Trauma cover is also referred to as ‘critical illness’ cover or ‘recovery’ insurance. It helps take the pressure off, so you can spend time focussing on recovering and not worrying about your finances.
Trauma insurance pays you a one-off lump sum if you have a serious medical condition such as cancer, heart attack, stroke or an accident.
The benefit can be used for the following benefits:
- pay your out-of-pocket treatment and therapy costs;
- adjustments to housing and lifestyle changes;
- take time off work by reducing your working hours/days;
- debt repayments.
The amount of trauma cover you need is based on a number of factors, for example:
- income – how much you earn today
- dependants – do you have children or other financial dependants?
- debts – do you have a mortgage, loan or other debts?
- assets – have you accumulated any assets over the years, like property or shares?
How much is enough?
To understand your needs, a financial adviser will need to ask you some questions about your future so it is important to focus on what is important.
Things to consider
- What does the future look like for you and your family?
- What plans are you making together as a family/couple that you don’t want to forgo or break due to financial difficulties?
- What are your educational plans for your family? Do you plan to put your children through university?
- Do you have thoughts about buying an investment property?
- What holiday plans are you considering now and in the future?
- Do you have savings that you could easily access if you needed them?
- Would you be able to support your family if something happened to you in terms of a serious medical diagnosis?
To get a true indication of how much is enough, contact us at TAG and have a chat to one of our advisers. We’ll be able to understand your individual circumstances, and then make sure you have the right amount of cover and the right policy to meet your unique needs.
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.