The Importance of Trauma & Income Protection Insurance

How would your family manage when faced with a traumatic event ?

When faced with a traumatic event, families need to cope emotionally, you may also need to make changes to your living arrangements and you may also be facing loss of income. The last thing you need to worry about at such a stressful time is finance.

Trauma insurance can provide peace of mind by ensuring you have sufficient money to fund changes in living arrangments, providing an income while you are off work & therefore creating less stress for your family at a difficult time.

Traumatic events are more common than you may think.

Take a look at the igures below :

Work Related Statistics (trauma and income protection)
• 2 of 3 males, 1 of 3 females, or 1 of 2 Australians will suffer a traumatic event during their working life
• 50% of all trauma policies sold are to “white collar” workers
• Most trauma claims occur within 2.5 years of policy commencement
• A person is 3 times more likely to suffer trauma than death before age 65
• There are approximately 117,000 Australians who are “permanently unable to work” due to illness or injury
• 1 in 3 Australians will be off work for more than 3 months during their working life due to illness or injury
• When a person is off work for more than 3 months, then the average duration of claim is usually 4.2 years!
• The most common type of work related injury is industrial deafness, followed closely by back related injuries
• Each year, approximately 1 million Australians experience serious injuries or illness, which either require hospitalisation or prevent them from working
• Half of all serious accidents occur away from work, so workers are not covered by workers compensation
• 20,000 Australian children (minors) are primary care givers for at least one parent due the parent’s sickness or disability
• 1 in 2 Australians will be off work for more than 7 days during their working life due to illness or injury
• Less than 1 in 5 Australians have income protection cover with a benefit period of greater than 2 years (Yes, this includes company sponsored plans!)
• Nearly 10% of Australian full-time workers leave work due to chronic illness
Source: “Year Book Australia 2002 – Health – Special Article – Chronic diseases and risk factors”. by Australian Bureau of Statistics