A trauma insurance benefit is generally paid as a lump sum when you are diagnosed with a qualifying condition as set out in the insurance policy e.g. heart attack, stroke, cancer, open heart surgery or head trauma.
The sum insured can be used to cover lost income, medical and rehabilitation costs and other varying expenses such as mortgage repayments or childcare.
A major trauma event can affect you and your family’s physical and emotional wellbeing. A lump sum payment can help to ease the stress and provide you with financial peace of mind.
Trauma cover can be held as either a stand-alone policy or as an extension of other cover e.g. life cover. You can also access other forms of cover e.g. life, TPD or income protection that will pay you some form of basic trauma benefit in the event that you suffer a listed condition. Due to legislative restrictions, trauma cover is not generally available through Superannuation.
It is crucial that you seek professional advice to determine your need for and level of trauma cover that can provide you with a comprehensive set of definitions for a fair cost.