Protecting and helping families since 1985

Trauma Insurance

1. What is Trauma Insurance?
2. What conditions does Trauma Insurance Cover?
3. How much Trauma Insurance do I need?
4. How much does Trauma Insurance cost?

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1. WHAT IS TRAUMA INSURANCE?

Trauma Insurance is the payment of a tax-free lump sum of money if you’re diagnosed with one of up to 45 critical medical conditions.

More and more of us are suffering major medical conditions and due to our amazing health professionals we’re not dying from them, but our finances suffer while we recover.
Trauma Insurance
The money can be used for any purpose you like e.g. taking time off work to recover, sitting on the beach in Fiji while you recover, paying for medical treatment (if you didn’t have Health Insurance) or ticking something off your ‘Bucket List’

Trauma Insurance is also called; Vital Cover, Living Assurance, Critical Care & LifeCare.

NB; you must survive the event for 14 days to be able to claim.

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2. WHAT CONDITIONS DOES TRAUMA INSURANCE COVER?

Some policies provide an option to insure just the most common conditions (it’s cheaper) whilst some companies offer all the conditions as standard.
Most bank trauma policies only cover a basic 13 conditions.

How would you feel if you were diagnosed with one of the conditions the bank policy DIDN’T cover – and then discovered it could have been covered if you’d used an Insurance Adviser to find you the best cover?

Basic Cover Conditions;

Blindness Certain types of cancer
Coronary artery bypass surgery Diplegia
Heart attack Hemiplegia
Kidney failure Major organ transplant
Multiple sclerosis Paraplegia
Quadriplegia Stroke
Tetraplegia

Comprehensive Cover Conditions;

Accidentally acquired HIV infection Major burns
Adult onset diabetes Loss of speech
Aplastic anaemia Meningitis
Alzheimer’s disease/dementia Motor neurone disease
Angioplasty Muscular dystrophy
Benign brain tumour Occupationally acquired HIV
Cardiac arrest Parkinson’s disease
Cardiomyopathy Pneumonectomy
Chronic liver disease Pulmonary hypertension
Chronic lung disease Severe osteoporosis
Coma Severe rheumatoid arthritis
Encephalitis Surgery of the aorta
Heart valve replacement Intensive care benefit
Loss of hearing Loss of independent existence
Loss of limbs and/or eyes Major head trauma

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3. HOW MUCH TRAUMA INSURANCE DO I NEED?

Trauma Insurance

Trauma Insurance is fairly costly (compared to the cost of Life Insurance)due to the very high incidence of claims, so it’s important to only insure what you need.

Considering you will most likely survive, you need enough to cover the bills or lost wages until you return to work. Therefore we suggest insuring the equivalent of 6 months after tax income as a minimum and the equivalent of 12 months after tax income as a maximum.

You can, of course, insure any amount your budget allows !

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4. HOW MUCH DOES TRAUMA INSURANCE COST?

Trauma Insurance
Mental Health claims are the major cause of disability claims in females at 26%, and overall 72% of claims were for illnesses.
(Source: Tower Health & Life 2009)

Trauma Insurance
Accidents are the major cause of disability claims in males at 37%, this means that 63% of claims were for illnesses.
(Source: Tower Health & Life 2009)

(these are the approx prices for a person in good health)

Prices assume the benefit is “Accelerated” as part of a package.

If you earned $50,000pa and were to insure equivalent of 6 months after tax income ie: $20,000 and you are;

30 yr old male, non smoker = $1.87pm
30 yr old female, non smoker = $1.84pm

40 yr old male, non smoker = $4.31pm
40 yr old female, non smoker = $4.31pm

50 yr old male, non smoker = $12pm
50 yr old female, non smoker = $9pm

NB: These prices are indicative only. Even if you are a 40 year old male, the price can vary greatly between companies; and remember the “Acorn” guarantee to get you the best price possible and beat any written quote you already have !!

DISCLAIMER; These explanations and comments are general in nature only. You must refer to the appropriate policy document wordings for full and complete understanding.

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“When my life was turned upside down by depression, I lost my business and my husband. But thankfully Mike looked after me, helped me with my Income Protection claim, and the money I receive monthly has helped me to keep my house so my children and I have a place of our own to live together. Thanks Mike.”
– Name withheld by request

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