Trauma cover

Cover for critical illnesses

Trauma cover is also referred to as 'critical illness' cover or 'recovery' insurance.

A serious illness can make it difficult or impossible for you to continue to work. If this happens, you will need to find a way to support yourself and your family. Trauma cover can provide a financial safety net for such events.

Trauma cover

Smart tip

When purchasing trauma cover, take into account what other types of life insurance you need, such as life cover, total and permanent disability cover and income protection.

Trauma insurance provides cover if you are diagnosed with a specified illness or injury. These policies include the major illnesses or injuries that will make a significant impact on a person's life, such as cancer or a stroke.

Trauma insurance pays a set amount. This can be used for things like:

  • Any private medical costs above your health insurance
  • An income stream if you stop working, but find out about income protection first
  • The ongoing cost of any therapy and special transport costs
  • Adjustments to housing and lifestyle changes
  • Debt repayments

Do you need trauma cover?

When deciding if you need trauma cover, think about:

  • Your level of private health insurance
  • Other types of life insurance you have, especially through your super fund
  • How much income you and your family will need to live if you can't work for a while or forever
  • What help or family support is available to you
  • What government benefits or workers compensation is available to you

If you're working, income protection insurance may better meet some of these needs.

Choosing trauma cover

You can purchase trauma cover from an insurance company directly or through a broker or financial planner.

Think about whether you want stepped or level cover.

Since July 2014, super funds are no longer able to offer trauma cover to new members. However, if you were in a super fund that offered trauma cover before this time, you could still be covered. To see what level of cover you have through your super fund:

Things you need to tell your insurer

You need to tell your insurer anything that could affect their decision to insure you when you are applying for, renewing or changing a trauma insurance policy. You also need to tell the insurer about things that have happened between the time you apply and when the insurance cover starts.

Some insurance companies need you to give them details of your medical history. If you don't have the information they require you can get it from your doctor. If you don't give the insurer this information they may refuse your claim and this could affect any life insurance you apply for in the future.

Like all forms of life insurance, you need to do your homework when working out if you need trauma cover.


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Last updated: 23 Aug 2016