Insurance is a contract that offers a means of protection from a financial loss against a possible eventuality. In a way, it is a form of financial risk management used as a contingency plan from uncertain losses.
With insurance in place, an individual can receive reimbursement against damages and losses from an insurance company. However, the amount and the coverage differ from person to person as policies vary per client.
There are various kinds of insurance offered by different companies. You can have insurance policies in place to cover damage to a house or a car. But what’s becoming popular nowadays are policies known as trauma insurance that hedge against the risk of financial losses in the event of the insured developing a chronic illness.
What Trauma Insurance Is All About
Trauma insurance, often referred to as recovery insurance, pays a lump sum of money if you suffer from a severe injury or critical illness. This includes medical conditions such as stroke, cancer, heart attacks and many more.
The concept is to receive compensation and soften the hard blow of incapacity to earn an income due to critical illnesses or injuries. In a way, it provides financial support to cover medical treatments, living expenses, rehabilitation costs, loan payments and the like, while you’re in no form to continue working in the meantime.
What Trauma Insurance Covers
The coverage of a trauma insurance policy can differ between insurers. Thus, it is critical to read the product disclosure statement of your policy to understand what’s covered under it.
Usually, though, it covers various health conditions such as heart attacks, stroke, multiple sclerosis, Alzheimer’s disease, chronic kidney failure, aplastic anaemia, blindness, loss of speech, loss of limbs, loss of hearing and many others.
In some instances, it also covers dangerous surgical procedures like major organ transplants and coronary bypass surgeries. However, it is essential to note that every insurance company has varying requirements on definition and severity that will incur the policy to take effect.
Why You Need Trauma Insurance
Admittedly, your need for trauma insurance will depend on your circumstances. But if you are acting as the breadwinner of the family, it would be helpful to consider the benefits listed below that trauma insurance can provide in case of your incapacity to provide financial support.
1. It Provides Financial Aid for You and Your Family
When you’re in no form to continue earning for you and your family, it could be pretty problematic to secure funds for medical treatments, living expenses and loan payments. Compensation from a trauma insurance policy can help cover such costs. In this way, you and your family members will have one less thing to worry about during this time of crisis.
2. It Lets You Focus on Recovering Instead of Other Problems
With a trauma insurance policy in place, you can rest easy that your beneficiaries will receive the financial support they need. Furthermore, you won’t have to search high and low for a means to fund hospitalization and treatments costs. By lifting some financial burden off your shoulders, it allows you to focus on your recovery.
Conclusion
Trauma insurance can help address financial problems if you suffer from a severe illness or injury. Even with other health insurances in place, you can still opt for having one for more financial security in the future.
With that said, it would be good to seek help from reliable financial advisors on whether you need trauma insurance or not. As the best financial planner on Gold Coast, you can rely on New Wave Financial Planning. Let us talk about securing your future today!
