Living insurance for real lifestyle choices

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Living insurance for real lifestyle choices

Personal insurances such as life and total and permanent disability are usually associated with protecting us from those worst case scenarios, such as the death of a loved one. Improvements in survival rates from major illness, are now prompting many to consider the need for ‘living insurance’ offered by trauma cover.

Advances in modern medicine and a greater awareness of healthy lifestyles have seen an ongoing improvement in survival rates from ‘modern day’ illnesses, such as heart disease, cancer and stroke:

  • Of the new cancer diagnoses in the period 2006–10, the chances of surviving for at least 5 years was a surprising 65% for males and 67% for females*.
  • In 2009 63% of people who had a heart attack survived, compared with a 45% survival rate in 1994**.
  • The death rate due to stroke in 1987 was 73.5 per 100,000, but by 2009 the rate more than halved to 32.8 per 100,0002.

Many people who have survived such conditions will go on to lead a normal healthy life with lifestyle adjustments.

What would you want to do after surviving a major illness?

While survival rates are encouraging, it also underlines the need for a greater focus in our financial planning for what life will be like on the other side of a major health scare. If it happened to you, how would you want to change your lifestyle and how could you afford to do it?

Trauma insurance is tailor-made for this situation. Unlike any other form of personal insurance, it pays a lump sum cash amount upon diagnosis of heart attack, stroke, cancer and a host of other major medical conditions. You are free to use it for any purpose you choose, to help recover from the condition and to make major adjustments to your lifestyle.

A lump sum cash benefit to use as you choose

For some, trauma insurance will allow the funding of specialised medical treatment that is beyond the scope of their health insurance and which they otherwise could not afford. For others, it will give them the power to de-stress their lives by paying out major debts, such as a mortgage.

Then, there are those who want to use the funds to change their work situation, such as a move to part time employment, so they can enjoy increased leisure time.

Still others may want to use their cash lump sum to pay for an extended vacation for themselves and their families.

It truly is ‘living insurance’ that can help you transform your life and turn a negative situation into a positive one.

Trauma insurance in action

Geoff is a 45 year old sales manager who is married with 2 children and a mortgage of $150,000. Geoff owned life insurance and income protection, but after a needs analysis his adviser also helped him implement trauma cover of $300,000.

A year later, Geoff was diagnosed with bowel cancer. After surgery followed by a five month period of treatment and recuperation, he was given the all clear and was declared fit to return to work. His income protection paid him 75% of his monthly income during this time, but ceased once he was given the OK to return to work.

With his trauma cover, however, Geoff was also able to:

  • Pay out the $150,000 mortgage
  • Use $75,000 to fund an extra six months leave without pay from his job
  • Take his family on a $25,000 overseas vacation
  • Invest the remaining $50,000 to provide some ongoing ‘lifestyle income’ to enjoy with his family.

Enjoy the best of life, whatever the circumstances

Trauma cover is real lifestyle insurance that lets you control your future with confidence and independence if a major condition strikes.

Talk to your adviser if you want to explore what it can do for you.


* Australian Institute of Health and Welfare Website:

** Australian Institute of Health and Welfare: Trends in Cardiovascular Disease 2012

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