Trauma Cover

Is not something we like to think about?

Especially if we feel fit and young, many of us don’t often think about the financial consequences of what we would face if we were seriously injured, or had a severe and debilitating medical condition. There are many reasons for this. Firstly, it’s just not a pleasant subject to ponder on as we rush around our modern lives trying to earn a living and still enjoy our limited leisure time! The demands and responsibilities of family and career can promote somewhat of an “I’m invincible!” mindset, just to be able to get everything done, and the last thing on our minds is: what if for some reason I just physically or mentally couldn’t fulfil my normal schedule? Especially, what if I could no longer earn a living?

Don’t think it couldn’t happen to you?

Often the people that these cataclysmic life events happen to can end up somewhat hidden under the radar. They are no longer in the workplace, or out on the streets. They are in their homes, in hospital, or in rehabilitation facilities recovering. So, the incidence of life changing trauma is not really visible and accurately represented to us on a day-to-day level.

It only happens to older people?

Added to this, many of us fall into the trap of thinking that trauma happens in large part to older, retired members of our community? Again, this is a fallacy. Did you know that one in two Australians will get some form of cancer in their lives? Or that, according to the heart foundation, heart disease is the leading cause of death in this country? And yes, statistics show that it is more prevalent as people age; but the young and middle age can still be affected. The reality is that people that die from heart attacks often leave behind dependents. If they don’t die, there is a very strong chance they will experience some form of permanent incapacity. Trauma cover can help ensure financial stability is maintained throughout all these events.

Tragically trauma events can also happen to children.

Traumatic injuries, or life-threatening medical conditions, are the last thing we want to ever have happen to the youngest and often most physically vulnerable members of our community as any parent who has experienced this type of event will attest. The consequences of paying high, ongoing medical costs for children without medical insurance, or the many lost work hours and lost income that comes with caring for a recuperating or permanently injured child, can be financially devastating. Again, trauma cover can help to ease this burden.

Four key points

Trauma insurance gives you a lump sum of cash if you suffer a traumatic condition covered under the PDS. It will also help to offset medical and rehabilitation costs.
In the case of an incapacitated child or an elderly relative, if a family member who was a wage earner, now has become an unpaid carer, the lump sum payout can also serve to replace their lost income.
The most common causes of illness that trauma insurance covers are: heart attack, stroke, cancer and coronary heart disease, and these can occur at any stage of life.

Because of its lump sum payout nature, trauma cover can offer more comprehensive cover than income protection in times of emergency.

Exactly what costs might a trauma cover payout help you with?

Medical and rehab costs.
Day to day living expenses if you are the injured or sick person and no longer able to earn a living. Or if a child or elderly person is affected, and you or another wage earner in the family has to give up work to care for them.
Mortgage repayments.
At home nursing and rehab.
Changes to your home, workplace or vehicle due to physical incapacity.

Finally, are you comfortable with what your answers would be to the questions below?

How stable is your financial base right now to deal with an injury or medical emergency to a member of your family?
How much in easily accessible cash funds do you have on hand?
Would you be eligible for workers compensation or Centrelink payments if you were unable to work?
Does your current health insurance cover out of pocket expenses for surgery, hospitalisation, and intensive care?
Could you still cover your mortgage repayment costs if your income, or the main breadwinner in your household’s income ceased tomorrow?
Do you have any other significant loans that you would struggle to cover if you lost income tomorrow?

If you’re not totally comfortable with your current answers to these, or if you simply would like more info around Trauma insurance in general, please contact one of our friendly consultants here at SMFS Insurance Partners on (07) 30640413, or leave a message on the contact section of our website.

References:

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Heart Foundation, Australian Heart Disease Statistics, August 2020Cancer Council, Cancer Statistics in Australia, August 2020