Trauma/Critical Illness insurance provides a tax-free lump sum payment if you contract a specified critical condition – these include heart attack, stroke, cancer, MS, paralysis and blindness.
The lump sum payment from critical illness insurance is most commonly used to extinguish some debt, reduce the financial burden of meeting medical costs resulting from treatment and to cater for increased lifestyle costs.
Trauma insurance is one of the least profitable contracts for insurance companies in Australia simply because of the extraordinarily high amount of claims that they have to pay out to policy-holders. What we have realised over the last 30+ years in assisting our clients with their claims is that diseases like cancer do not discriminate.
It’s never easy witnessing a family’s anguish as they deal with the uncertainty of a loved one diagnosed with a critical illness, but when that loved one is their child then it just seems to raise that level of distress much higher.
We do take some comfort knowing that we can take much of the financial pressure off our clients during these times but observing a family’s sorrow never gets any easier.