The Doctor Knows Best.
Critical illness insurance was created by Dr Marius Barnard.
Doctor Barnard knew that he could repair a man physically, but only insurers can repair a patient’s finances.
Scary Name. Smart Need.
The first critical illness product was launched in 1983 in South Africa, under the scary name “dread disease insurance“! Other names for this insurance cover include: crisis care, trauma insurance, serious illness insurance and living assurance.
Oils ain’t Oils
Trauma Insurance policies are not standardised and competition between insurers is based on both cost and policy definitions. Some insurance policies list over 40 definitions, including Cancer, Heart Attack, and Strokes.
The “BIG 4”
Policies typically cover are heart attack, cancer, stroke and coronary artery by-pass surgery. Examples of other conditions that might be covered include:
Alzheimer’s disease • Blindness •Deafness • Kidney failure • A major organ transplant • Multiple sclerosis • HIV/AIDS contracted by blood transfusion or during an operation • Parkinson’s disease • Paralysis of limbs • Terminal illness
Trauma insurance contracts pay a lump sum cash payment when you are diagnosed with one of the critical illnesses listed in the insurance policy.
In fact, some policies offer partial payments, if the condition suffered does not meet the full definition required for a full claim payout.
Trauma Insurance is not typically offered under Superannuation. Trauma Insurance policies are generally not tax deductible and any claim proceeds are not taxable.
The Bottom line is that all insurance contracts are complex and you do need to understand what the policy covers. Need more information? Contact me!