Trauma Insurance provides cover for when you are impacted by a serious illness or injury which usually require extensive medical treatment and may prevent you from working. Illnesses and injuries included in "Trauma" vary from insurer to insurer.

Trauma Insurance is paid out as a lump sum and is designed to provide financial support to help you manage your costs of living and treatment while you are recovering. You may choose to use this financial support for medical and rehabilitation treatment, paying of debts, general living expenses, home modifications or even saving for the future.

Trauma insurance generally covers major and debilitating illness or injury that requires extensive treatment to recover. Some examples of illness or injury that are covered by Trauma Insurance include:

• head injury
• organ transplant
• some types of cancer
• blindness
• burns
• heart conditions
• stroke

Different policies will cover different illnesses or injuries, and for any illness or injury you will need to pass the severity criteria specified by your policy to be eligible for payment. Mental Illness is generally not covered by Trauma Insurance. 

You should be careful to ensure you have set your level of cover high enough to cover your ongoing expenses should you become critically ill. Types of insurance that you may also consider alongside Trauma Insurance include Workers Compensation Insurance, Key Man Insurance, Key Person Insurance, Life Insurance, TPD Insurance and Income Protection Insurance.

Talk to an insurance broker specialising in Trauma Insurance to find out if you need Trauma Insurance.

Trauma Insurance and Total and Permanent Disability Insurance, or TPD, can be easily confused but they are different types of insurance covering you for different events.

The key is the word "permanent" in TPD. TPD insurance covers you for a situation where you are impacted by an illness or injury that is permanent, you won't recover. This will have an ongoing impact on your ability to work or even look after yourself physically. In this case, TPD insurance may be applicable to your situation.

Trauma Insurance, on the other hand, is generally applicable to a situation where you will be able to make a significant recovery following an illness or injury. Trauma insurance is designed to help with the financial burden of this recovery and make the path back to work easier.

The cost of your Trauma Insurance depends on various factors, but is directly related to the lump sum amount for which you are insured. Other factors that impact the cost of Trauma Insurance include:

• your age
• medical history
• lifestyle choices including smoking
• your job

The cost of your Trauma Insurance also depends on how you structure it and what type of cover you choose. For example:

• how much you are insured for
• if it is packaged with other Insurances such as income protection or life insurance
• whether the cover is structured to increase in cost over time (Stepped or Level)
• if you add inflation protection
• the Trauma definitions in the policy
• which insurer you choose

Be sure to speak to an Insurance Broker with experience in Trauma Insurance to make sure that you purchase a policy that suits your unique set of circumstances.

Using an Insurance Broker for your Trauma Insurance ensures that you have managed your unique risks. Every person is different and an insurance broker can help by assessing your specific risk profile and providing advice on the best Trauma insurance cover for you.

An insurance broker is able to compare policies from different Trauma insurers.

An insurance broker will also help when it comes time to claim, advocating for you to negotiate the best outcome in the settlement of your claim with the insurer. So whether you work in a high risk environment or know that your family would need financial assistance if you suffered a debilitating illness or injury, your Insurance Broker can assist you to find the best Trauma cover for you.