TRAUMA INSURANCE

Have you ever stopped to think about how your life would change if you were struck down by a major illness like cancer or coronary artery disease?

Each year, many thousands of Australians have heart attacks or suffer a major illness. Most recover and return to a normal life, but what happens in between.

If you take time out to think about it, just dealing with the anxiety of coming to grips with a pending by - pass operation or discovering you had cancer would be bad enough.

A major illness can cost a small fortune and if you're not prepared, the financial drain alone could have a devastating effect on your savings, your assets and everything you've worked towards over the years.

Food for Thought Source:

Seven of the top 20 leading underlying causes of death in 2009 were attributable to some form of malignant cancer. These seven causes accounted for 25,612 deaths or 18.2% of all registered deaths in 2009. (Australian Bureau of Statistics – Cancer (COO-D48)).

• The standardised death rate for Cancer for males in 2009 was 223.4 per 100,000, and 139.2 per 100,000 for females.  (Australian Bureau of Statistics – Cancer (COO-D48)).
• One in nine women will be diagnosed with breast cancer before the age of 85. (Cancer Australia – Breast Cancer Statistics 18/01/2011)
• The number of women diagnosed with breast cancer in Australia increased from 5291 in 1982 to 12,567 in 2007.  (Cancer Australia – Breast Cancer Statistics 18/01/2011)
• Cardiovascular disease is the leading cause of death in Australia, accounting for 34% of all deaths in 2006.  Cardiovascular disease kills one Australian nearly every 11 minutes! (Heart Foundation, Data & Statistics)

Leading Causes of Death by Gender

Ischaemic heart diseases (I20-I25) were the leading cause of death for both males and females in 2009, with 12,047 and 10,476 deaths respectively. This reflects a sex ratio of 115 male deaths per 100 female deaths. (Australian Bureau of Statistics 3303.0 - Causes of Death, Australia, 2009).

To find out more on the statistics of the top 10 leading causes of death for both males and females click the link below to the Australian Bureau of Statistics.

But don't be depressed by those statistics because thanks to advances in medical technology, the death rate is falling and the chances of survival are constantly improving.

• The age-standardised mortality rate for all cancers combined fell by 16% from 209 deaths per 100,000 people in 1982 to 176 deaths per 100,000 people in 2007.
• For those diagnosed with cancer between 1998 and 2004, the 5-year relative survival for all cancers combined, was 61%.
• Females had a better chance of survival than males, with the 5-year relative survival estimate equaling 64% for females and 58% for males.

You need more than traditional life insurance to avoid being in a financial mess. What would be nice is to be able to sit back and relax knowing that you will receive a lump sum payment. No money worries while you are on the road to recovery.

Insured Conditions: -Most life companies offer a Trauma or Critical Illness insurance. Make sure the major killers are covered - Heart attack and cancer. The life companies vary in their interpretation of what constitutes a diagnosis. Be careful to select one that has a comprehensive definition of each condition and a clear cut interpretation of whether you have suffered the condition. (E.g. Heart attacks vary in their severity; inquire as to what constitutes a Heart attack in the life companies definition of the policy document) Heart complications are quite varied, be sure the definitions cover the surrounding area of the heart as well.

List of some of the more common conditions covered:

This is by no means a comprehensive list; this information is only a guide to help you understand the sort of conditions that are covered.

Each one of these conditions will carry a definition in the policy document which is important at claim time. Read it! 

TAXATION

In most situations, premiums are not tax deductible. However benefits paid to the policy owner are tax free.

The above tax information is a general statement only. It is based on present tax laws and their interpretation. Individual circumstances may differ from this general statement and we recommend you seek independent advice on your personal tax and financial situation.