What is a stroke?
A stroke is when the blood supply to the brain is interrupted. However, there are two ways in which a stroke can occur. The interruption of blood to the brain can be caused by an artery being blocked (ischaemic stroke), or when an artery bursts (haemorrhagic stroke).1 in 6 Australians are likely to suffer a stroke during their lifetime. The most common stroke people suffer from is an ischaemic stroke. According to the National Stroke Foundation, more than 500,00 Australians have suffered from a stroke between 2008-2017 which costs Australia $2.14 billion each year.
What is Trauma insurance?
Trauma insurance, which is also known as critical illness cover, is designed to provide you with a lump sum of money to cover immediate medical expenses or other financial expenses you will face after suffering a critical illness or injury. Conditions that you will be able to cover will vary from policy to policy, but the most common ones are a stroke, heart disease, heart disease, various cancers, or a heart attack. Checking with your insurer to see if they cover your critical illness or injury is important.
How much cover should you take out?
Trauma cover will vary based on your financial situation and your family situation. Therefore, speaking to a financial advisor or insurer can help you know what will be adequate for you. However, a few ways that you can know whether you have enough cover is:
- Will it be able to provide immediate release of finances for your medical needs?
- Will it be able to cover your mortgage expenses and debt?
- Will it be able to sustain your current lifestyle?
- Can it provide a financial buffer for your loved ones to take care of everyday living expenses and educational expenses?
- Can it be sufficient enough to replace your partners' salary if they were to take care of you?
Limitations to be aware of
Not all trauma insurance policies are created equal. This means that you will have to read the fine print of your policy to check whether it is suitable for your needs. Looking at the premium rates, annual fees and ongoing fees of your policy are important. However, being aware of the payout time is essential. Some insurers will want documents to prove that what has occurred is a fact which can delay the process.
This aspect could be tricky if you are planning to make a claim before a diagnosis and sometimes after a diagnosis. Some insurer might decline your claim based on the medical evidence provided.