Trauma Insurance Case Study
Trauma insurance has been around for a while in Australia, but it is still relatively unheard-of for many people who do not have a financial adviser.
Trauma insurance, which is also known as critical illness insurance, is designed to protect you financially during a period whilst you are suffering and/or recovering from a major illness or medical trauma.
The cover is different to income protection, as it pays a single up-front lump sum rather than an ongoing month payment. Trauma insurance isn't necessarily designed to replace your income, but instead to provide a big lump of cash to get you and your family through a very difficult period.
To demonstrate the benefits of trauma insurance in Australia we have put together a few case studies, the first of which is outlined below.
These case studies use different names and slightly different situations, but they are based on real events where trauma insurance has provided a great benefit to a client.
Peter & Jenny's Story
Peter and Jenny are like many other young couples in Australia. They have two great kids aged 11 and 14, and Peter works fulltime and the main breadwinner for the family. Jenny has a small ebay store that she runs from home to make a few extra dollars.
Peter and Jenny were by no means wealthy, but because Jenny's brother as a financial adviser, he has instilled the important of personal risk insurance into both of them over a long period of time. Peter would late joke that they only took out insurance to shut her brother up!
After complaining of stomach pains over a four week period, Jenny finally decided to visit another doctor after deciding that her usual GP wasn't providing much help in diagnosing the source of the pain. Neither Jenny or Peter thought it was too serious, but she was keen to get rid of the occasional pain.
It was a good thing that Jenny decided to visit another doctor, as one thing led to another and she was eventually told that she had liver cancer. Further tests revealed that the cancer was well developed, and that she had perhaps only nine months to live.
Of course this news was completely devastating for Peter and the family. Peter spent many hours over the next few days speaking to different doctors and researching online to find out if anything else could be done. He found a doctor in France who had been enjoying some success with his trials, but a few emails and phone calls revealed that the costs were completely out of the question.
Peter then had the daunting task of calling their family members to let them know what was going on. Jenny's brother was as upset as anyone about the news, but was also quick to tell Peter that Jenny had a $500,000 trauma policy in place that would cover this type of cancer.
Within a fairly short period of time the trauma insurance claim was settled, and Peter and Jenny found themselves with $500,000 sitting in their bank account. Peter made contact again with the doctor in France, and immediately booked Jenny in, without having to worry about the six figure cost of the treatment.
The money from the trauma insurance payout meant that Peter could take indefinite leave from work and relocate to France with Jenny. Initially they planned to leave the children with Jenny's parents, but given Jenny's limited life expectancy, they decided that the family should stay together.
In between treatments Jenny and the family were able to travel around Europe using money from the trauma insurance. They tried to enjoy as much travel as early possible, as they knew that this experiential treatment would take a major toll on Jenny, and that enjoying travel would soon not be possible for her.
The family was very grateful for the time they were able to enjoy in Europe together. The trauma insurance money allowed them to enjoy the things they always wanted to do together. Jenny's condition was always in the back of their mind, but at least they didn't have to worry about financial matters, with their mortgage paid up for the next twelve months and money in the bank for the rest of their bills.
There were also sufficient funds to fly Jenny's parents and family over for the odd visit, which made life a lot more enjoyable for everyone involved.
There were a lot of ups and downs over the next six months as Jenny's condition seemed to bounce between better and worse, but on the 28th of January they received the news they'd been waiting for - the latest tests had showed that the cancer had been eradicated.
They weren't quite out of the woods yet, but it was fantastic news. The doctor recommended that they remain in France for another three months for further tests. Financially this was going to be a stretch, but there was just enough in the kitty to remain in France and take the occasional weekend trip to Italy and around Europe.
At the end of the three week period Jenny received a tentative okay from the French doctors, and was given the all clear to return to Australia with her family. She was to remain in contact via a local Australian doctor, but the main thing was that she was returning home without the cancer cells she first left Australia with.
Without trauma insurance there is still a chance that Jenny may have miraculously survived the cancer, but undoubtedly the trauma insurance help. Similarly, the trauma insurance didn't guarantee Jenny's survival, but the overseas treatment wouldn't have been possible without it.
Upon their return to Australia the trauma insurance payout had been pretty much exhausted, but Peter was able to return to work within a month, and their mortgage and all other bills were all up to date.
Jenny had survived the most challenging period of her life, and her loving family had been able to spend every moment by her side, whilst also making the best of a bad situation by enjoying time together travelling around Europe.
Generally this type of experience would only be available to the wealthy and famous, but thanks to their trauma insurance and the advice of Jenny's brother, an average Australian family like theirs was able to make it happen. And fingers crossed, they will live happily ever after.
For more information or for a quote on your trauma insurance please click here.
More Trauma Information:
Trauma Insurance Australia