Receive cover for up to 50 different serious medical conditions including breast cancer, heart attack and diabetes with trauma cover.
Being diagnosed with a serious illness can be devastating for your and your loved ones, not only emotionally but also financially. Trauma insurance, also known as critical illness insurance, is designed to help you cope with the financial burden of illness and injury, providing a lump sum benefit when you are diagnosed with or suffer from a serious condition such as a heart attack, cancer or stroke.
Trauma insurance is something every Australian over the age of 30 should consider taking out, including women. Let’s take a closer look at the protection provided by trauma insurance for women and how it can benefit you.
How can trauma insurance provide support to women?
Trauma insurance for women provides a lump sum payment when you suffer from or are diagnosed with a serious illness or injury. The actual medical events covered differ between insurers but will generally include:
- Medically - or occupationally-acquired HIV
- Intensive care
- Loss of independent existence
- Major head trauma
- Severe burns
- Parkinson’s disease
You can use a trauma insurance benefit to:
- Pay any out-of-pocket treatment costs not covered by Medicare or private health insurance
- Pay off your mortgage and meet other ongoing expenses
- Cover lost income (your own income and your partner’s if they take time off work to help you recover)
- Pay for nursing care
- Make lifestyle changes to help with your recovery, for example cutting back your working hours or making home modifications
- Take a holiday or some time off work to help you recover
Why is trauma insurance worth considering?
Trauma insurance offers a financial safety net against the unpredictability of the future. Illnesses and major medical traumas can strike at any time, leaving a huge dent in your family’s finances that you may struggle to repair. You could be faced with substantial out-of-pocket medical costs at a time when you are unable to earn an income, while your spouse may also need to take time off work to help you recover.
And while it’s easy to think that this sort of thing won’t happen to you, the fact remains that 25% of Australian women will suffer a traumatic illness between the ages of 30 and 64. With this in mind, trauma insurance could be a very worthwhile investment in your financial future, offering essential protection if an unexpected medical event turns your life upside down.
What are some of the other features to consider?
The cover provided differs between insurers, but most trauma insurance policies will offer the following features:
- Lump sum benefit. You will receive a one-off lump sum payment when you are diagnosed with or suffer from a covered trauma event.
- Death benefit. Most policies will also offer a lump sum payment to your beneficiaries if you die and a trauma benefit is not payable.
- Standalone or linked. Trauma insurance is available as standalone cover or can be linked to life insurance.
- Financial planning. Most insurers will also include an extra benefit to cover the cost of financial advice you seek to help you spend the trauma benefit.
- Optional child cover. You may also have the option of taking out trauma insurance protection for your child(ren).
How to choose a policy
In order to choose trauma insurance for women that matches your needs, you will need to consider the following factors:
- How much cover you need. You’ll need to consider your income, the number of dependants you have and your financial obligations when deciding on the right level of cover.
- Direct or with advice. You can buy insurance through a broker or direct from a life insurance provider. Buying with advice allows you to choose cover tailored to your needs, while buying direct makes it quick and easy to take out cover.
- Covered conditions. Some policies cover a handful of trauma conditions, while others will cover many more. Make sure the policy you choose has cover for a wide range of conditions. According to claims data from life insurer BT in the period from 1 October 2013 to 30 September 2014, approximately 84% of trauma claims by women are for cancer. The next most-claimed trauma events are multiple sclerosis (MS), stroke and cardiomyopathy.
- Other cover. When deciding how much cover you need, check to see what sort of cover for medical costs is provided by your private health insurer. Depending on the circumstances of your illness or injury, you may also be able to access workers’ compensation or government benefits.
- Read the PDS. Read the PDS of each policy closely to find out the benefits, exclusions and cover limits that apply.
- Compare quotes. Obtain quotes from a number of insurers to determine which offers the best value for money trauma insurance.
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.