What is Trauma Insurance?

Trauma insurance is also known as critical illness insurance. It pays a lump sum upon diagnosis of a condition or disease as defined in a life insurance company’s product disclosure statement (PDS). Over 50 different trauma events may be covered including stroke, heart attack, cancer, diabetes, Alzheimer’s disease and loss of limbs etc.

What is the function of Trauma Insurance?

Trauma insurance is mainly designed to help pay medical costs.

Because trauma insurance is relatively more expensive than TPD and Income Protection, it is not used to pay off debts or provide income if TPD and Income Protection are available.

Do I need Trauma Insurance policy?

Trauma insurance is a vital part of any risk plan, regardless of whether you are the main breadwinner or not.

Here is some information on the biggest medical ailments suffered by Australians.

  • 1 in 2 men and 1 in 3 women will be diagnosed with cancer before the age of 85.
  • More than 60% of patients will survive 5 or more years after they receive a cancer diagnosis.
  • Around 3.67 million Australians are affected by heart, stroke and vascular diseases.
  • 1.1 million Australians are disabled long-term by heart, stroke and vascular diseases.
  • 90% of Australian adults have at least one modifiable risk factor for heart, stroke and vascular diseases and 25% have 3 or more risk factors.