Cover for critical illnesses
Trauma cover is also referred to as 'critical illness' cover or
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.
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
- Any private medical costs above your health
- An income stream if you stop working, but find out about income
- The ongoing cost of any therapy and special transport
- 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
- 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.
You can purchase trauma cover from an insurance company directly
or through a broker or financial planner.
Think about whether you want stepped or
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
Things you need to tell your
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.
Last updated: 23 Aug 2016