#4 What you need to consider

Insurance 101-Things to consider-Trauma Insurance

Trauma Insurance

Like Disability Income insurance, the number of benefits and conditions your product includes will determine what you pay.

Some insurers cover as many as 40 “trauma” conditions (also referred to Living Benefits, Critical Illness, etc.) in their policies, but there are others who offer cancer- only policies for those who can’t afford, or don’t want to be covered for all the rest.

In general terms, nearly 90% of trauma claims involve cancer, heart attack and stroke, so these product wording definitions are regarded as the most important.

Does your family medical history point to signs of genetic predisposition to any conditions?

If so, you may want to pay particular attention to the policy definition of that condition.

With this type of cover, the definitions in some insurance policies may favour females, while other policies may favour males.

What period of time must someone survive after taking out the policy before a trauma claim is considered? Is it 14 or 30 days you must remain alive?

Will your policy offer Partial Benefits?

For medical procedures and conditions that are not regarded as very serious, some policies will pay out a percentage of the sum you are insured for. Examples are: angioplasty, early stage cancer and the loss of hearing or a limb.

What other policy features are offered or come as options, e.g. automatic cover for your children covering all or limited conditions, or is there an option for you to once have again (‘buy-back’) the cover that’s previously been paid out?

What are the restrictive conditions and exclusions?

These can include: insurer’s right to change the policy wordings; a driving accident involving an excess of blood alcohol; various hazardous activities; and any countries where there is war or terrorism, etc.