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
           Burns - severe/major
           Coronary artery angio
           Coronary bypass surgery
           Heart attack            


           Heart valve surgery
           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            


           Parkinson's Disease
           Pulmonary hypertension
           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 11 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.