Trauma insurance
Trauma insurance provides a lump sum payment where the insured person suffers one of a range of specific medical conditions, such as heart attack, cancer and stroke. Unlike TPD insurance, a trauma benefit does not depend on a person’s long-term diagnosis or their inability to return to work, but simply on the insured person’s survival for a set period after the occurrence of a specified condition. This means that payment of benefits may be more likely.
The lump sum benefit can be used to relieve stress and to allow re-orientation of lifestyle, such as:
- Change of employment
- Extended vacation
- Clearance of mortgage and other debts.
It may also be used to help fund extraordinary expenses generated by the condition such as home modifications or specialist medical attention.
The cost of trauma insurance can vary depending on the range of conditions covered and the measurement criteria set out to define whether a condition is serious enough to warrant payment of benefits.
