What is Trauma Insurance and Terminal Illness cover?
Life insurance is always good to have, but many people have not heard of trauma insurance. This type of coverage will offer you a sum of money if you become diagnosed with a condition that is listed in the particular policy you have purchased. This type of insurance does not mean that you have to pass away to receive a payout. The coverage will help you to pay for anything you need to improve your life, whether it be to cover your daily expenses, pay medical bills and medicine or to make renovations to your home to make it easier for you to get around. It is not easy to think that one day you may be diagnosed with a life threatening disease, but in the case you are, you will be able to provide yourself with an income.
Trauma insurance is also referred to as terminal illness coverage. Every policy is different, so the types of traumas or illnesses covered should be reviewed thoroughly before making the decision to purchase. You cannot take out this type of insurance if you already have been diagnosed with a disease, however, if you already have coverage and are diagnosed with an illness that is detailed in your trauma insurance policy, then you will be paid a lump sum of money upon diagnosis and confirmation of the disease. There are many common conditions that are covered such as strokes, heart attacks and cancer. Other common illnesses or traumas that may be covered under your policy include:
• Alzheimer’s disease or dementia
• Severe burns
• Coma
• Deafness or blindness
• Chronic liver disease
• Quadriplegia and paraplegia
• Cardiac arrest out of the hospital
• HIV occupationally acquired, accidental infection
• Benign brain tumour
• Chronic lung disease
• Motor neurone disease
• Parkinson’s disease
• Aortic surgery
• Multiple sclerosis
• Chronic kidney failure
• Major head trauma
• Terminal illness
• Loss of speech
Trauma insurance was introduced into Australia in 1986 because it was thought that a serious illness or trauma could be just as devastating to a family as death so it should be an insurable circumstance. Trauma insurance helps those who have been seriously injured or dealt a hard hand with a terminal illness and are unable to return to work or carry out their normal activities. Claims can be denied normally for causing self injury to one self, claiming insurance from an illness that is not insured according to the policy, not informing the insurer of a pre existing condition, a claim made before the waiting period ends and/ or committing suicide within 13 months of the policy.
An important part of life is knowing that you and your family will be taken care of during the tough times. As a result, many policies will also allow you to add a death benefit to your coverage in the case that your illness or trauma proves to be fatal. This added benefit to your trauma insurance will make sure that your family is well taken care of.
Medibank Private is Australia’s largest private health insurer and now offers flexible life insurance that can be tailored to your needs.
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