Trauma Insurance


How does trauma insurance work?
With trauma insurance you can choose a lump sum that will be paid out to you should you suffer one of a list of conditions that the policy offers cover for. You can use the lump sum for whatever you want. The insurance will only pay out if the condition you suffer is on the list of conditions specifically covered and defined by the plan – if you were to suffer a condition not “on the list” you won’t get paid.

Is it the same as Critical Condition insurance?
It does go by a lot of names – some companies call it Critical Condition Insurance. You might also hear Living Insurance, or Serious Care.

What kind of conditions are we talking about?
We’re looking at some of the most serious illnesses and events you can face. A few examples – paraplegia, invasive cancer, multiple sclerosis, Parkinson’s disease, heart attack, stroke or having to undergo certain types of surgery

How about permanent disablement – is this covered too?
Some companies offer cover for permanent disablement under their trauma plan – while other companies cover permanent disablement under its own plan (a standalone plan). Make sure you know which applies to any plan you’re looking at.

Do all plans pay out for the same conditions?

No. Although there is a fair degree of overlap, companies often cover different selections of conditions. Also, the number of conditions covered varies, some plans cover 20 or 30 different conditions – others fewer.There are two main types of Total & Permanent Disability – if it is in relation to your particular OCCUPATION or ANY other TPD.

How much does it cost?
Your premium is based on things like your age, gender, and the amount of cover you choose. Also, if you’re a non smoker you’ll pay less. For permanent disability, your occupation is also a factor.
I think I have trauma cover included in my life insurance – is this a good idea?
Often Trauma cover is included with a life insurance policy. One thing to consider here is that the policy might only pay out once. For example, if you were to develop one of the conditions covered, received a payout, and then later died, your life insurance might have been “used up” by the first payout for the trauma condition. If the Trauma and Life policies hadn’t been connected there would have been two payouts – one for the Trauma condition and one on death.