Trauma / Critical Illness Insurance
Arcadia tells you which Trauma/critical illness insurance best fits your circumstance - Click to get a free quote comparison.
What is it?
Trauma insurance, also called critical illness insurance, pays you a tax-free lump sum if you experience a serious illness such as a heart attack, stroke or cancer. Depending on your policy, you can be covered for 30 to 70 different conditions. Trauma insurance helps you cope with the financial impact of a major illness. It can be used for anything, but generally when people claim they use it to cover bills, pay the mortgage and other expenses while focusing on recovery
Why do you need it?
Some people need trauma insurance more than others. Here are a few reasons why you may need it:
Financial pressure - One of the main reasons why people need trauma insurance is to relieve the financial pressure when recovering from a major medical event. Medical bills and ongoing treatment costs can quickly add up, and without insurance, these expenses can become a heavy burden on you and your family. Trauma insurance provides a lump sum payment that can be used to cover these expenses, allowing you to focus on your recovery and get back to your normal life.
Mortgage and other debt - This type of insurance is especially important if you have a mortgage. With a mortgage, you have a significant financial obligation that must be met each month. If you're unable to work due to an illness or injury, you may struggle to make your mortgage payments. Trauma insurance can provide the financial assistance you need to keep up with your mortgage payments and keep your home.
Children - Having children also means that you have additional financial responsibilities. From daycare to education expenses, the costs of raising a child can add up quickly. If you're unable to work due to an illness or injury, you may find it difficult to cover these expenses. Trauma insurance can provide a safety net that allows you to maintain your child's lifestyle, even during difficult times.
How to save money on trauma cover:
Stepped vs level premiums: Most people have "Stepped premiums" trauma insurance, which increases as you get older. It's cheaper at first but gets more expensive. "Level premiums" are another option where costs stay flat until the term ends. You can choose how long you want coverage, such as age to 65 or longer. Level premiums are more expensive upfront but save you money long-term.
Quit smoking: Smokers usually pay higher premiums, so quitting smoking can help you save on trauma insurance premiums.
Review your policy regularly with an adviser: Review your trauma insurance policy regularly to make sure it's still the best fit for your needs. You may be able to adjust your coverage to save money - At Arcadia we offer free annual reviews!
Stay Healthy: Staying healthy and staying within the recommended healthy weight range for your body type can help you avoid being charged extra by the insurance companies.
Bundle discounts: Bundling your trauma insurance with other types of insurance is a great way to get the best of both, for a lower price. Oftentimes insurers offer a bundling discount. Contact the team at Arcadia to get a free quote comparison.
These are a few basic tips. However, the best way to find out if you can save money is by having a discussion with one of our expert advisers based on your specific circumstance.