What is Trauma Insurance? | Cover Australia

Everyone has a basic idea of what life insurance and income insurance are all about. These are vital insurance options many people obtain, however trauma insurance is another option that many people are unaware of that must also be considered.

So what is trauma insurance?

Trauma Insurance will provide you with a lump sum payment if you are diagnosed with one of a number of traumatic medical conditions such as cancer, heart attack or stroke. In this blog post we will seek to answer this question in more detail and provide you with all the information you need to see the value in having trauma insurance for you and your family. Then, simply make an enquiry with Cover Australia for your no obligation trauma insurance quote and allow us to arrange a policy for you to protect you and your family.


Why Do I Need Trauma Insurance?

Being in good health is a valuable commodity that should be cherished. It is one of the best gifts that life has to offer. Being healthy ensures that you are able to look after yourself, go to work and earn an income and lead the lifestyle you enjoy. You can take care of the most routine of activities, without needing any support or assistance from someone else.

So what is trauma insurance and why do you need it if you are a perfectly healthy person? Unfortunately, as you age, your health also starts deteriorating and your immunity level drops. You can also become more susceptible to catching illnesses of various kinds. Occasionally, even seemingly healthy people could develop critical illnesses that have a significant impact on their lives. All of a sudden you may have unexpected medical costs, rehabilitation costs and you may be unable to work as regularly or efficiently as you usually do. This is why there is clearly a need for trauma insurance.

Below is a list of some of the common critical illnesses and traumatic conditions covered under trauma insurance policies.

  • Heart attack
  • Coronary artery bypass surgery
  • Stroke
  • Multiple sclerosis
  • Paralysis
  • Parksinson’s disease
  • Cancer
  • Loss of sight, speech or hearing
  • Sever rheumatoid arthritis
  • Occupationally acquired HIV, Hepatits B or Hepatits C
  • Loss of independent existence

Worst of all, any of the critical illnesses above could even have life-threatening repercussions. Any illness creates a situation of doubt and uncertainty on the most commonplace of things in life. This could include details like how soon you would be able to resume work or how you would be able to pay for the treatment. A critical illness only aggravates the situation further.

This is why obtaining a trauma insurance quote and taking out a policy to protect yourself is very beneficial for you, especially if you should unfortunately suffer a serious illness.


How the Numbers stack Up for Trauma Insurance

How does trauma insurance stack up against other insurance options?

In 2013, an industry survey was conducted to get a gauge for the levels of consumer awareness that exist regarding the differing insurance products in the market place. The results found that:

  • About 60 percent of their clients owned a life insurance policy
  • Around 10 percent of their clients had a life disability insurance cover
  • Only seven percent of their clients had a trauma insurance policy

The survey highlighted the fact that many Australians did purchase life insurance.

This might sound like good news, however the survey did not investigate the amount of cover purchased by the people surveyed. Nor did it check whether the cover the clients purchased was adequate or not. In addition, some of these people also safeguarded their incomes by purchasing income protection insurance.

The low rates of purchase of TPD insurance and trauma insurance policies in Australia remains to be a matter of concern. The survey shows that 93 percent of Australians would probably have no recourse if they suffered from a critical illness.

It also highlighted that around 90 percent of people would struggle to keep themselves afloat financially, if they were to suffer from any total and permanent disability.


How Does Trauma Insurance Cover Work?

Trauma Insurance is not often the first form of Insurance you turn to, but that is no reason to underestimate its importance in a time of need.

When you buy a term life insurance policy, you receive the benefits when you die or when doctors diagnose you with a terminal illness. People in Australia buy income protection insurance to offset the financial difficulties of the time when they cannot earn their salaries, because of an illness or an injury.

Disability insurance pays a lump sum benefit if you suffer from a disability that renders you unfit to work for the rest of your life. Similarly, if you want to gain immunity from the risks of a critical illness or an injury, you would purchase trauma insurance.

This cover pays a lump sum benefit if you suffer from one of the trauma conditions, as defined by the insurance company. Insurance companies came to realise that certain trauma conditions had a high survival rate of up to 80 percent. However, their treatment processes lasted for a lifetime, increasing the everyday financial expenses of the individual.

Therefore, this cover was developed to provide relief to people suffering from various conditions of trauma.

The best part about trauma insurance cover is that it gives you financial freedom when you experience a major medical crisis. In addition, it pays the benefit during the lifetime of the insured individual, so you can use the proceeds to best meet your needs at the time.

The payment you receive can be used for financing your medical treatment expenses, funding additional care if required or compensating for a loss in income experienced by you or your spouse during your recovery period. Receiving this payment can also help meet your everyday living expenses, paying bills and meeting loan repayments. There are many great reasons to seek out a trauma insurance quote today with Cover Australia.


What are the Exclusions Stipulated by Trauma Insurance

Each insurance company covers a different range of trauma conditions. Typically, many insurers would cover conditions like blindness, deafness, dementia, coma, Alzheimer ’s disease, lung disease and heart attacks for example. Some life insurance companies could cover as many as 30 trauma conditions. Others might only cover 10 – 15. Therefore, you would need to study the policy document carefully. Alternatively, you could consider taking the assistance of your life insurance adviser. At Cover Australia we are able to identify the most comprehensive trauma insurance cover that is affordable for you.

However, trauma insurance also specifies various exclusions. Some of these state that the insurer would not pay any benefits if the insured event:

  • Occurs directly or indirectly as an intentional self-inflicted act or attempted suicide
  • Arises from a medical condition or event, which the insurer has specifically excluded from the policy
  • Is not life threatening or benignant or temporary in nature
In addition, a 90-day qualifying period also applies to trauma insurance. Therefore, you would not receive any benefits if certain conditions occur within 90 days of:

  • Your policy start date
  • Your policy’s latest reinstatement date
  • The date on which you applied for an increase in cover

These conditions could include events like angioplasty, leukaemia, stroke, heart attacks, cancer etc.


Compare Policies and Receive a Trauma Insurance Quote from Cover Australia Today

At Cover Australia, we specialise in providing you with the best insurance cover options available and we hope that you will consider the benefits that trauma insurance can provide.

From income protection insurance comparisons and quotes to cheap life insurance, Cover Australia is a provider of insurance solutions. Several insurance advisors only help you to compare life insurance products whereas we give you access to a wide range of insurance products and quotes.

With us, you get much more. We have the relevant expertise and knowledge to give you specialist advice you can count on. In addition, we tailor insurance products so that they suit your needs and objectives too.

Please don’t hesitate to call us at 1300 366 817. Alternatively, visit our website to receive your trauma insurance quote. Get the security to face the future with confidence and assurance thanks to Cover Australia.

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