Insuring Against Trauma - Critical Illness Insurance

Trauma Insurance

20 November 2011

A lot of us take it for granted that we will live a long life. We don't believe that anything will go wrong with us, and if something does go wrong we have faith that medical science will look after us.

Thankfully medical science has come a long way, and it is a fact that more and more people are surviving serious and critical illnesses thanks to the amazing work performed by doctors in hospitals throughout Australia.

But with more people surviving critical illnesses, another problem has arisen. Doctors may be able to save you physically, but they cannot save you financially.

The financial effects of surviving a critical illness can be immense. These are just a few of the costs to be covered:

  • Lost wages and income
  • Medical expenses (even after health insurance)
  • Travel and accommodation costs
  • Rehabilitation costs
And that's not to mention keeping the mortgage paid and feeding the family.

Thanks to South African medical pioneer Dr Marius Barnard, there is a solution to these financial impacts, and it is called trauma insurance.

Dr Barnard was part of the team that performed the world's first heart transplant. He recognised the fact that although they could save people's lives physically, the patients were then left in perilous financial states and the reality was that their families would have been better off if the person had died.

Obviously that was not a good situation, so Dr Barnard worked with the life insurance industry to create what we know today as trauma insurance or critical illness insurance.

Trauma insurance helps policy holders by paying them a lump sum of money in the event that they are diagnosed with a critical illness. The list of specified illnesses can differ from one insurer to the next, but the main three conditions include:

  • Cancer
  • Heart attack
  • Stroke
The funds from a trauma insurance payout can be used to replace lost income, reduce the mortgage to ease financial stress, cover expensive medical and rehabilitation costs, and simply to provide a financial buffer to allow you and your family to concentrate on recovery rather than worrying about money and how to pay the bills.

Trauma insurance is offered by virtually all of the big life insurance companies in Australia, and while the policies are fairly similar at a basic level, there are plenty of differences is the features and benefits provided by each cover, as well as the types of illnesses covered by the policies.

The premiums charged for trauma insurance can also vary greatly, so it is certainly worth doing your research when choosing a trauma policy to ensure you are getting a policy with all the features and benefits you need whilst still providing good value for money and matching your budget.

You can obtain trauma insurance direct through some insurance companies, but generally the better option is to use a financial adviser or online service that allows you to compare a number of insurance companies without having to spend weeks researching the market yourself.

Here at Life Policy we offer the best of both worlds, by giving you the convenience of using our website, combined with our network of qualified financial advisers who can help you to choose the right policy for you as well as helping you through the application process.

To obtain a quote on your trauma insurance or to simply have a chat with a friendly adviser, please complete our online quote request or give us a call.

More Trauma Information:

Trauma Insurance

Trauma Insurance Australia

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