Trauma Insurance Explained

Trauma insurance assists you financially if you're diagnosed with a critical illness or are in an accident. It's also known as recovery or critical illness insurance. Learn more about this beneficial insurance option as you plan for your future and protect your family and assets. 

What Exactly is Trauma Insurance?


A trauma insurance policy pays you a lump sum of money if you suffer from a specific traumatic event like cancer, stroke, heart attack or accident. You can use the money to pay out-of-pocket treatment costs or cover better treatment than your health insurance offers. 

It can also allow you to cut back your hours at work or take a stress-free vacation. 

Because you can't plan for traumatic events, it's wise to be prepared with trauma insurance. Thanks to this policy, you can focus on recovery. You don't have to spend time worrying about how the mortgage will get paid or return to work before you're fully recovered. 

Do you Need Trauma Insurance?


While trauma insurance is not essential like auto or homeowners, it can help you manage a challenging time in life. What would happen to you and your family if you were in an accident and couldn't work? If you were to have a heart attack, could you truly relax and recover or would you return to work right away and put yourself at risk? 

How Much Trauma Insurance do you Need?


You choose how much trauma insurance you buy. Several factors can affect your decision. Consider your:

  • Income - How much money do you need to replace your income if you are required or choose to take time off for treatment or recovery? 
  • Dependents - Do you have children, grandchildren or aging parents who rely on you for their financial provision?
  • Debts - How much money do you still owe on your mortgage, personal loan or other debts?
  • Assets - Do you have assets like property or a bank account that you can access if necessary?

Your financial advisor or insurance agent can assist you in determining how much coverage you need. He or she will ask you about your monthly living expenses, accessible savings and future plans as you decide together on how much trauma insurance to buy. 

Instead of stressing financially or pushing yourself physically, use your trauma insurance to cover your financial responsibilities after an accident or critical illness diagnosis. It can provide the financial peace of mind you need if something terrible ever happens to you. Consider investing in a policy today as you plan for your future and protect your loved ones. 

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