Trauma, TPD & Child Cover Insurance

Trauma Insurance Case History 2: Trauma, TPD & Child Cover Insurance

the following is an example of a Case History in relation to Trauma Insurance, Total and Permanent Disability Insurance Death & Child Cover. If you require advice regarding an Trauma Insurance Policy or a Total and Permanent Disability Insurance Policy, please contact us directly.

The Situation

Client Name: Phillip
Status: 35, married, 2 children

Accountant Phillip earned $60,000 annually. His wife Donna (34) stayed home to look after their two kids James (4) and Matthew (2). Phillip’s debts included $140,000 for his mortgage, $4,000 on credit cards and a $6,000 car loan.

Phillip had $50,000 Life Insurance cover provided under his superannuation policy but was concerned about what would happen to his family’s lifestyle if he died or was to suffer an accident or illness that prevented him from working.

With the help of his financial adviser, Phillip selected $1,000,000 Life Insurance and $200,000 Total & Permanent Disability and Trauma / Diagnosis Insurance, in addition to the Life Insurance provided under his superannuation cover. The combination of superannuation and stand-alone insurance would deal with all of the family debts and provide the family with another $900,000 should Phillip die.

If Phillip was to suffer one of the medical conditions specified in his Trauma / Diagnosis Insurance policy, or suffer a total & permanent disability, the lump sum would help him meet the medical costs associated with the treatment of the condition without the need to dip into personal savings or go further into debt.

Phillip also considered his wife Donna’s need for Life Insurance. How would they pay for home help, time out for Phillip, additional medical bills, etc, if something happened to Donna without being covered in any way by insurance??? They decided to purchase $500,000 worth of Life Insurance to help provide child care if Donna was not around to look after the children. They also included $400,000 Trauma and Total & Permanent Disability cover on her life.

Phillip had read about children who suffered serious illnesses and the associated costs in treating these illnesses. As a result he included $50,000 child’s Trauma / Diagnosis insurance for his two children as part of his own Life Insurance Policy.

Phillip also chose to protect his income with Income Protection Insurance. His employer provided for sick leave up to three months, but without employment he’d have no other income to rely on. He chose a $3,750 monthly benefit for his Income Protection cover (being 75% of his income, the maximum level of cover offered) with benefits paid through to age 65. Phillip included an increasing claim option on his income protection policy, so if he was on claim, his monthly benefit would increase to help keep up with inflation.

At the age of 38 Donna suffered a heart attack while hanging out the weekly washing. The funds received from their Trauma / Diagnosis insurance paid for the medical expenses, paid for home help while she recovered, and paid for two months time out for Phillip.

If you want to compare trauma insurance go to the Trauma Insurance Comparison page, or to submit an online quote request form, please go to the Trauma Insurance / Diagnosis Insurance request quotation page.

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