Have you ever heard people talk about trauma insurance and wondered what it is?

Trauma cover can be a valuable part of your personal insurance protection. It helps to know what it is, what you can expect it to do and the kinds of situations where you might benefit from that protection and be able to make a claim.

What is trauma insurance?

Trauma insurance is also sometimes referred to as critical illness cover or serious illness insurance.

It’s a type of personal insurance that is designed to pay a lump sum if you suffer one of a range of specified serious medical conditions.

It pays out a lump sum, that you can use for whatever you need it for. You might use the money to pay off debt to give your budget some breathing room, to pay for earlier or alternative treatment, or even to renovate your home to make it easier to live in – depending on the nature of the trauma that occurs.

What conditions are covered?

It’s a common misconception that trauma insurance will pay out whenever you encounter something traumatic.

Trauma insurance policies cover a range of serious conditions that are specified in the policy itself.

These can vary a little between insurers but generally include serious cancers, serious heart attacks, strokes, loss of a limb, Parkinson’s disease, organ failure, major transplants, severe burns or paralysis.

If you’re considering taking out new trauma insurance, or have existing cover in place, it is a good idea to look at the conditions your policy will cover. That means you’ll know what to expect and understand when you might be able to claim.

How a claim generally works

If you suffer one of the specified conditions and have existing Trauma insurance, you make a claim. A SHARE adviser can help you compile the paperwork that you will need, including the required medical evidence of your condition.

The insurer then assesses the claim and determines whether it meets their criteria for a payout. If it does, the lump sum specified in your policy is paid directly into your account.

Definitions are important

Definitions matter with all insurance policies, but with trauma cover it’s especially important. The conditions a policy will pay out for are usually strictly defined, and the severity of your condition may need to meet a certain threshold before a claim can be made.

We can help you better understand what the definitions in your policy mean, and what to expect if you ever need to make a claim.

We can also help you work out an appropriate level of trauma cover that fits within your budget, while making sure you still have meaningful protection when it counts.

Want to talk?

If you’d like to talk about trauma insurance, or any other aspect of your personal life cover, get in touch with the SHARE team. We’re here to help with any questions you may have.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.