AMP has shared with us this video that will talk you through trauma insurance. You can watch the video here or read the transcription below.
Hi, I’m Natalie and I work at AMP. I’ve been working in the insurance industry for about 12 years now. I have a personal interest in trauma insurance, because it’s something that I think is fairly misunderstood, but really important and beneficial. It’s something that covers you and your family at a time when you need it most. Trauma insurance essentially covers you for critical illnesses. It pays a lump sum, the same way as life insurance. You might be covered for say $500,000 and that lump sum is payable upon diagnosis of a certain serious condition, for example, cancer or a heart attack.
You can take a trauma policy to protect yourself or someone else you care about. I recently took out an AMP policy, not actually for myself but for my family. My mum’s family has a history of cancer, so we need to be careful with our health and the financial risks as well. My aunty had breast cancer about five years ago. She didn’t have trauma cover at the time and I saw how difficult it was for her to cope with the medical, mental and physical costs of that diagnosis at the time. This is why I took out a policy that covers my sister and her four daughters.
Trauma insurance is not the same as health insurance. Its purpose is to help maintain your lifestyle and that of your family. I know of a woman who was diagnosed with motor neuron disease. As you might imagine, this is something that is really life changing. Following that diagnosis, her husband became her full time carer and because she had trauma cover, her payout of just over $136,000 really helped make a difference for them. It gave her husband the financial freedom to take time away from work to really focus on what mattered most, caring for his wife and family.
If you ever needed to make a trauma claim, it’s helpful to know that AMP’s practice is to commence reviewing the claim within 24 hours of it being lodged. Once the claim is finalized, the lump sum is deposited into your bank account, so you can choose to use it for your medical expenses or you can take some time out with your family once you’ve completed your treatment, if that is what you want to do. There is a lot of variation when it comes to trauma insurance, so it’s good to consider your circumstances. Maybe you want to link it to other insurances, like life insurance, which could reduce your overall premiums.
Or if you have life insurance through your super, you might only need the trauma insurance as a top up to that. Now what I’ve said is really based on my personal experience and everyone is different, so speak to your financial planner. We have a network of financial planners who can help you find what might be best for you, so that you can be prepared for anything.