The risk of a financial trauma that follows on from a personal medical event is very real. Its life altering. I don’t mean to sound dramatic – but those that are unprotected and have a medical trauma will face an uphill battle to recover both physically and financially.

Although life insurance and health insurance are commonly known insurance types, medical trauma insurance doesn’t often get a mention. That means that the awareness of its benefits are low and many Australian’s are unnecessarily exposed to this financial risk.


Do you know if you are covered in the event of a Medical Trauma?

Most people will take out life insurance to ensure their loved ones are looked after when they pass away. Private health insurance is also common with Aussies to cover most of our medical expenses in the here and now. However, medical trauma insurance is just as vital and is often overlooked leaving a big hole in the protective umbrella our modern financial lives require.

Trauma insurance (also known as critical illness insurance) is designed to provide you with a lump sum if you are diagnosed with a traumatic condition – the big ones being cancer, heart attack and stroke.

Surviving the medical event is the main goal – however, the whole point of trauma insurance is to ensure you survive financially, while battling with a traumatic health condition.


Have you considered the difference this protection would make?

Although, many people think they’re fully covered for a traumatic illness under their private health insurance, this usually isn’t the case and therefore, most of us are unaware that we’re exposed until such as event occurs.

A moderate level of treatment, rehabilitation and expenses can be covered under most private health insurance policies, depending on your level of cover and extras chosen. However, no matter what type of health insurance policy you have, it’s unlikely to include everything required to keep you financially stable. At the end of the day, what’s the use in getting increased medical options but you can’t pay your home loan or buy the groceries for the week? Trauma insurance can plug the extra expense gaps not included in your health insurance policy.

A real lifesaver with trauma insurance policy is that your tax-free lump sum benefit is made whether you are able to work or not. It goes a long way to giving you the choices you need for treatment – as well as maintaining your financial obligations like loan repayments, groceries, school fees and car expenses. Trauma insurance even acts to replace a loss of income while you’re unable to work which is an additional benefit not included in private health insurance policies. So…. are you covered? If your answer is ‘no’, then this should be a priority right now to take the required steps to do so.