How Trauma Insurance can help you fund the high cost of surviving a serious medical condition

Trauma insurance pays you a lump sum on the diagnosis of a specified non-pre-existing illness or injury, generally including heart attack, stroke, cancer, and paraplegia.

Trauma insurance was created when it was realised that medical advances were resulting in patients increasingly surviving major health problems, but that the financial cost of survival was prohibitively high for patients (e.g. medical costs, medicine, time off work, rehabilitation etc).

In other words, patients didn’t lose their lives… they lost their life savings instead.

This means that most families are carrying significant financial risk should the unexpected happen. The big question you have to ask yourself is:

‘Would your family be able to maintain their lifestyle if you suffered a serious illness and, while unable to work, faced substantial medical and rehabilitation expenses?’

If your answer to this question is no, you need to consider transferring that financial risk to an insurance company.

Your financial adviser can help you do that, as well as answer any questions you have about trauma insurance, and then calculate how much trauma insurance you need to safeguard you and your family in the event something should happen to you or your spouse.

And, if you wish, your adviser will use our sophisticated computer program to ‘broker’ the major insurers to find you the right cover at a competitive price.*

What is trauma insurance typically used for?

If you become seriously ill, a trauma insurance payout can free you up from financial worry. It’s to help you get well sooner by paying for things such as:

  • Meeting medical, pharmaceutical, specialised therapies and rehabilitation costs not covered by your health fund
  • Paying for a carer
  • Funding modifications to your home that may be necessary due to permanent disability (e.g. replacing stairs with ramps)
  • Repaying debt
  • Topping up your Income Protection policy payments
  • Paying for extended time off work (so you can fully recover before you return to work).
  • Topping up your income if you decide to go back to work only on a part-time basis
  • Using your payment to create a cash reserve to boost your retirement savings or fund a family holiday.