Introduction:
Trauma insurance can protect you if you suffer from a major medical event. If you are diagnosed with an illness such as cancer, you may require time off work and be treated by the best available doctors, which can come at a huge financial cost. Wouldn’t it be nice to have access to a lump sum of money to replace income if you cannot work, help cover medical expenses, or allow you time to recover and be with your family?

The Role of Trauma Insurance:

Even if you have income protection insurance, it is still important to insure yourself for trauma insurance as income protection only pays a proportion of your current income. Additionally, you may need extra money to help pay large medical bills or other expenses.

Can It Happen to You?

Don’t think it can’t happen to you? Look at the statistics on just one area of illness – cancer. An estimated 162,163 cancer cases were expected to be diagnosed in Australia in 2022. The estimated top five cancers in Australia in 2022 were breast, prostate, melanoma of the skin, colorectal, and lung cancers【Source: Cancer in Australia statistics, Australian Government Cancer Australia website, viewed May 18, 2023】.

Trauma Insurance for Children:

Trauma insurance should also be considered for children once they reach age two. If your child suffers a major illness or injury, either you or your partner will most likely want to take time off work to be with and care for your sick child. Your child may require surgery, hospitalisation, and further ongoing treatment. These expenses can mount up, and you may be earning less income if you can’t work.

Without covering a child for trauma insurance, your entire family may be subject to financial difficulties. For example, how would you continue to pay your mortgage repayments and other expenses such as schooling, power bills, and groceries if you are no longer working?

What Action Should You Take?

Although the chances of contracting cancer are relatively high, the good news is that the chance of surviving at least five years is 70%. But during this time, you may face significant additional costs and disruption to your financial plans. Similar stories apply to other illnesses. So insurance has a role in reducing the worry caused by financial difficulties【Source: Cancer in Australia statistics, Australian Government Cancer Australia website, viewed May 18, 2023】.

Speak to your financial planner today to review your insurance needs. Your planner can recommend the types of cover you need and how much you need to be insured for. The range of policies and features on each policy can vary widely. An expert can help you navigate through the maze to get the cover you need.

The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.