Trauma Insurance
Providing a lump sum in the wake of a critical illness such as heart attack, stroke or cancer.
Providing a lump sum in the wake of a critical illness such as heart attack, stroke or cancer.
Trauma (or critical illness) insurance provides a lump sum upon diagnosis of a specified illness such as heart attack, cancer or stroke. Although the funds from a claim can be used for any purpose, the cover is designed to meet the unforeseen costs resulting from a trauma event such as medical expenses and loss of income. This cover is typically held personally with premiums not deductible and benefits received tax-free.
The below points are drawn from claims experience of Austbrokers Life from 1 July 2021 to 30 June 2022.
Average age
at claim
of clients held
other insurance
Related to
heart conditions
Average
claim paid
Although in Australia we have a wonderful public health system and this is supported by a strong private health system, the financial impact of an unforeseen trauma can have a drastic impact, especially those conditions with a lifelong impact. The policy wording of trauma insurance is essential and varies greatly between insurers and policies so care should be given when considering this type of cover.