Insurance for a critical illness or serious injury.
A critical illness or serious injury can make it difficult to continue to work. Trauma insurance can help support you and your family at this time and pay for medical and rehabilitation costs.
What trauma insurance covers
Trauma insurance, also called ‘critical illness’ or ‘recovery insurance’ pays a lump sum amount if you suffer a critical illness or serious injury. This includes cancer, a heart condition, major head injury, or stroke. Trauma insurance does not cover mental health conditions.
What’s covered under a trauma insurance policy and medical definitions can be different between insurers.
Trauma insurance can be used to help pay for:
- out-of-pocket medical costs
- living expenses for you and your family while you’re unable to work
- the cost of therapy, nursing care, and special transport
- changes to housing if needed
- paying back your debt, for example, a mortgage
Is trauma insurance tax deductible?
Trauma insurance premiums are not tax deductible; however, the proceeds are tax-free in the event of a claim.
How much does trauma insurance cover?
Trauma Insurance at a minimum should:
- Cover around $200,000 of potential medical cover including potential carer costs and compensation for a potential drop in pay of the remaining spouse.
- Compensate for the Income Protection cap of 75% for a period of 2 years.