Serious Illness Insurance in Australia is also known by other names including Trauma Insurance and Critical Illness Insurance. Serious Illness Insurance was originally designed to assist with the medical costs associated with serious illnesses including Heart Attack, Cancer and strokes. Serious illness insurance policies can also be used for other financial needs for example; covering debts, providing for lost income and also to provide funds to allow family members to take time off work to care for you.
Serious Illness Insurance pays a lump sum on a diagnosed event and usually is a single use policy, that is one claim only is normally paid. Some Serious Illness Insurance policies also provide partial payments of up to 25% of the insured sum where the serious illness is less severe or does not meet the full payment definition. It is also common for serious illness insurance policies to cover many illnesses, with some policies covering over 40 events!
Most life insurance companies in Australia offer serious illness insurance and policies and premiums vary significantly amongst insurers. According to Cancer Council Australia, over 120,000 new cases of cancer are diagnosed annually with, 1 in 2 men and 1 in 3 women being diagnosed with cancer before the age of 85. Although cancer is a leading cause of death in Australia, survival rates have increased by 30% in the last 20 years1.
Serious Illness Insurance can provide a lump sum to assist with the financial requirements of surviving a serious illness with some direct costs including treatment, rehabilitation and home alterations. The additional sum received may also provide access to treatment options that may otherwise be unaffordable.
With various policy options, comparing serious illness insurance plans can assist in finding a suitable policy at a competitive premium. The cost of coverage can also be reduced when serious illness insurance is bundled with other policies like Life Insurance.
1 Facts and Figures – Cancer Council Australia
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MoneyGeek wants to make sure our readers get easy to understand information to assist make the right financial decisions. Choosing the serious illness insurance is a complex decision – policy definitions can differ significantly. MoneyGeek has teamed up with Keyperson Insurance to provide free insurance comparisons and advice to assist you set your life insurance up to protect your family and your pocket!.
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The Money Geek is the head money blogger for MoneyGeek.com.au. With over 8 years experience in the finance industry, the Money Geek provides information over a range of topics to help families Australia-wide improve their financial literacy to become their own geeks and take control of their financial future!