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Trauma Insurance, also known as ‘critical illness’ insurance or ‘recovery’ insurance, covers you if you’re diagnosed with a specified insurable illness or injury. Typically paid as a lump sum, it provides financial assistance to access medical treatment, and may help pay for your rehabilitation, and reduce your work hours to help you focus on your recovery. Specific costs during a recovery period can include:
Exactly what your Trauma Insurance covers will depend on the particular policy that you choose. That said, common types of illnesses or events you can generally claim against can include:
Everyone’s situation is different, but here are a few basic questions to ask yourself when considering Trauma Insurance.
If you have kids or other family members who rely on you, Trauma Insurance could help look after their financial wellbeing should you suffer from a severe injury or illness.
If you have ongoing financial obligations, Trauma Insurance could help you continue making payments while you recover.
If you don’t have enough savings to cover large, upfront medical expenses, Trauma Insurance could be a wise decision.
A good starting point is to consider how much income you and your family need for everyday living. If paying unforeseen medical bills would cause a significant shortfall, Trauma Insurance could provide peace-of-mind.
In the event of an unexpected major illness, you might be able to get support from family or friends. But be realistic when considering this option. Situations can change and people may not be in a position to help when the time comes.
Depending on your job or your illness, you could receive support through other means. It’s beneficial to look into your eligibility before taking up Trauma Insurance.
When applying for Trauma Insurance, you’ll typically be required to tell your chosen insurer anything that could affect their decision to cover you. This information could include parts of your medical history.
If you don’t provide them with all the requested information, they may reject your application. It could also have a negative impact on any future applications for trauma insurance. More specifically, failing to properly disclose any required information to your insurer could result in having any future claims denied, and your policy voided by the insurer.
Also note that if anything happens before your application is complete that could affect the outcome, you must let your insurer know.
As part of your application for trauma insurance, your insurer may request a medical assessment or medical reports provided by a doctor.
Insurance quotes take into account lots of different factors—things like your job, family illness history, smoking habits, and chosen cover amount—so costs are calculated on a case-by-case basis.
Once you’ve selected your cover, you’ll need to decide how to pay your premiums. Generally, you can choose between a stepped premium or a level premium.
Stepped premiums are generally cheaper from the outset than level premiums but they increase annually. The amount you pay can depend on factors like your age, and the type of policy you selected. Before opting for a stepped premium, consider the yearly rises to make sure you can afford the policy moving forward.
Level premiums generally stay the same over time, and only increase when your insurer raises their premium rates, which an insurer may do from time to time. While these rises are generally less than the annual price increases with stepped premiums, you may pay more from the outset.
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