1 July 2021 (updated every January)
"It won't happen to me..." Maybe you're right. Maybe bad things only happen to other people. But that doesn't mean you want to risk being caught unprepared – and uninsured.
Some sobering facts
Trauma insurance, also known as critical illness insurance, provides a lump sum benefit in the event that the life insured suffers a "critical illness condition" as defined by the insurance provider. Trauma insurance is designed to help you recover financially from a trauma or crisis, such as a heart attack, stroke, cancer or other life threatening conditions.
Medicare and private health insurance do not cover all the costs. Health cover may be limited in the choice and flexibility of treatments. It often does not cover hospital and treatment expenses in full, and some conditions aren't covered at all. Out of pocket expenses such as the cost of a carer and rehabilitation expenses aren't covered, nor is the income lost from time off work. Similarly, Government allowances and benefits often don't go very far in covering you against all the costs involved in a major accident or serious illness.
Trauma insurance pays you a tax-free lump sum for a range of specified life-threatening illnesses or injuries.
There are no restrictions on how the payment is spent. It can be used to cover out of pocket expenses such as:
1 Cancer in Australia: an overview 2012, Australian Institute of Health and Welfare 2012
2 Australian hospital statistics 2012 – 13, AIHW, October 2013
3 Australian hospital statistics 2012 – 13, AIHW, April 2014