Trauma Insurance, also known as Critical Illness Insurance, is one of the most frequently claimed insurance policies, with 13% of all life insurance claims resulting from Trauma (2013). Everybody knows somebody who’s been diagnosed with a critical illness, for example, cancer, stroke or a heart attack.
Our guide highlights some of the key benefits of trauma insurance and how it can help protect you and your family from financial loss.
Cardiovascular disease (CVD) and stroke are also common trauma claims and are extremely common, with 3.4 million Australians living with the condition at the cost of $3 billion a year.
Although treatment for most critical illnesses is now readily available, the costs are exorbitant. If you have dependents and/or a family history (a potential predisposition to a critical illness), it’s a good idea to get trauma insurance.
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The main benefit of trauma cover is that it pays out a lump sum benefit, which can be used however you want.
You gain complete control over your money and can even invest it. Generally the highest lump sum benefit offered by insurers is $5 million; however, the amount needs to be both affordable and financially justifiable.
The lump sum benefit is designed to assist you and your family while you recover from your illness:
The first critical illness insurance was introduced in South Africa by Dr Marius Barnard. The renowned heart surgeon saw first-hand how his patients, living with heart disease and other serious illnesses, suffered financially.
I was used to operating on people and boasting about my great results of patients surviving five or six years. But all of a sudden I saw the social and financial implications. I know nothing about insurance, but I knew life insurance paid out on the diagnoses of death. But to me, my patients lived for years, but in this time they died financially.Dr Barnard
In March 1983, a small insurance company approached Dr Barnard with the intention of launching a new insurance policy, covering the four most common critical illnesses – cancer, heart attack, stroke and coronary artery bypass graft. In August 1983, Crusader Life took the policy to market.
Dr Barnard was invited to Australia to introduce and help promote Trauma insurance, but the initial response was negative, as most brokers preferred disability insurance. However, after a couple of years, the new policy took flight, and Trauma Insurance Australia thrived. Today, it is highly developed and a well-known life insurance product in Australia.
With this in mind, we suggest you already add critical illness cover to your life insurance and disability, when in your 20s and consider a level premiums structure. Level premiums can save you hundreds of thousands of dollars over the duration of your policy to age 65.
Several years back it was possible and permissible to have trauma insurance inside super. However, since 1 July 2014, Trauma cover in superannuation is no longer available. If you have a trauma insurance policy purchased before July 2014 held in a Superfund, strict conditions for release will need to be followed.
These new rules were implemented because if a critical illness did not prevent a person from working, the lump sum benefit could be retained within their SMSF until a condition of release was met, such as reaching retirement age.
As trauma patients generally require the benefit immediately upon diagnosis of a critical illness to help pay for medical bills and other debts, trauma cover is no longer allowed to be funded or held in a superannuation environment.
The quickest way to get a Trauma quote is to give us a call on 1300 135 205, or you can complete the trauma insurance quote form above, and a detailed comparison report will be sent to you for review.
Wondering how much trauma insurance you need? Our trauma cover calculator guide will take you through what to consider
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I would like a quote for my husband (64yrs)and myself aged 55yrs for Trauma/Critical Illnesses Cover.
Hi Rob and Debra
We have two ways for you to access quotes, firstly I would encourage you to complete a trauma quote request at the top of this page & one of our consultants can produce a comparison report for you to compare the premiums and features of the different critical illness policies available & discuss any discounts that may be available.
If this doesn’t suit, you may want to visit our Trauma Insurance Quote Index which can give you a quick comparison of premiums only for both Trauma & Life combined with trauma cover!
If you would like to discuss you options further please contact our office on 1300 135 205.