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.
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
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
- the ongoing cost of any therapy and special transport
- 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
- 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
Compare how long it takes different insurers to a pay a trauma
claim and the percentage of claims they pay out.
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
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 any things that happen between the time you apply and
when the insurance cover starts that might affect your
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: 29 Jul 2019