Think you’re too young to suffer a serious illness? Statistics from Asteron Life show that age 49 is the ‘danger year’ for trauma insurance claims.
With many people marrying and having children later in life, your 40s are almost the new 30s. Still young, living a hectic lifestyle, and with major financial commitments, you certainly wouldn’t expect to be confronted with a serious illness.
But according to Asteron Life, the average age for someone to be diagnosed with an illness that leads to a trauma insurance claim is only 49.
What is trauma insurance?
Trauma insurance (also known as ‘crisis cover’, ‘recovery insurance’ or ‘living insurance’) is a life insurance policy that pays a pre-determined lump sum if you have a serious accident or are diagnosed with a serious illness like cancer, heart disease or stroke.
It can be particularly useful to pay out-of-pocket medical expenses (which can easily be tens of thousands of dollars for diseases like cancer), pay off the mortgage or other debts, retire early, or allow a spouse to stop working to provide care. This is one of the best things about trauma cover – you can spend your lump sum payout on whatever you like.
But without trauma insurance, your savings could take a huge hit – assuming you’ve even got the money saved.
The best defence is to stay covered
The average age people take out a trauma policy is 40. But unfortunately, the average age they cancel their policy is 44 – not long before they’re statistically most likely to need it.*
Policies like trauma insurance are there to protect you and your family for decades, not just a few years. After all, you never know when something might happen.
If you don’t have trauma insurance, or you’d like an assessment of your insurance needs, talk to your financial adviser.
*Asteron Life trauma insurance portfolio statistics, February 2013
Suncorp Portfolio Services Limited (Trustee) (ABN 61 063 427 958, AFSL 237905, RSE Licence No L0002059) is the issuer of Suncorp WealthSmart Personal Super, Suncorp WealthSmart Pension, Suncorp WealthSmart Business Super, and Suncorp WealthSmart Term Allocated Pension. These products are part of the Suncorp Master Trust (Fund) (ABN 98 350 952 022, RSE Fund Registration No. R1056655). Unless otherwise stated, the Trustee and any other company within the Suncorp Group do not guarantee the repayment of capital or the performance of these products. This product is not a bank deposit or other liability of Suncorp Bank (Suncorp-Metway Limited ABN 66 010 831 722) (SML) and is subject to investment risk including possible delays in repayment and loss of the interest and principal invested. SML is not liable or responsible for, and does not guarantee or otherwise support, these products.