subject: What Happens Under My Term Life Insurance, Income Protection and Trauma Insurance Policies if I am diagnosed with Cancer? [print this page] As a group of diseases, cancer is one of the leading causes of disablement and death in Australia. Term life insurance, income protection and trauma insurance companies are all well-versed in handling claims due to cancer - today we look at what is likely to happen after a diagnosis of cancer if you hold any of the above policies.
Term life insurance
Most policies will pay out a lump sum on the diagnosis of a terminal illness where your life expectancy is less than 12 months. Some insurance companiesmay require you to visit a doctor employed by the life company to confirm your diagnosis.
Income protection insurance
Upon diagnosis you may be required to provided a medical certificate from your doctor stating the period for which you were unable to work due to illness from cancer, or cancer treatment Benefits will start being paid as long as you are still suffering sickness from cancer, or needing cancer treatment and unable to work, or until your benefit period runs out.
Trauma insurance
For most insurers Australia-wide, cancer is a condition where the majority of claims are paid.
There are some special conditions with cancer payouts, mostly relating to the severity of the illness. For example, most diagnoses of malignant cancers will generally warrant a claim of the full covered amount under your trauma insurance policy. However, depending on the Life Insurance Company, diagnoses of benign tumors or carcinoma in situ (a precursor of malignant or invasive cancers) may only warrant a partial claim.
Nonetheless you need to be aware that you are only covered for conditions defined in your policies PDS (product disclosure statement). Each policy may have varied definitions relating to cancer. You should always make sure that you fully understand the insurance cover you have taken out has adequate cover for your needs.
What Happens Under My Term Life Insurance, Income Protection and Trauma Insurance Policies if I am diagnosed with Cancer?
By: Hilary Briss
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