If you’re diagnosed with a critical illness or crisis, trauma insurance can relieve your financial difficulties. Unlike income protection insurance, which is dependent on your inability to work, trauma cover is paid out on the diagnosis of a defined critical illness regardless of your working status.
Instead of receiving a monthly income stream, you are paid a lump sum that has no restrictions on what this can be used for. The insurance company makes no demands on how you spend the money. Trauma insurance is often an addition to life policies.
A claim payment for the Trauma cover can enable a principal to buy out the financial interest of the business principal who is unable to work due to a trauma event as outlined in your insurance PDS. Given that the nature of a trauma event may not eventuate in the business owner wanting or needing to permanently exit the business, it is vital that a buy/sell agreement is in place and covers the event of both eventualities.
Other types of Business Insurance Cover