Australia continues to experience an increase in cancer cases, heart disease and stroke, however with the ever growing advances in medical research the chances of surviving a serious medical event have also increased. This was not the case only a decade or two ago, where such a serious medical event would have usually resulted in death. In the end, survival is invaluable; however in the mean time such events can be extremely traumatic and have serious consequential effects on lifestyle, family and work.
This is where Trauma Insurance can help, especially if you are unable to continue work with your current employer, or forced to stop work completely for a given medical reason. Where your medical prognosis and recovery may be more certain in this day and age, the impact on your lifestyle and particularly your financial position and its recovery, may be less certain.
First introduced in Australia in 1986 Trauma Insurance (also known as critical illness, sickness, accident and living assurance) pays a lump sum in the event of a specified medical condition, regardless of whether it prevents you from working or not. Typically policies cover a range of illnesses with recent claims experience showing the cause of claims to be about 62% for cancer, 13% for heart attacks, 11% for coronary artery disease and bypass surgery, 9% for strokes and the remaining 5% spread amongst the other conditions¹.
Trauma Insurance is available on its own or in conjunction with Life Insurance and can even be bundled with income protection.

Whilst we all think it won't happen to us consider these statistics:

• Cardiovascular disease is the leading cause of disability in Australia.
• 60,000 Australians will suffer a stroke each year, or one stroke every 10 minutes.
• Close to 20% of all strokes occur to people under age 55.
• 1 in 8 women will develop breast cancer.
• Over 13,000 new bowel cancer cases are diagnosed in Australia each year.
• Over 18,000 Australian men are diagnosed with new cases of prostate cancer every year.
• It is expected that 1 in 3 men and 1 in 4 women will be diagnosed with a malignant cancer before the age of 75.

Trauma Insurance can make a significant contribution towards the financial survival of families and businesses by providing you with cash to use as you see fit. As such, it can alleviate financial pressure in a period of intense shock and trauma, giving you and your family time to adjust to the crisis and rethink your future.

A Real Life Case Study²

Forty-six needles. Five malignant tumours. One mastectomy. Evelyn and Eddie Wilfling had no idea of the magnitude of what was ahead when Evelyn found a lump in her breast in September 2009.
“There was something else the Wilflings didn’t expect: a substantial trauma claim benefit from their insurer after claiming on a barely-remembered trauma policy.” Like many sufferers, 45-year-old Evelyn’s breast cancer diagnosis came as a shock. “I was fit and well and had never had any health issues,” she says. “I’ve checked my breasts every month for the last 20 years.”
Finding the lump led to two mammograms, then a core biopsy, an ultrasound, an MRI, a lumpectomy, the removal of swollen lymph nodes, a mastectomy and then the diagnosis of a second area of invasive cancer. A suspected lung cancer was thankfully just that. “It’s so frightening in hospital,” Evelyn says. “You’re in a state of shock but you have to listen and be proactive and keep asking questions.”
Off work for five weeks, Evelyn relied heavily on the support of Eddie – her husband of 23 years – and family. “My husband was an angel and did everything around the home,” she says. The final tally of cancerous lumps came to five; as the cancer hadn’t spread beyond the breast, Evelyn required no further treatment.
The Wilflings took out life insurance and trauma cover when they bought their first home seven years earlier although Evelyn admits she’d forgotten about it. In February, when she was recovering, they submitted a trauma claim and a few weeks later, received a very welcome surprise in their bank account. Evelyn recalls: “It was a Monday morning and I looked at the account and there was all this money there. I thought the bank had made a mistake but then we realised it was from the insurer. We screamed, we cried, we were so happy.”
Evelyn was covered by private health insurance but the couple still faced medical bills and out-of-pocket expenses. “It doesn’t change the situation but money does help a little bit,” Eddie notes. “The most important thing for us was how easy it was to claim.” The claim form was lodged on the 15th February 2010 and the payment in their account on 26th February 2010. There were no challenges.
It proves that trauma assessments and claim payments can be completed quickly if the reports from doctors and istopathology are made available at the time of claim. Eddie now believes trauma cover is just as important – if not more so – than life insurance: “Life insurance is something you leave for your family and children. Trauma comes at the worst time but the right time.”
Things have changed since the dark days of September. Evelyn and Eddie relocated to a new home on the Peninsula and Evelyn has returned to work part-time as a project administrator in Melbourne. “I’m fine but there are parts of me that are still a bit fragile,” she admits. “I never thought about dying but negative thoughts do still run through your head. Kinesiology and hypnotherapy have helped a lot with that.”
The experience has also changed the couple’s relationship. “These days, we have a greater appreciation for the beautiful things around us: beach, sunshine, family friends and laughter,” Eddie says. Evelyn is pragmatic about her situation: “I was lucky. One woman gets diagnosed with breast cancer every 43 minutes and there are women who have both their breasts off as well as chemotherapy and radiation.” The past months, however, have taught her two valuable lessons: “Don’t hesitate to take up trauma cover. ”

So What’s Next?

At Moore Stephens we are not only passionate about helping clients grow their wealth but also helping them protect it as well. At your next review meeting we will discuss the suitability of Trauma Insurance to your circumstances, or, if you would prefer not to wait please call your Moore Stephens Adviser.