Trauma Insurance

By the early 1980's, insurers realised modern medicine meant previously killer diseases - such as cancer, heart attacks, strokes and tumours - were no longer an automatic death sentence.

However, these diseases often left the survivor with monstrous bills, both medical and lifestyle.

Trauma insurance was born.

Major Trauma Recovery Benefit (or Critical Illness Cover) is paid as a lump sum on diagnosis of specified medical conditions. The number of specific medical conditions varies between insurance companies.

Ensuring that funds are immediately available for the best medical attention.

One example is a stroke that might leave someone with paralysis in some of his or her limbs.

Apart from potentially tens of thousands of dollars worth of medical bills and ongoing treatment costs, they might find they can't walk up or down steps around the home anymore, they might need to put in a ramp to the front door, or make adjustments in the bathroom to allow easier access.

So how much trauma cover? As always, it depends on the individual's situation. Some people apply for $100,000, while others may prefer more.

Guide to using Insurance to transfer risks