Why It’s Worth Considering Trauma Insurance

Published: July 28, 2013

Most people wouldn’t dream of driving without car insurance, or living in a house without home and contents insurance, so it is remarkable that the majority of Australians do not think about protecting their families through trauma insurance (critical illness insurance), in the event of serious illness.

With the incidence of cancer increasing year on year and the occurrence of cardiovascular diseases preventing many families from living a full life due to disability, it is becoming increasingly important to consider trauma insurance as part of a life insurance portfolio.

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Many Australian families struggle, both emotionally and financially, when someone in their family is diagnosed with a life threatening or debilitating health condition. By taking out trauma insurance, you can help ease the financial burden should you be unfortunate enough to suffer a traumatic event.

You might think ‘it’ll never happen to me’, but you may think again after considering these facts.


When considering trauma insurance Australia wide, Cancer has been the leading cause of death in Australia over the past six years, with more than 39,000 people estimated to die from it each year. 1 in 2 men and 1 in 3 women will be diagnosed with cancer before the age of 85. Amongst the most common cancers in Australia are cancer of the digestive organs, breast cancer, skin cancer, lung cancer and prostate cancer[i].

Prostate Cancer

  • Almost 3,000 men die each year of prostate cancer and around 18,700 new cases are diagnosed every year.
  • Each day about 32 men learn the news that they have prostate cancer – tragically one man every three hours will lose his battle against this insidious disease.

Breast Cancer

  • More than 2,640 women will die from the disease in a single year, that’s over 7 women each day.
  • One in 8 women will be diagnosed with breast cancer by the age of 85

Skin Cancer

  • Over 380,000 Australians are treated for skin cancer each year, that’s over 1,000 people every day.
  • Over 1,600 Australians die from skin cancer each year.
  • Australia has the highest rate of skin cancer in the world. Skin cancers account for around 80% of all new cancers diagnosed each year in Australia. Each year Australians are four times more likely to develop a common skin cancer than any other form of cancer.

Cardiovascular disease (CVD)

  • CVD is the term used for heart, stroke and blood vessel diseases.
  • CVD kills 1 Australian every 10 minutes and prevents 1.4 million people from living a full life because of disability caused by the disease.
  • CVD is one of Australia’s largest health problems. Despite improvements over the last few decades, the health and economic burden of CVD exceeds that of any other disease.

So what does Trauma Insurance in Australia mean?

Trauma Insurance in Australia pays a lump sum should your doctor diagnose you with a specified illness. It pays a lump sum which, depending on your level of cover, may be up to $2,000,000 on the diagnosis of a traumatic event. You can take out trauma cover between the ages of 16 and 64, depending on your insurer and it covers you 24 hours a day, 7 days a week anywhere in the world.

Each insurer differs, but most policies can cover you for a variety of crisis events.

How can trauma insurance benefit you?

Should you be diagnosed with a life threatening or debilitating health condition, trauma insurance may help you:

  • to pay for any additional medical bills or necessary treatment
  • to replace lost income while ill or recuperating
  • to pay for home care or auxiliary services while recuperating
  • to replace lost income while caring for a family member
  • to pay for rehabilitation
  • to pay for a change in lifestyle, for example, access ramps, wheelchairs or manual car controls

Case Study: Doug’s trauma insurance story

Doug has been working as an accountant for the past 8 years in Brisbane where he lives with his wife and three kids. Unfortunately for Doug and his family, he was recently diagnosed with bowel cancer. Doug’s diagnosis meant that he was required to undergo extensive chemotherapy, and as a result, he was unable to work for 6 months.

As you might imagine, Doug and his family were extremely devastated when the doctor diagnosed the condition. As well as dealing with the emotional stress, they also had to consider how they would pay for the mortgage, school fees, and other bills without Doug’s income.

Fortunately for his family, both Doug and his wife took out trauma insurance on top of their Term Life cover. When Doug received the news from his doctor, he submitted a claim to his insurance company. His claim was assessed and Doug received a lump sum payment of $250,000. The payment enabled Doug and his wife to pay for his medical fees; mortgage and school fees all of which his income would normally have paid for.

The lump sum payment meant not only that Doug and his family’s bills were taken care of, but also meant that Doug could focus all his energies on getting better instead of stressing about financial concerns.


Compare Trauma Cover Options
  • Critical Illness Insurance

    Critical illness insurance, also known as trauma insurance pays a lump sum should you suffer from a listed critical illness
  • Trauma Insurance for Diabetics

    Obtaining trauma insurance for diabetes sufferers is becoming easier as insurers understand more about diabetics however thier condition needs to be well controlled
  • Heart Attacks and Trauma Insurance Claims

    Heart attacks are the second highest trauma insurance definition claimed on in Australia. This is why trauma cover is so important for Australian Families
  • Trauma Insurance Guides

    Guides on trauma insurance options in Australia. Helpful guides to assist you in selecting the best policy & structure to maximise your cover

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