What is Trauma Insurance
Trauma Insurance,or crisis recovery insurance,provides a one-off lump sum payment when the isnured person suffers from a particular medical condition or event which is specified in the policy.The purpose of trauma insurance is to ease the financial burden associated with recovering from prescribed trauma events.
Unlike Income Protection,trauma insurance is defined medical illness and is not related to whether or not the insured is able to work or not.The insurance may thus enable the insured to take additional time off work to focus on getting well again.
Since trauma insurance isnt related to employment ,people whose full time occupation is home duties or people in uninsurable occupations,for example,have the opportunity to be insured for trauma.
Ages 16 to 55 are the usual candidates,with policies generally able to be renewed to 65,some 70.
It is important to note that,with few exceptions,once a trauma claim is paid the trauma cover then ceases,however,many contracts then allow that cover to be repurchased with what is known as a trauma buy back benefit.
The lump sum benefit paid by trauma insurance on the diagnosis of a defined critical illness is tax free and can be used for any purpose.
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