A trauma Insurance policy will cover you if you are diagnosed with an illness that impacts your life significantly. For example; heart attack, stroke, cancer or a serious accident.
Your trauma cover will pay a one-off lump sum amount which you can be used for any purpose you wish. It is most commonly used to pay for treatment costs that may not be available in your country or is above Medicare or your health insurance.
It can also be used to make life style changes such as reducing the amount of days you work to focus on healing or take pressure off finances by reducing your debt.
Do I need Trauma Cover and will I need it?
If you have children and a partner or are thinking of children in the near future it is a good idea to consider a trauma cover suitable for you. If you are still fit, young and healthy you can get cover with no medial checks or restrictions applied to your cover.
A major Australian insurer, Asteron Life, found that people in their 30’s only made 5% of claims however claims made by people in their 40’s was 68%.
Why is it not covered in my Workers Compensation?
Workers compensation is used to cover for any work place injuries and does not cover expenses such as your mortgage, childcare or household bills.
It is also not able to be included in your superannuation.
Disclaimer: The opinions and recommendations provided are not intended to be relied upon as personal advice as they do not take into account your personal circumstances. You need to assess your own position or call us for professional advice.
* The information on this page was sourced from Money Smart.