What does trauma insurance cover me for?

June 15, 2023

You may have heard of trauma cover and wondered what it actually is. So, what does ‘trauma’ actually mean? And how can it help you?

Here's what you need to know about trauma insurance and what it offers you.

What is trauma cover?

Trauma insurance is also sometimes referred to as "critical illness" cover. It's a type of personal insurance that offers a lump sum payout when you're diagnosed with a range of serious health conditions. Often, these conditions can be life-changing.

Advances in medical treatment mean that a lot more people are surviving serious medical conditions than in previous generations. That’s obviously a huge win, but sometimes being really ill comes with extra bills, or a reduced ability to earn income.

That’s where trauma cover can step in.

What's covered?

Trauma policies and what they cover vary between insurers, so it’s important to check the terms of any policy you hold or are considering taking out, to understand what you are covered for.

There are some conditions that they all usually cover, such as serious cancer, terminal illness, loss of limbs and major head injuries. These aren’t the sort of health conditions that you bounce back from quickly, so having that trauma insurance claim payment support can be hugely valuable.

Some policies allow for full claims on some conditions and partial claims with others. Some insurers also offer a type of trauma insurance that will let you make multiple claims, depending on the illness or injury you have suffered.

How much can you receive as a payout?

You can choose what level of cover you want for your trauma insurance policy (usually with a maximum amount depending on the insurer you are with).

The amount that will be appropriate will depend on your personal circumstances. Consider how much you would want to have available to you, should you become very ill, and work with us as your insurance adviser to determine whether that is an appropriate level.

What can the payout be used for?

There is no restriction on what a trauma insurance claim can be used for. You might want your payout to cover the costs of specialist medical treatment or medication, pay down debt, or spend some time travelling or with your family. The flexibility that being paid a lump sum offers is one of the big drawcards of trauma insurance for many people.

Like to talk?

There are lots of ways that personal insurance can be used to protect you and your family, and trauma cover is just one of them. If it’s time to upgrade your insurance, review what you have, or put new cover in place, get in touch with us. We can ensure your protection is a great fit.

The information contained in this publication is intended for general guidance and information only. It has not been personally prepared for you. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult with us before making any investment decision. Historical market performance may not be indicative of future market performance.