Trauma Insurance Definition

Trauma refers to a sudden serious physical or mental injury. Trauma can keep people out of work for a long time, as they struggle to heal either mentally, physically or both. Trauma or recovery insurance, available in Australia, is for those who have suffered through trauma. It can help people get back on their feet and live a normal life.

Description

• Trauma insurance helps people pay for treatment and other expenses after trauma. It will pay a lump sum when you are diagnosed with a life-altering medical condition. Trauma insurance is paid out by your life insurance company. The amount of money paid out varies depending on your insurance company. Your trauma insurance will be defined in the company's product disclosure statement or PDS. Product disclosure statements exist to inform you of your rights as a life insurance owner.

Operation

• After you have suffered a trauma, you must report your condition to your insurance company. The insurance company will examine your case to see if you qualify for trauma payment. Send in your doctor's reports and other medical papers to help prove your condition meets the definition of a medical trauma. After about 14 days, you should receive your payment. However, this will vary depending on the company.

Conditions Covered

• The conditions covered by trauma insurance vary from company to company. Some conditions covered include Alzheimer's, angioplasty, aplastic anemia, benign tumor of the brain, blindness, cancer, cardiac arrest, cardiomyopathy, kidney failure, liver disease, coma, deafness, dementia, diplegia, heart attack, independence loss, loss of limbs, loss of speech, head trauma, organ transplant, HIV, MS, muscular dystrophy, paraplegia, Parkinson's disease, stroke, quadriplegia and hypertension. Paying extra for your insurance can add extra conditions to your policy.

Payment Amount

• The amount of money you receive for your insurance varies depending on the insurance you have bought. It also depends on your traumatic condition. More serious conditions will get you more money. For example, cancer treatments can nearly bankrupt a person. The insurance company will give out more money to ensure that the cancer patient has enough money to survive. After your money has been decided upon, you will be paid. Payment comes in two options: a one-time lump sum or in several smaller payments. Payment method depends on your insurance company.

Variable Cost

• The cost of trauma insurance depends entirely on your insurance company and several other factors. Your age and smoking status will be taken into consideration. Older people may have a harder time getting cheap trauma insurance. Smokers will pay more for trauma insurance as smoking can cause many traumatic conditions. If you already suffer from a disease or other medical condition, the cost will also increase. Buying trauma insurance as a young non-smoker will help keep your trauma insurance costs low.