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Introduction to trauma insurance
Trauma or crisis insurance does have its place in an insurance plan.
Trauma insurance pays a one-off cash sum if you are diagnosed with one of approximately 30 specified illnesses or injury. Examples of the major events or illnesses covered include cancer, heart attack and stroke.
It is important to understand what trauma insurance isn’t. Trauma insurance only pays out on a limited number of specified illnesses. There are literally thousands of illnesses and injury events that it does not cover, including back injury and mental illness.
However, as part of an insurance plan, the Shape of Money believes that trauma insurance provides two essential benefits.
How much trauma insurance should you have? If you have life and income protection insurances, the Shape of Money doesn’t believe that you need to buy buckets of this form of insurance. Somewhere between $50,000 and $100,000 cover should be sufficient in most cases.
You should only consider trauma insurance once your life and income protection insurance needs have been taken care of. However, higher levels of trauma insurance are sometimes considered for the following reasons: