Trauma or Critical Illness Insurance Your Safe Bet Against Serious Illness

Trauma Insurance is one of the types of life insurance policies which stays true to its roots – provide cover for the insured and their loved ones from the financial impact of a serious illness.

Trauma Insurance was first conceptualised in South Africa by a doctor named Dr. Marius Barnard. Involved in the world’s first heart transplant, Dr. Barnard was confronted by the fact that although he can save a person’s life, he cannot save them financially.

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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NobleOak Trauma Insurance
NobleOak Trauma Insurance
Get trauma insurance cover for 38 medical conditions including heart attack, stroke and coronary bypass surgery. $2,000,000 59 30 Get quoteMore info

Those who know someone with or have suffered from a critical illness know how emotionally and financially draining it is. It could even cost you your lifetime’s savings. So even if a person recovers from a critical illness, he would be faced with the reality that his financial reserves are drained.

To save those who have been diagnosed and are suffering from a critical illness, trauma insurance was introduced. Trauma insurance pays you a lump sum upon diagnosis of a critical illness. It does not wait for you to die before you receive its benefits.

The lump sum benefit you receive can then be used to get you the best medical service available, or you can use it to spend quality time with your family.

The Need for Trauma Insurance

You might be thinking that there is no need for Trauma Insurance cover since you are at the peak of your health. Although no one wants to be a bearer of bad news, surveys show otherwise:

  • The possibility of being diagnosed with cancer before a person turns 75 is 1 in 3 for males and 1 in 4 females. Furthermore, the risks become higher as you age with probability of 1 in 2 males and 1 in 3 females before age 85.
  • Heart attacks, stroke, and other cardiovascular illnesses are the major causes of death among Australians with a 7.5% in the age bracket between 55 and 64 years old. Furthermore, the risk of a person having heart diseases is increased to 20.3% under the age bracket of 75 years and older. Surveys also recorded that men are more likely to have a heart disease than women.
  • 2003 had shown a record number of 146,400 Australians who have suffered from stroke-related illnesses. Stroke and heart attacks are two of the major illnesses who claim a number of lives in Australia. Just look at the 80% of people who suffer from stroke with men making up the larger number.
  • A report has shown that 1 in 2 women and 1 in 4 men before the age of 60 are likely to suffer from an osteoporotic fracture which could cause chronic pain, loss of mobility, and even death. If you would translate this ration that would give you a total figure of 600,000 Australians diagnosed with osteoarthritis – a figure that has already been declared a fact.
  • A lot of Australians, especially men, are in occupations which involve a lot of risks. These types of jobs expose a worker to accidents that could lead to serious injury and disability. The Australian Institute of Health and Welfare has shown that most causes of brain injuries are falls which is in 40%, vehicular accidents at 31%, and assault at 14%

Given the above statistics, you have now an idea whether Trauma Insurance is needed or not. Even with the latest medical breakthroughs increasing life expectancy and battling critical illnesses, there is still a possibility that most people would suffer a type of critical illness in their life.

Moreover, although you would be able to physically survive a critical illness, you could be significantly affected financially – an effect that could spiral into a lifetime of debts and other financial obligations. Trauma insurance is another element of a risk insurance plan that would help you face the risks.

Types of Illnesses Covered in Trauma Insurance

Trauma Insurance basically covers the most common illnesses, such as cancer, heart diseases, and stroke. But aside from these, it also covers more than 40 types of critical illnesses which are considered life-threatening. Some of these types of illnesses are:

  • Total and Permanent Disability
  • Quadriplegia
  • HIV ( if acquired occupationally)
  • Parkinson’s Disease
  • Kidney Failure
  • Multiple Sclerosis
  • Chronic Lung Disease
  • Major Head Trauma
  • Coma
  • Severe Burns
  • Muscular Dystrophy
  • Coronary Bypass Surgery

This list will vary slightly between insurance providers, however, there are certain illnesses that are not covered even if they fall under one category of a critical illness. An example is skin cancer, although it is a type of cancer, is not considered life threatening. In addition, a broken leg is also not covered because it is supposed to heal in 6 to 8 weeks.

Benefits of Trauma Insurance

Having trauma Insurance helps you weather the emotional and financial stress brought about by a critical illness. Critical illness insurance could give you a lot of things, especially choice –

  • Choice of Medical Service – The lump sum you will receive can help you choose the best medical service and care available.
  • Choice of Lifestyle – It would also free your savings from being used to pay for the medical expenses incurred by the illness. Instead, you can use your money to maintain the same lifestyle you have without worrying.

Trauma Insurance is about protection and choice. The choice that you make now will affect the protection you will have tomorrow.

Maurice Thach

An insurance researcher and writer for who loves finding an answer to the question "Am I covered for ________?" Maurice has also completed a Tier 1 Life Insurance and a Tier 2 General Insurance Certification under ASIC's Regulatory Guide 146. This means he can confidently provide general advice for life insurance and non-life insurance products.

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