Trauma Insurance Comparisons

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Trauma Insurance

Trauma insurance in Australia is also known as Critical Illness Insurance or Recovery Insurance.

How Trauma Insurance Came About

Over 25 years ago, a doctor in South Africa felt that many of his patients were being forced to return to the stress of work very soon after common traumas such as heart attack, cancer etc.

However, often it was their lifestyle and work situation that contributed to their illness but they could not afford to take time off or make adjustments to their life. They were 'fit' enough to return to work so income protection was no good to them and they were not dead, so life insurance was no good to them either.

So the doctor approached some life insurance companies to assist people financially in the event of a major trauma. So Trauma Insurance was born. It provides a lump sum payment to you (tax free) in the event of a major trauma, for you to either pay for treatment or choose to make some changes in your life.

Why Is Trauma Cover Important?

Should you suffer a trauma you and your family will require funds to pay for treatments or to ease the financial burden of debts. These illnesses typically require extensive medical treatment, which often is not covered by health insurance. Modern treatments allow many sufferers of these illnesses to make a full recovery in a relatively short period of time (some heart attack victims are capable of returning to work after 8 weeks). The trauma claim payment is designed to remove the financial pressure and enable you to return to work (or normal life) as soon as possible.

This is important for two reasons - if you have just suffered a critical illness of some description, what treatment you choose and how quickly you can get treatment will depend on your financial situation. Without funds, you are restricted in options and this can also cause extra stress. Secondly, people who suffer these types of critical illness often want (and need) to re-evaluate their lifestyle, perhaps take time to travel overseas, visit family etc. Trauma insurance provides the funds to enable this to occur.

How Does Trauma Insurance Work?

Trauma Insurance pays a lump sum if the Insured Person is diagnosed with a medical condition and satisfies the definition of that specific event as specified in the insurance company's Product Disclosure Statement. It is not dependent on whether you return to work or whether you work at all.

Trauma insurance can be taken as a stand alone policy, or attached to a life insurance policy.


Example of Critical Illness Events Covered

  • Aorta Surgery,
  • Aplastic Anaemia,
  • Benign Brain Tumor,
  • Blindness,
  • By-pass Surgery,
  • Cancer,
  • Cardiac Keyhole Surgery,
  • Cardiomyopathy,
  • Chronic Kidney Disease,
  • Chronic Lung Disease,
  • Coma,
  • Coronary Artery Bypass Grafting,
  • Deafness,
  • Dementia & Alzheimer's Disease,
  • Diplegia,
  • Heart Attack,
  • Heart Value Surgery,
  • Hemiplegia,
  • Loss of speech,
  • Major Head Trauma,
  • Major Organ Transplant,
  • Motor Neuron Disease,
  • MS,
  • Muscular Dystrophy,
  • Occupational or Medical Acquired HIV
  • Open Heart Surgery,
  • Paraplegia,
  • Parkinson's,
  • Quadriplegia,
  • Severe Burns,
  • Stroke,
  • ……and more.