Trauma and TPD cover
Trauma Cover can also sometimes be referred to in the industry as Living Assurance, Critical Care Cover or Serious Care.
Trauma Cover is a lump sum cover paid after 14 days of being off work after diagnosis of a critical illness. The most common claims arise from cancer, strokes and heart attacks.The client can choose what amount they ensure themselves for. Naturally the higher the amount of cover the higher the amount of premium.
If you suffer a major critical illness then you’re likely to require significant time to recover, which may mean time off work with no income coming in. In the event of an illness such as cancer it may also mean your partner or loved one also has to take time off to help provide care and support to you as you work your way back to full health.
Such events can have a double impact on a family’s cashflow; having Trauma cover in place means you’ve got to time to get better without the stress of paying the bills.
Most providers will cover the major illnesses but it is worth looking through the fine print to see which insurers offer that little bit extra when it comes to the cover provided. It’s all about stretching your dollar to get the most value for you and your family.
TPD (Total & Permanent Disability) like Trauma cover is a lump sum payout, although the conditions paid out on are of a serious long term nature. If due to an accident or illness you are deemed to be unlikely to return to work, either your ‘Own’ occupation or ‘Any’ occupation depending on what kind of cover you choose, you will receive a lump sum payout from your insurer.
The stand down period for TPD is usually 6 months although for certain illnesses some providers are now cutting down this wait period to 3 months. Again it pays to talk to an advisor to know which insurers provide these shorter stand-down periods.
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