Trauma Cover Insurance

Definition of Trauma Cover Insurance

Trauma Cover Insurance pays a lump sum in the event of a diagnosis of incurable condition, e.g. cancer, stroke, heart attack, major head injuries.

Purpose of Trauma Cover Insurance

If a person suffers a medical trauma, term life insurance won't help as the person is still alive. Suppose a person has a mild heart attack and is seriously ill but is able to return to work after two months. Will he or she be as productive as before or stand the stress associated with working as hard? Policies like income protection and TPD Insurance may not be suitable since pay-out depend on the effect of the event after its occurrence. What is needed is a cover like trauma insurance which pays out on the actual occurrence of the incident.

Trauma insurance (also known as critical illness insurance) provides a cash lump sum in the event of contracting a specified disease or trauma. The number of conditions covered (benefits) varies widely, cheaper policies often offering less benefits.

In most cases "accidental" types of traumas are covered immediately, although many insurers impose a waiting period (commonly 90 days after the policy is accepted) for certain illnesses. Typically trauma cover policies will pay benefits in the case of some or all of the following critical illnesses:

Alzheimer's Disease
Aplastic anaemia
Blindness
Burns - severe/major
Cancer
Cardiomyopathy
Coma
Coronary artery angio
Coronary bypass surgery
Deafness
Dementia
Diplegia
Encephalitis
Heart attack

Heart valve surgery
Hemiplegia
HIV - occupational acquired
Kidney failure - chronic
Liver disease - chronic
Loss of independent existence
Loss of limbs and/or eye
Loss of speech
Lung disease - chronic
Major head trauma
Major organ transplant
Motor neurone disease
Multiple Sclerosis

Paraplegia
Parkinson's Disease
Pulmonary hypertension
Quadriplegia
Stroke
Terminal illness
Life Cover - death benefit
Total & Permanent Disability
Aortic surgery
Out of hospital cardiac arrest
Benign brain tumour
HIV - accidental infection
Peripheral neuropathy

The function of trauma insurance is to help:

  • Pay for specialist or international medical attention
  • Cover the cost of modifications to the home
  • Avoid financial stress in recuperation (debts, etc)

At Rate Detective we compare Trauma Cover from 12 Insurance Companies, so we are able to provide you with the most competitive price from our Insurance panel. If you are interested in Trauma Cover Insurance, or any other forms of income protection insurance, please feel free to make an enquiry and we will put you in touch with one of Trauma Cover Insurance consultants.

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Published on August 8-th, 2008 in Trauma Cover
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.