Covering all bases with Trauma Insurance

 In Business, Education, Health, Insurance

Covering all bases

When I meet with my clients often after only half an hour I must ask the tough questions like, if you were diagnosed with cancer, had a heart attack or stroke how would you deal with this? I find it difficult to have to talk about the unexpected impacts of poor health scenarios with my clients. Nobody wants to get sick or think they will suffer from these illnesses and many other types. But, we certainly all know others that have and how it has had an impact on them emotionally and maybe financially.

It is a part of my role as a financial planner that I don’t really like to play, the bad guy, but I want my clients to be prepared for the worst in the event it does occur they will have to some degree peace of mind.  It’s easy to communicate and understand why insuring a car is so important but what about indispensable assets like our own lives.

What is Trauma Insurance?

The type of insurance we hold to cover these types (cancer, heart attack, stroke, etc.) of illnesses is Trauma cover, also known as critical illness. If you suffer a serious illness or injury an agreed lump sum is paid, so you can make adjustments to your lifestyle that you may need or want after suffering a traumatic event.

What expenses does Trauma Insurance cover?

As you may be unable to work for a period of time and may suffer from financial hardship, you may be unable to cover these extra expenses. Trauma insurance will provide you with the financial security and peace of mind for any unforeseen event.

The story of Melinda – diagnosed with Breast Cancer at age 45

Recently, my client Melinda a Human Resources Manager was unexpectedly diagnosed with breast cancer and her primary concern was to follow the medical procedures to ensure her cancer was fully treated and she was able to completely recover. She didn’t want to have to worry about the financial strain it would place on her partner and the rest of the family as she was unable to attend work.

Being a mother with two young children and balancing family life and work is a tough enough gig. Handling the cancer processes was all I wanted Melinda to deal with and not have to worry about how this may impact the family financially.

During this difficult time she was able to leave this in my hands and I followed the necessary claims procedures to seamlessly have her lump sum paid accordingly. I was able to receive all the necessary doctors’ reports and lodge them with the AMP claims team and monitor the progress of her claim.

The lump sum payment Melinda received was a real comfort as it released any financial stress; during this period it was used for some of their daily living expenses, the additional medical costs her health insurance didn’t cover, ongoing cost of therapy and even enabled her to take a short holiday with the family to Queensland.

Doesn’t private health insurance cover me?

Further, people often believe private health insurance (or even Medicare) will pay for these expenses, but depending on the extras cover you hold a certain amount of hospital expenses, medical treatments, specialist therapy and some rehabilitation expenses will not be covered.

I visited Melinda and her family a few weeks ago and it was so good to see she has now fully recovered and is enjoying time with family and friends and prioritising her time. She now sees life through a different light and values her time with family and friends more. During our catch-up she stated she recognises that these traumatic events do come along and having a safety net in place makes a real difference. She has certainly recommended the benefits and importance of this insurance to her family and friends and even having of a financial planner which is a rewarding part of my role.

The statistics behind Trauma Insurance

Of interest, AMP paid 420 claims to customers, $93.8m that’s about $257,000 paid per day. The average age been 53, the average per person was $223,331and 80% of the claims related to different types of cancer, heart attack, stroke and other circulatory disease, heart surgery and nervous disease system.

Article written by Brad Smith, Senior Financial Planner at Oak Financial Planning.

You can read more about Brad by viewing his profile here.



Valkyrie Private Wealth Management Pty Ltd ABN 78 126 751 335, trading as Oak Financial Planning is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited, Australian Financial Services Licence and Australian Credit Licensee, 232706 (AFSL), 232706 (ACL).

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