Real Life Examples – Trauma Insurance

Trauma insurance

I originally saw John* in November 2008, he had recently become self employed and wanted to review his insurance policies and superannuation account. We were able to increase his existing life insurance policy and maintain his existing income protection insurance which he could continue to hold even though he was leaving his employer.

We recommended that John take a trauma insurance policy for $350,000. We discussed this John thought that at age 38 this policy was not a priority and the cost of $182 per month was expensive so it wasn’t proceeded with.

In November 2009 we met up for John and his wife Sarah’s* annual review – we discussed investments and superannuation and reviewed the levels of insurance that we had established previously. We again discussed the option of Trauma or Critical Illness insurance, we agreed to look at a package to cover all of the family to fit in a budget of $200 per month. John was still not convinced he needed this insurance he had recently run a marathon and was in great shape. In the end he agreed to implement the package which provided him with $200,000 of cover.

In September of 2011 John was diagnosed with a very rare form of Lymphatic cancer.

He received a tax free payment from one path for $210,000 on the 5th October 2011 as we recommended a reinstatement option on the policy after 12 months he can reactivate the policy to cover other unrelated conditions.

When I gave the cheque to John, we discussed what this means to him and his family. He is lucky that this type of cancer is not aggressive and could mean that he does not miss any time off work for potentially the next 10 years. John echoed the thoughts of many people who receive a payment and wishes that he had gone for more cover. In saying that this has provided him with peace of mind, knowing that in the future should he need expensive or urgent treatment he has the funds in place to pay for it. While he is covered for some of the costs through private health cover if he didn’t have these funds he would have to find the shortfall from his own pocket.

Sarah said she now has the comfort and peace of mind that they have the means to pay for any urgent or expensive treatment that may occur in the future.

*Names have been changed for privacy purposes.