Trauma Insurance

What is trauma insurance?

Trauma insurance provides a lump sum payment if the insured were to suffer a major medical ‘trauma’ or ‘critical illness’. The actual events covered vary between insurers, but some of the most common ones include:

Heart attack and other heart related conditions.
Neurological conditions — dementia, motor neurone disease, Multiple Sclerosis, muscular dystrophy, paralysis, Parkinson’s disease and stroke.
Blood disorders — aplastic anaemia, medically-acquired HIV, occupationally-acquired HIV.
Cancers and benign brain tumours.
Organ disorders — like chronic kidney/liver/lung failure, coma, loss of hearing/speech, major head trauma, severe burns etc.
Each of the above insured events is usually medically defined within the policy, and the definition must be satisfied to be eligible for a benefit payment. For example, it is not sufficient to simply be diagnosed as suffering from ‘cancer’, the type and severity of the cancer must meet the definition(s) within the policy.

When you suffer a serious illness, the impact on your life can be enormous. Likewise, the financial impact can be devastating if you’re not adequately prepared for it.

What this means to you

The payment of a lump sum from trauma insurance can help you and your family get the financial support you need to get through a major illness without the financial upheaval.

This money can help you do things like:

pay for the best medical care, both here or overseas
access the full range of rehabilitation services
pay for someone to come and help you around the house
change your lifestyle if required (eg reducing your working hours or taking an extended holiday)
help with mortgage and other debt commitments

Trauma insurance cannot be written within superannuation.

Insurance policies will often vary in their features and benefits, so you should work with your financial adviser to choose a policy that suits your needs and your budget.