The Facts About Trauma Insurance
"That won't happen to me."
Maybe you're right, maybe it won't happen to you, but we don't take out car insurance because we know we are going to have an accident, do we? We take out car insurance because we know that accidents do happen and we would rather be safe than sorry. Trauma Insurance (also known as critical illness insurance) is exactly the same, it's the 'car insurance' for our Life and for those we love.
Take Nicola for example who is a 35-year-old single mother of two. She owns a 2000 model Holden Astra and pays $965 per year for comprehensive car insurance. She also has a Trauma insurance policy for approximately a $200,000 lump sum and pays a premium of $500 per year.
If Nicola has a car accident, it might cost $10,000 to fix the car but if it's a serious accident what will it cost for her family to help raise her children while she's in rehabilitation? Consider the following comparison of statistics in Australia between claiming on a car insurance policy versus a trauma insurance policy:
- 1 in 15 chance of having a car accident, whereas there is a 1 in 4 chance of dying from heart disease
- 1 in 159 chance of having your car stolen whereas there’s a 50% chance of someone in a relationship getting cancer.
Of the 40+ medical conditions that trauma insurance covers, over 90% of claims are because of illnesses such as heart attack, stroke, cancer and diabetes. If Nicola is paying $500 to receive $200,000 and $965 to receive a maximum of $10,000 at the time of a claim, which would you choose?
