What Is Trauma Insurance Cover?
Finding out that you have a life-threatening disease such as cancer or stroke can be heartbreaking.
Unfortunately, such a terminal illness does not only cause you and your loved ones physical and emotional turmoil, but it can also drain you financially.
Fortunately, trauma insurance can help.
In case you’re diagnosed with a serious medical condition, a trauma cover takes care of your financial needs so that you can concentrate on what’s important – recovery.
But what is trauma insurance, and why do you need this cover?
What Is Trauma Insurance?
Trauma cover also known as the critical condition or crisis cover is a health cover that gives you a lump sum payment once you’re diagnosed with any of the life-threatening conditions or injuries covered in your policy.
For your claim to be successful, you must have survived for at least 14 days after being diagnosed with the covered illness or injury.
Although the medical conditions covered by trauma insurance may vary from one policy to another, some of the critical illnesses and injuries often covered by this policy include:
- Cancer
- Stroke
- Major burns
- Paralysis
- Organ transplant
- Heart failure
- Stroke
- Alzheimer’s disease
- Kidney failure
- Motor neuron disease
- Coma
- Aplastic anemia
- HIV
- Limb loss or paralysis
- Severe diabetes
Types of Trauma Insurance
Trauma insurance often comes in two types, standalone and accelerated. Let’s look at the differences between these two trauma insurance covers.
Standalone cover – This is a cover that stands on its own, and it doesn’t affect any other insurance benefits you might have, including your life insurance benefits. With this cover, when you’re diagnosed with any of the conditions listed in your policy, you are paid out the lump sum from this cover, which means your other insurance benefits aren’t affected.
Accelerated cover – Also referred to as linked cover, the accelerated cover is linked to your life insurance. If you make a claim, and you get paid, the amount is deducted from your life insurance benefits. Linking your trauma cover to your life insurance can help reduce your monthly premiums. However, there are also implications of linking your policies as once you make a claim, your life cover policy will reduce by the amount paid out.
Notably, you can choose to buy back or reinstate your trauma cover after getting a payout. But reinstatement which is allowed for both standalone and accelerated covers only occurs 12 months after your initial claim. Also, a reinstated policy will not cover you for the same illness that you have already claimed. However, it will cover you for other illnesses listed in your policy.
You can also choose to add a child trauma cover to your cover. This means that once your child is diagnosed with a critical injury or medical condition, you’ll get a lump sum payment to help with your child’s illness.
How Much Trauma Insurance Should I Have?
Your trauma insurance policy provider will give you a chance to determine the level of your cover based on your personal circumstances.
The professional advice we can give you is that you take your time before choosing the amount of your trauma cover. This will give you enough time to think about how much money will be enough to sufficiently cover you in the event you get sick, and you’re no longer able to work.
When coming up with the trauma cover amount, think about your dependents and consider if the amount would be enough to cater to their financial needs. For instance, consider if the amount can cover the loss of your partner’s income if they were to stop working to take care of you?
Additionally, consider if the amount can cover your recuperation, medical care costs, and any other debts you might have.
Notably, your trauma insurance monthly payment may also be affected by factors such as
- Gender
- Age
- Type of cover
- Occupation
- Smoker status
Is Trauma Insurance Worth It?
Yes, trauma insurance is totally worth it.
The knowledge that you and your loved one’s financial needs are covered when you’re diagnosed with a serious medical illness will give you the peace of mind you need to get better.
Why Should You Get It?
If you suffer from a serious medical condition, and you don’t have trauma cover, your and your loved one's savings may be depleted due to all the financial costs that come with a life-threatening condition. You may also be forced to sell assets or get loans to help cover the costs.
Besides, recovering from a serious injury or terminal illness takes time, and this can place extra financial stress on your already strained finances.
This critical illness insurance does more than cover the cost of your treatment during your recovery period.
This cover also helps:
- Replace your income if you’re no longer able to work
- Pay for your spouse to take time off from work and take care of you or give you the support you need
- Cover medical costs and other expenses related to your recovery such as travel, caregiver, rehabilitation, and childcare costs
- Allow you to take leave from work so that you can recover from the injury or illness
- Pay for additional checkups and treatments that may not be covered by your health insurance
- Allow you to go on a vacation or family holiday to rest and spend time with your loved ones after a stressful situation
- Cover any other debt you might have, including mortgage or credit card payments
- Provide you with the financial flexibility you need to maintain or change your standard of living
Conclusion
In closing, when you’re diagnosed with a serious illness, it can be a stressful time for you and your family.
Fortunately, when you have trauma insurance cover, you need not worry about medical bills and other expenses.
Trauma insurance ensures you have some money available to cover all your financial needs and even treat you and your family to a nice holiday.
At Vega Protect, we offer different insurance covers, including trauma insurance cover. If you have any questions related to any of our insurance products, we’ll be happy to answer them.
It’s easy to reach us. Contact us here and a financial advisor will get in touch with you and offer you personalised advice on any issues you might have.
