Trauma Insurance

Trauma Insurance provides a lump sum benefit if the insured person is diagnosed with a specific medical condition listed in their policy i.e. heart attack, cancer or stroke.

What is Trauma Insurance?

Trauma or critical illness insurance provides a lump sum benefit if the insured person is diagnosed with one of the specific medical conditions listed in the insurance policy.

The medical conditions covered vary with each insurance provider, but generally cover cancer, heart attack and stroke. Trauma insurance may be offered with term life insurance as linked cover. When trauma insurance is taken out with term life insurance, trauma sum insured cannot exceed the term life sum insured. Trauma insurance can also be taken out as stand alone cover. A trauma insurance benefit may be used to:

pay for rehabilitation costs
pay for changes to lifestyle, for example, refit the home
enable the insured person’s partner to reduce their working hours to look after the insured person, or arrange a carer to look after them
pay off debts including the mortgage, and
provide an income for the insured person and their partner.

As people are becoming more aware of the statistical chances of suffering a critical illness condition or major trauma, the need for trauma insurance is becoming more of a priority.

A trauma insurance benefit is paid when you are diagnosed with a "qualifying condition" as set out in the insurance policy. It is generally paid as a lump sum when you are diagnosed with a specified illness, and can be used to cover lost income, medical and rehabilitation costs, and other varying expenses such as mortgage repayments.

A major trauma can affect you and your family’s physical and emotional wellbeing. A lump sum can help towards easing the stress during what is most likely to be a stressful time. A qualifying condition for trauma insurance varies between providers.

Benefits are paid when the insurer receives a certificate from a qualified medical professional. Trauma insurance is not generally offered within superannuation. Trauma insurance is available if you are not currently employed, unlike some other forms of insurance.

Do you need trauma insurance?

If you had a mild heart attack, then became well enough to return to work after three months (once you had fully recovered), you may not be able to claim under your term life, total and permanent disablement or income protection policies (dependent on waiting periods) as your illness was not sufficiently long-lasting. Trauma insurance can help to fill the gap between term life, total and permanent disablement, and income protection insurance, and encompass scenarios not covered by other policies. If you have a family history of serious illness, or even a high risk/high stress job, trauma insurance may benefit you.

What are the usual listed events on a trauma policy?

An insurance provider may typically cover the following medical conditions:

aplastic anaemia
blindness
cancer
cardiomyopathy
primary pulmonary hypertension
chronic liver failure
chronic lung failure
coma
coronary artery angioplasty (triple vessel)
coronary artery surgery
deafness
encephalitis
heart attack
heart surgery (open)
HIV – medically acquired
HIV – occupationally acquired
intensive care
intracranial benign tumour
loss of speech
major head trauma
major organ transplant
meningitis
muscular dystrophy
severe burns
paralysis
Parkinson’s disease
out of hospital cardiac arrest
stroke
multiple sclerosis
chronic kidney failure
repair or replacement of aorta
repair or replacement of valves
dementia

What affects the cost of my policy?

Premiums vary depending on the level of cover you require, your age, and your medical history.

How do I get a Quote?

At Two Mile Bay we have access to 12 different insurers.

To obtain a quote please call (03) 52 615 557 or email advice@twomilebay.com.au