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The insurance cover for cancer, strokes, heart attacks and more

Often, when you hear of someone encountering a serious medical event, they talk about the unexpected financial costs involved.

Even when their medical treatment is through the public system, there are often extra costs associated with childcare while they are in hospital, for instance, or the cost of family members taking time off work to help at home.

The good news is that there’s a type of insurance that is designed to step in, in just those sorts of situations.

When you suffer a serious form of cancer, a stroke or a heart problem, it’s quite likely that you could claim on your trauma insurance policy (subject to terms and conditions).

What is trauma insurance?

Also known as ‘Critical Illness’ cover, trauma policies pay out a lump-sum amount when you are diagnosed with one of a specified type of illnesses or injuries that are listed in the policy document.

You aren’t covered for everything that could be traumatic – instead, you could receive a claim payout if you suffer conditions that are specified in the policy, such as kidney failure, a stroke, loss of the use of a limb, a heart problem or cancer. Usually, these are things that are life-threatening, so they could have a big impact on your financial life, too.

The lump-sum payment is tax-free and provides a lot of flexibility, as you and your family can use the money for whatever you like – experimental treatments, a family holiday, or simply to meet your living costs while you have time off work to focus on the things that matter most to you.

But wouldn’t health insurance cover these things?

Health insurance might pay out for the costs of the treatment, but it wouldn’t do things like pay for a family holiday to ease your stress, or a cleaner to come in a couple of times a week to help you keep on top of your housework while you recover.

Trauma insurance can also be used to pay down debt or provide a fund to pay your monthly expenses if you find you can’t work for a period of time. The power of trauma insurance is in that flexibility – once you get the payout, it’s up to you what you do with it.

And what about income protection?

Income protection might also kick in if you were to suffer some of these events and as a result not able to work. But it is only designed to cover a portion of your income – you wouldn’t have any extra money available to you to fund your treatments or any other payments that needed to be made. Plus, unlike trauma insurance, you have to be unable to work to receive the payout. It’s something to consider if you’re weighing up your options.

Who is trauma insurance most important for?

Trauma insurance can be a big help for people who have:

others who depend on them for income, such as a young family,

a significant amount of debt or other fixed expenses that they have to cover, and

limited emergency savings in the bank.

It can also be appropriate for single individuals who don’t have other people to rely on to fund their costs.

Are you pondering your options?

Whatever your insurance questions, please don’t hesitate to contact us. Give us a call on 0508 44 00 44: our friendly Advice4Life advisers can help you work out whether your insurance cover is adequate, or what protection you and your family might need.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.