What Is Trauma Insurance

Trauma covers are often referred to as critical illness plans since these plans offer financial support to the policy holder when he is critically ill. Critical illness plans protect not only the policy holder but also his dependants and immediate family. This type of life insurance plan pays one lump sum compensation payment that is usually pre-decided by the insurer and agreed for by the policy holder.

The payout will be influenced by both the cover amount and the type of illness that affects the patient. This payout is meant to help both the policy holder and his family, this payout can be used to keep the patient comfortable if he has a limited time to live, or it can be left behind by the policy holder for his family to keep them comfortable.

Once the claim is approved by the insurer, the amount is given to the patient in a few days; insurers understand that in such situations time is of the essence and they try their level best not to delay or reject claims.

Compensation payment

The compensation payment can also be used by survivors of certain illnesses to help them get back up on their feet. If alterations need to be made to the survivor’s house or vehicle, then this compensation payment can be used for this purpose as well.

Survivors can use the compensation payout to start a small business, pay for rehabilitation expenses in case of severe trauma or use the money in any other constructive way to help them re-build their life.

Risk factors

Various risk factors are taken into consideration by the selected insurer before the insurer decides which cover is ideal for the buyer and how much to charge towards premiums. Age, sex and occupation are a few of the important factors that will be considered by the insurer; however the medical history of the buyer is one of the most crucial factors that will determine the eligibility criteria of the buyer.

Lump sum payment

The lump sum payment is given to the policy holder when a medical professional diagnosis the policy holder with a mental condition such as Alzheimer’s or with a physical condition such as stroke. Alternately, if the policy holder successfully recovers from an illness such as cancer, then he may be given the compensation payment.

 

3 Myths About Trauma Insurance

  • The most common myth about trauma protection plans is that, this plan protects the policy holder only if he is in perfect shape while he purchases the policy. This is not true, since majority of the insurers in Australia, provide affordable protection plans to people with one or two pre-existing health conditions. The premiums however; will depend on the severity of the condition and the medicines the buyer takes to control these pre-existing health conditions. Insurers in Australia understand that diabetes is a real threat and thousands of people are diagnosed with this condition on a yearly basis. Due to this reason, buyers with diabetes are not exempted from applying for these policies especially if their condition is in control and they take the required medicines to control the health problem.
  • Another common myth about critical illness plans is that, buyers who smoke cannot purchase these plans and once a buyer smokes he is deemed unsuitable for affordable insurance. The truth is that, buyers who smoke at the time of applying for the plan, will be considered as high risk candidates; however they will be eligible to get trauma protection provided they are ready to pay high premiums. Buyers who have decided to improve their health and have quit smoking for at least 12 months; or who smoke a negligible amount are considered to be non smokers. This implies that the insurer will give these buyers a quote that is usually affordable and fair. The final quote will depend largely on the buyer’s medical history but non-smokers or people who have successfully quit smoking for 12 months or more can expect a non-smoker’s discount.
  • Most people believe that critical illness plans should be purchased by those who have young dependants or have elderly parents. While these plans tend to help people with families that depend on them; the truth is that these plans are a must for any individual who wants the backing of an insurer in case they are diagnosed with a critical illness, need help to pay the hospital bills or need money after they survive the illness.

 3 Benefits of Trauma Insurance

  • The basic benefit is the one time compensation benefit that can range from $100,000 to $500,000 or more. This benefit will be given to the policy holder when a claim is filed provided that the waiting period is not active and that the premiums have been paid in full. Rejected claims are often a result of lapsed policies due to non payment of premiums and lapsed policies due to hiding information from the insurer.
  • Cheap premiums, premium discounts, complimentary or cheap add on plans and a non-smokers discount are some of the many benefits buyers can get by opting for a trauma protection plan from a reputed insurer. Reputed insurers pay benefits in full and offer a range of additional benefits to those policy holders who co-operate, provide the required details without hiding information or omitting facts.
  • An additional death benefit may be offered to buyers who are eligible. This death benefit may be offered for no cost to buyers of premium policies or to buyers for an additional fee. The death benefit will pay a lump sum payment to the family of the deceased provided that the claim has been filed in full, all required documents are submitted and that the claim has been filed within the specified dates.

 

 

 

 


  Income Protection Life Insurance

 

Related reading about trauma insurance

Trauma Insurance vs Health Insurance
Financial security can be guaranteed by personal insurance
Superannuation and Trauma Insurance
Important Terms of Trauma Insurance Plans