Trauma insurance

While none of us like to contemplate it while we’re well and healthy, the unfortunate fact of life is that serious illnesses or accidents strike virtually all families at some stage or another.

If you suffer a serious medical condition such as stroke, cancer, heart attack or are in an accident, how will you support yourself and your family?

Trauma Insurance is designed to protect you and your family from the financial impact of serious illness or trauma by paying out a lump sum amount that can be used to ease the financial burden during this stressful time.

It’s important to note that Trauma Insurance is not the same thing as Total and Permanent Disability (TPD) Insurance. Trauma Insurance pays you if you suffer a critical illness or traumatic event, while TPD Insurance pays you if you become totally and permanently disabled.

Do I need Trauma Insurance?

Suffering a critical illness is bad enough on its own, however, the financial consequences can often be just as devastating, and can remain a burden long after you’ve recovered physically. Trauma Insurance can help you focus on recovering, not the financial costs.

What can Trauma Insurance cover?

Trauma Insurance can pay out a one-off lump sum if you suffer a serious medical condition or trauma. This can help cover costs while you are unable to work as well as expenses that may be associated with your medical treatment, recovery and rehabilitation.

In most cases, “accidental” types of traumas are covered immediately, although many insurers impose a waiting period (commonly 90 days after the policy is accepted) for certain illnesses.

Other things to consider

There are many Trauma Insurance products on the market and the number of conditions covered can vary widely. Cheaper policies tend to cover fewer conditions, and definitions are often narrower in application. It’s essential to get professional advice so that you obtain a policy that will actually cover you when you need it the most.