I was advised by the insurance company to get trauma insurance cover along with a life insurance policy. They insisted that it was important and that it only added a few dollars to the monthly premiums. What is this policy and do I have to get it?
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Answer by Neha Sharma, Hillsdale 2036 NSW
- Trauma insurance cover is also known as serious illness insurance or critical illness insurance. You should always seek expert financial advice when considering taking out any insurance policies.
- Most insurance companies offer this insurance cover as an additional optional cover or as a separate cover under their life insurance policies. Under this insurance cover a benefit is paid to the policy owner in the event that a life insured suffers a serious illness for example:
- heart attack;
- malignant cancer;
- stroke; or
- coronary arteries bypass surgery.
- Usually people aged 18-60 years are offered this additional insurance cover and although it is not a necessary insurance to hold it can have many advantages. The benefit payment may be useful for a range of unexpected expenses such as:
- treatment costs;
- debt repayment;
- home modifications; and
- specialist medical attention.