Trauma Insurance Is About Survival

Aussies are suffering an increasing incidence of cancer and we are still experiencing high levels of heart disease and stroke. Due to advances in medical science, we have greater chances of surviving a serious medical condition. In many cases this survival period can be measured in years.

It is important to understand that where in the past a serious medical condition often led to swift death, this is no longer the case – with consequential effects on lifestyle, family and work.

Whilst many people make some sort of medical recovery, the likelihood of making a financial recovery is less certain, especially if you are unable to continue work with your current employer, or forced to stop work completely for medical reasons. This is where Trauma Insurance can help.

What is Trauma Insurance?

Trauma Insurance or Trauma Cover, is also known as critical illness insurance, sickness and accident insurance, and living assurance. It pays a lump sum in the event of a specified medical condition, regardless of whether you are prevented from working or not. These ‘medical conditions’ may vary from insurer to insurer, but nearly most will cover cancer, heart disease and stroke.

Trauma Insurance is available on its own (stand-alone trauma), or in conjunction with Life Insurance.

Trauma Insurance Is About Survival

Basically, it pays a lump sum not because you are going to die, but because you are going to live. Generally, for a trauma insurance policy benefit to be paid, the insured must survive for 14 days after being diagnosed. Figures show that there was a significant increase in relative survival after diagnosis of breast cancer (‘82- ‘86 to ‘98- ‘04) from 71% to 87% (1).

Trauma Insurance can make a significant contribution towards the financial survival of families and businesses by providing you with cash to use as you see fit. As such, it can alleviate financial pressure in a period of intense shock and trauma, giving you and loved ones time to adjust to the crisis and rethink your future.

You May Need Trauma Cover If You:

    * have a mortgage
    * have credit card debt or any other debt
    * have a family and associated responsibilities
    * have a business or business partners
    * are a company director, key employee or self-employed
    * have insufficient cash reserves to cover unexpected medical and hospital bills

What Are Your Chances Of Suffering A Critical Illness?

    * Females have a one in four chance of suffering a critical illness between ages 30 and 64 (1)
    * One in four women will contract cancer before age75 (2)
    * In Australia each year, about 700 women under the age of 40 are diagnosed with breast cancer (3).

How Much Can Critical Illnesses Cost?

The Cancer Council of NSW estimates that women who are diagnosed with breast cancer can expect to incur more than $40,000 in lost productivity and other out-of-pocket expenses during their period of treatment.

You can get affordable trauma insurance to cover critical illnesses such as cancer. Contact xLife to find more or to receive a free trauma insurance quote.

Source:
1 General Cologne Life Re Australia, 2002
2 AIHW and Australasian Association of Cancer Registries, Cancer in Australia 2001, 2004 3 Statistics and research: Breast cancer statistics in Australia, www.breasthealth.com.au/statisticsresearch/, 2009There are a few factors you should consider before choosing the right life insurance policy for you.

Disclaimer:

This article is not designed to provide personal financial or investment advice. The information provided is general in nature and does not take into account your particular investment objectives, financial situation or investment needs. We recommend that you speak to an xLife specialist financial Adviser before you make any decision regarding life insurance and trauma (critical illness) insurance. The statistics and figures presented in this report are based upon historical data, obtained from external sources. There is no guarantee or suggestion that markets will behave as they have in the past. Future results will be affected by political & economic events. Information is not directed to any particular persons investment financial objectives. Therefore, you must seek advice tailored to your individual circumstances before making any specific decisions. xLife Pty Ltd ASIC No. 305213 is a Corporate Authorised Representative of Milennium3 Financial Services Pty Ltd ABN 61 094 529 987 AFSL No. 244252