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.

What is trauma cover?

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

Smart tip

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

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
  • the ongoing cost of any therapy and special transport costs
  • adjustments to housing 
  • repaying your debts. 

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 may have, especially through your super fund
  • how much income you and your family would need to live if you couldn't work 
  • what help or family support is available to you
  • what government benefits or workers compensation you could be eligible for. 

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

Think about whether you want stepped or level cover.

Compare how long it takes different insurers to a pay a trauma claim and the percentage of claims they pay out.

Life insurance claims comparison tool

How to get trauma cover

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

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 any things that happen between the time you apply and when the insurance cover starts that might affect your eligibility.

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.

Related links

Last updated: 29 Jul 2019