Trauma Insurance – can you afford not to have it?

What is Trauma insurance?

Trauma insurance (also known as Critical Illness insurance) provides a lump sum upon the diagnosis of a serious medical condition. Whilst many of us may have private health insurance, the full cost of seeking specialist treatment for a serious illness is usually not covered by most health funds, with various treatments and rehabilitation programs often not covered at all. Even if you have no private health insurance and are just relying on Medicare, having trauma insurance in place can give you choices of doctor and treatment you otherwise may not have.

The number of conditions covered varies widely from policy to policy, with cheaper policies often offering far fewer benefits. The most common claims under these policies are for cancer, heart attack, coronary bypass and stroke, although other conditions can also be covered.

List of common Trauma conditions that can be covered
Alzheimer’s Disease Aplastic Anaemia Blindness
Burns – Server/Major Cancer Cardiomyopathy
Coma Coronary Artery Angio Coronary Bypass Surgery
Deafness Dementia Diplegia
Encephalitis Heart Attack Heart Valve Surgery
Hemiplegia HIV – Occupational Acquired Kidney Failure – Chronic
Liver Disease – Chronic Loss of Independence Existence Loss of Limbs or Eye
Loss of Speech Lung Disease – Chronic Major Head Trauma
Major Organ Transplant Motor Neurone Disease Multiple Sclerosis
Paraplegia Parkinsons’s Disease Pulmonary Hypertension
Quadriplegia Stroke Terminal Illness
Life Cover – Death Benefit Total & Permanent Disability Aortic Surgery
Out of Hospital Cardiac Arrest Benign Brain Tumor HIV – Accidental Infection

You don’t have to die…

The benefit is paid when diagnosis is confirmed – not when you die of the condition. It provides you and your family with a lump sum to use when needed the most for medical care, or to pay the mortgage and other debts to relieve financial pressure.

Why do I need Trauma insurance?

If you have a family, debts and are at pre-retirement age, this cover may be the most important policy you have in place. A critical illness can be just as damaging to a family’s finances as a death, and more so if medical bills start to mount up as a result of a long lasting illness.

While recovery is certainly possible from the illnesses covered by trauma insurance, in most cases to qualify for a benefit the condition needs to be severe. Also if you suffer from a condition which is not specified you will not be covered. Income protection on the other hand covers any sickness or accident-related injury causing temporary inability to work eg. stress, RSI or back injury. There is certainly room for both types of coverage, however trauma will usually be the only option for persons who are not currently working.