs to support themselves and their loved ones. This is why an increasing number of women are now protecting themselves and their loved ones with protective coverage such as life insurance cover, income protection cover and critical illness cover (also known as trauma insurance).
Having some form of protection in place can prove hugely invaluable if you are a woman and do not want to leave yourself and your loved ones financially high and dry in the unfortunate event that you are diagnosed with a critical illness. Of course, insurance cover cannot protect you against becoming ill but what it can do is protect you against the full financial impact that a critical illness can bring with it. Removing the financial burden can come as a huge relief, enabling you to focus on your health and well-being rather than make matters worse by stressing out about money.
What can trauma insurance provide for Australian women?
Trauma insurance for women is a type of insurance coverage that is designed to pay out a lump sum if you are diagnosed with a serious illness or condition that is listed on the policy details, such as cancer or heart attack. The money that you receive from this payout can really help to ease the strain for both you and your loved ones.
Is critical illness a concern?
While women statistically have a longer life expectancy than men, they are just as much at risk of falling victim to serious illnesses and health problems. There are a number of health problems that can specifically affect women, such as breast cancer and cervical cancer.
However, there are also some serious health problems that can affect both genders but of which women are at a greater risk of, such as heart disease. According to health reports, blocked arteries, which are a major cause of heart problems, are more difficult to spot in women than they are in men. Because of this, women are four times more likely to die of heart disease than breast cancer, making it the no. 1 killer of women in Australia (Heart Foundation, 2013).
Women are also at risk of being affected by autoimmune diseases, which are diseases where the immune system attacks the body and tissues, either destroying or altering them. There are more than 80 serious and chronic autoimmune diseases which include Lupus, Multiple Sclerosis, and Diabetes Type 1. According to American Autoimmune Related Diseases Association (AARDA), autoimmune disease cases affect 75% of women.
Since no woman can ever tell whether or not they will be affected by serious conditions, it is important to take precautions to provide financial protection for the future. Being afflicted with a condition such as these can have an effect on many areas of your life, such as your ability to work, your ability to care for your young children if you have a family, your ability to look after the home and more. On top of this, you have the worry of trying to focus on your recovery whilst trying to cope with the problems that come with being diagnosed with a serious health condition or illness, which can pile on even more pressure.
Some of the benefits of critical illness insurance cover
There are many benefits that come with having critical illness insurance cover as a woman, so this is a type of protective insurance cover that women should seriously consider, particularly those who have a lot of financial commitments or who have partners and families.
Some of the benefits of having this type of cover in place include:
- Peace of mind - Although we all hope to avoid falling victim to critical illness, having this cover in place means that you have the peace of mind that in the event you do suffer from such an illness you will not be left struggling with your finances as well as your health
- Coverage for lost wages - If you are one of the main, or perhaps the only wage earner in the household, a serious illness or health condition can mean that you are unable to work and earn, at least for a while. The payout from your trauma insurance means that you can cover the lost wages and continue meeting your financial obligations, which means that there is one less thing for you to worry about.
- Cover additional costs that may arise - If you normally look after your young children, you may find that your health problems result in another wage earning member of your family having to take time off to look after the kids. It may even mean having to hire additional help to look after the kids. Your payout can help to cover these additional costs.
- Cover treatment and medical costs - If you have to have ongoing treatment, you may find that the costs mount up. You may also find that the state of your health means that you have to make changes to your home, such as adaptations to cater for your needs. Your payout can help to cover these costs, which means less strain on you.
What women should consider when comparing critical illness plans
When you are looking for a critical illness insurance plan, you need to make sure you compare a range of plans and providers, as the cost of cover as well as the level of coverage can vary. You also need to know which key areas to compare.
- The cost of the plan - You should compare the cost of cover so that you can ensure you are able to afford the premiums on the cover. Failure to meet the payments on your cover could invalidate your insurance, so you need to be able to keep on top of the premiums.
- The level of coverage - You need to make sure you compare the level of coverage you get with the various plans you are considering. This is important to ensure that you will end up with adequate cover and will not end up under insuring.
- What is and is not covered - It is very important that you check the various plans to determine which illnesses are and are not covered. You should also look at the small print so that you familiarise yourself with any exclusions and restrictions on the plan.
With trauma insurance in place, both you and your loved ones can benefit from increased peace of mind, as you will have the reassurance of being financially covered in the event of one of these serious health problems. Of course, when you take out the coverage, you should make sure you check what is and is not covered as well as the level of coverage that you get. You can then determine the suitability of the plan for your needs.
Frequently asked questions about trauma insurance for women
Q. How much trauma insurance cover do I need?
- A. There is no generic formula for working out exactly how much trauma insurance cover you need. Insteadyou will need to consider factors such as:
- The income you will need to replace, including your current and future earning capacity
- The number of dependants you have
- Whether you have a mortgage and/or other debts to pay off
- Other ongoing expenses
- Any assets you own, such as property or shares
Q. Is trauma insurance for women different to trauma insurance for men?
- A. No, the cover provided by trauma insurance for women is exactly the same as that provided by trauma policies for men. The only variation is that premiums may differ based on your gender.
Q. Is trauma insurance available through super?
- A. Yes, Australian superannuation funds have been allowed to offer trauma insurance to their members since July 2014.
Q. What factors affect the cost of trauma insurance for women?
- A. The cost of cover is affected by a number of factors, including your age, gender, smoking status, and your medical history.