What is the Purpose of Trauma Insurance?
A Trauma contract provides a lump sum benefit in the event that you suffer one of approximately 35 conditions (varying with the insurance company).
Why do I Need Trauma Insurance?
The incidence of people surviving a mild heart attack, stroke, cancer and other conditions are increasing. It is also without doubt a highly traumatic event leads people to reconsider their goals, lifestyle and commitment to the workplace.
In such an event a lump sum of capital would be essential to provide for debt reduction, unforeseen expenses, rehabilitation costs, lifestyle changes and ensure cost is not a restraint to getting the best available care or treatment.
What level of Trauma Cover is Appropriate?
Income Protection provides you with the most important cover in the event of suffering a Trauma, ensuring your income will continue whilst you are unable to work. A lump sum Trauma benefit is imperative to reduce the burden of debt and provide capital for unforeseen expenses such as medical or rehabilitation costs.
Trauma cover is more costly than other lump sum products such as Death cover, the reason being that there is a significantly higher chance of a claim eventuating.
The payment received from any claim will be tax free to you, how this money is used may affect your tax positions.
When selecting an appropriate Trauma contract, the definitions are of paramount importance as it is these that will determine whether a claim is payable.
The majority of claims relate to heart attack, stroke, cancer and coronary surgery. It is therefore important to know that you have excellent contract definitions in these specific areas.
If you want to know more contact a Specialist SMSF Solutions adviser today, on 02 4942 0280.