We come in to contact with many demographics through our financial planning appointments. Throughout all demographics there are a few constants;
1. A large percentage of everyday people are under insured based on their relevant personal circumstances
2. Although most people have some type of insurance in place there can be large gaps between what they have and what they should have
3. Due to cost and other factors a large percentage of clients opt out of or don’t take up Trauma insurance at all
Now we have talked about the importance of updating your insurances in a previous blog post, (http://www.nationalsterling.com.au/have-you-looked-over-your-insurance-lately/) today we want to concentrate on Trauma.
So what is Trauma insurance?
Money Smart magazine describe Trauma insurance as ‘A type of insurance cover that provides cover if you are diagnosed with a specified illness or injury. These policies include the major illnesses or injuries that will make a significant impact on a person’s life, such as cancer or a stroke. Trauma can also be referred to as Critical Illness cover.’
Other insurer’s describe it as ‘cover that can help with medical costs and help to lessen lifestyle changes that result from any of the 48 major illnesses or injuries, including heart attack, stroke, cancer and blindness’
Put simply, this type of insurance was designed to provide you with a lump sum payment to assist you with your financial, medical and lifestyle commitments and readjustments that may be needed in the event of any of one or more major illnesses or injuries occurring.
Now this is all just a bunch of words until we look into it a little more, so we thought it would be helpful to provide some information that we can all relate to;
Cancer in Australia
The Cancer Council Australia have recently published some shocking statistics which we would like to share with you;
– It is estimated that 128,000 new cases of cancer will be diagnosed in Australia this year, with that number set to rise to 150,000 by 2020
– 1 in 2 Australian men and 1 in 3 Australian Women will be diagnosed with cancer by the age of 85
– Cancer is a leading cause of death in Australia with more than 43,200 people dying from cancer in 2011. This means that Cancer is responsible for 3 out of 10 deaths in Australia!!!
– The most common cancers in Australia are Prostate, Bowel, Breast, Melanoma & lung cancer. These 5 cancers account for over 60% of all cancers diagnosed in Australia
The good news is that for many common cancers, survival rates have increased by 30% in the past two decades and 66% of people diagnosed with cancer in Australia are still alive 5 years after diagnosis.
Heart Attacks and Strokes in Australia
Heart Foundation Australia statistics from 2011 are available online and are as follows;
– 45,600 deaths in 2011 which were attributed to cardiovascular disease (CVD). This means CVD kills 1 person every 12 minutes in Australia
– CVD was the main cause of 482,000 hospitalisations in 2009-2010 and played a secondary role in a further 800,000 hospitalisations
– Coronary heart disease and heart disease affect around 1.4 million Australians and claimed the lives of over 21,500 Australians in 2011.
– Coronary heart diseases kills 59 Australians each day or one Australian every 24 minutes.
– Over 380,000 Australians have had a Heart attack at some time in their lives
– In 2011 Heart Attack claimed the lives of 9,811 people or on average 27 each day.
– Each year around 55,000 Australians suffer a heart attack. This equates to one heart attack every 10 minutes
So the statistics are quite confronting especially when you consider them and think of your friends and family. Most people these days will immediately think of a friend, brother, sister, mother, father or grandparent that has been affected by one of the above conditions however this is just scratching the surface. Some of the best ways of considering whether or not you can make room in your budget for Trauma insurance is to look to those people and consider what had to change for them and their family once they were diagnosed with a serious illness or suffered a major injury…
Below is a table published by Insurance Watch that sets out some of the other major illnesses and injuries that are covered by Trauma insurance (although be sure to check your specific policy disclosure statement as cover may vary from insurer to insurer):
What does this mean for the person who is diagnosed and their family? Chances are they have had to make some big changes to;
– Their lifestyle
– Financial commitments
– Even the ‘everyday schedule’ may have changed to accommodate treatment, medical bills and recovery?
There is little point in seeing the value in an insurance policy after an insurable event has occurred! And chances are you may then be uninsurable!
Even a small amount of Trauma insurance can make a big difference! Contact us on (03) 9533 8555 today to review your insurance needs and make sure your personal goals and that of your families are taken care of in the event of an insurable event.
If you don’t have time to call during business hours you can also contact us via email: firstname.lastname@example.org or via the ‘Contact Us’ tab on our website: www.nationalsterling.com.au/Contact-Us/
External References and Links