7 questions to ask about Trauma Insurance

Life Insurance -

What happens in the case of a debilitating accident, critical illness, or injury? Trauma insurance offers relief that ensures certain medical emergencies will not also be calamitous to your family's finances.

  1. What is trauma insurance?

    Also known as Recovery Insurance or Critical Illness cover, trauma insurance covers certain illnesses, and injuries that are debilitating, potentially even fatal, and have a significant impact on a person's life and their ability to work. For instance, cancer, a stroke or serious motor accident.

  2. Where can I get it?

    You can purchase Trauma Insurance directly through insurance providers who offer this type of cover. TAL lets you build your own cover package online according to your needs.

  3. Is it included as part of my superannuation?

    No. Don’t expect to find trauma cover in your super fund. This kind of cover has not been offered to new members since July 2014. If your super fund offered trauma coverage before this date, call to find out if you are still covered. 

  4. Do I need trauma insurance?

    While it’s not pleasant to ponder if you will be diagnosed with any of the illnesses or injuries covered in trauma insurance policies, it is always advisable to think ahead and imagine how your family will manage financially if you are no longer able to provide a stable income through working.

    Consider what kind of savings, private health care, and back up plans you have in place. This includes reviewing other insurance policies you may have such as income protection, life insurance (including through your super), and total and permanent disability.

    When deciding on your level of cover, think of how much money your family will need to stay afloat on a day to day basis, as well for bigger ticket items such as mortgage payments and educational expenses. It’s also worth thinking about how much support you have in your community, or from relatives who may be able to help out in an emergency. Alternatively, are you eligible for any government payments or workers compensation – and will this be enough in a worst case scenario?

  5. How do I pay for it?

    As with other insurance covers, you can choose between stepped (generally cheaper in the beginning and increasing as you age) or level (the price doesn’t increase as you age) premiums. As with any insurance policy, do your research before signing on the dotted line.

  6. How does it pay?
    • Trauma insurance pays a set amount. You can use this in several ways:
    • To cover medical costs not covered by a private health provider, including specialty therapy
    • As a form of income if you are no longer able to work
    • To cover the cost of moving into a new living situation caused by the trauma
    • For debt repayment so your family is not left struggling.

  7. What else should I know?

    Your insurance company will most likely request the medical records relating to the event or illness that has necessitated your claim. Your claim may  be turned down if this information is not provided

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