Think of the trauma
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 level cover.
Some super funds offer trauma cover. To see what level of
cover you have through your super fund:
- Check your member statement
- Contact your super fund by phone or through their website
- Read your product disclosure statement (PDS)
Be honest with your
You must 'tell it like it is':
- When you buy or renew a policy
- If you make a claim
- If your circumstances change
Failing to 'tell it like it is' means you may not be
When applying for trauma cover for the first time, you need to
be completely honest about your personal history. If you don't
disclose certain injuries or illnesses from your past, your claim
may be denied, leaving you with a worthless policy.
Like all forms of life insurance, you need to do
your homework when working out if you need trauma cover.
Last updated: 05 Jun 2015