Trauma / Critical Illness Insurance

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Trauma insurance pays out a lump sum on diagnosis of a major illness or other specified medical condition, regardless of whether you continue working or not.

Over 20% of women and 25% of men would qualify for a trauma payout before age 65.

Trauma has the highest premiums because it has by far the most claims. It is usually taken out in combination with one or more of the other policies.

How much trauma insurance do I need?

The purpose of this insurance is to help you to afford medical treatment and to cover your extra costs during this difficult time.

Typically people insure themselves for 1 – 3 years of their gross earnings.

TPD insurance is a cheaper option if trauma is too expensive.

Income Protection is a good option for covering your salary.

It is a balancing act (that we assist you with) to find the right combination of cover.

Trauma - general cover and advanced features

Most payouts are for cancer (60-65%), heart disease (20%) and stroke (8%). In addition conditions like multiple sclerosis, motor neurone disease and other diseases are covered. There is also a trend to include heart stoppage outside a hospital, coma and being in an intensive care unit as eligible for a payout.

Many trauma policies offer an option of advanced features which provide partial payouts for milder versions of common cancers and additional medical conditions. This option is often worth considering.

The actual conditions covered can vary greatly between policies so it is important to understand what your particular policy covers as outlined in our Top 10 Tips.