Trauma Insurance

Trauma Insurance Benefits

Life insurance comes in many different forms. Some forms of life insurance, such as TPD and income protection, provide benefits whilst you are living. Term life insurance on the other hand benefits you (or more specifically, your estate) after your death.

Trauma insurance falls into the 'living' category of life insurance, by providing you with benefits whilst you are still living, and in many cases whilst you still have quality of life.

Trauma insurance, also known as critical illness insurance, pays you a lump sum amount upon diagnosis of a critical illness.

What illnesses are covered?

The specific conditions covered by a trauma insurance policy can vary from one insurer to the next, however the main conditions are generally quite similar.

The most commonly claimed upon conditions are cancer, heart attack and stroke, however many trauma insurance policies cover between forty and fifty different conditions and illnesses.

Before deciding on a trauma insurance provider, it is important to review the list of conditions covered and be comfortable with level of coverage relative to the premium being charged.

How much am I covered for?

The amount you are covered for under your trauma insurance policy is agreed between you and the insurance company when you take out your policy, and can be changed at any time provided that there have been no negative changes in your medical history or health.

The minimum sum insured for a trauma insurance policy is around $50,000, with the maximum being $2 million plus. The average sum insured for trauma insurance is around $250,000, but the amount you choose is entirely up to you.

The amount of trauma insurance you have will depend on your own personal needs and objectives, along with your insurance budget.

What can the payout be used for?

This is where the real benefits of trauma insurance come into play. The proceeds from your trauma insurance policy can be used for any purpose you see fit, as they will be paid to you in cash with no restrictions on the use.

Many beneficiaries of a trauma insurance policy will use the funds to alleviate financial stress during what is already a very stressful time. Funds are often used to repay short-term debts such as credit cards, cover lost income for the household, and put towards obtaining the best possible medical assistance that money can buy.

In some cases, especially where the chances of survival are not great, funds have been used to fund family holidays. Whilst this may seem frivolous at first, it allows families to spend time together and create lasting memories whilst the critically ill family members still has sufficient quality of life and can make the most of their final months.

The real benefit of trauma insurance - choice

It has been said that one of the main benefits of trauma insurance is that it gives the illness sufferer and their family the power of choice.

  • Choose to access the best medical treatment that money can obtain.
  • Choose to spend quality time together without worrying about the cost.
  • Choose to have a working partner take time away from work without worrying about the lost income.

These are all choices that may not be available to the average family without the financial benefit of having a good trauma insurance policy in place.

Trauma insurance provides serious benefits to those who hold it. Even if you never claim on your trauma insurance policy, you still have the benefit of peace of mind knowing that you will be looked after financially if something was to happen.


More Trauma Information:

Trauma Insurance

Trauma Insurance Australia

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