5 reasons why you need trauma cover
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5 reasons why you need trauma cover

5 reasons why you need trauma cover

By Bree Hanslow

Over 18,000 Australians were diagnosed with breast cancer in 2018 (Australian Institute of Health and Welfare). Doesn’t that statistic alone make you think you should have Trauma insurance?

Trauma cover is something both men and women should have as part of a well-constructed Insurance Plan. One of the hardest things to be confronted with when you’re unwell is the thought of not having finances to pay the bills or obtain the treatment you need to get better.

As a planner, having seen the financial impact on women when it comes to the additional costs associated with cancer treatment, it’s something I highly recommend as a must have.  Trauma cover will pay you a lump sum when diagnosed with a medical condition that satisfies the insurer’s definition. It is not dependent on whether you return to work or whether you work at all.

It is paid as a lump sum usually starting at $25,000 and up to $600,000. Trauma cover is the one insurance which can help with ongoing medical costs for treatment, helping close the gap between private health cover and out of pocket expenses. It provides a sum of money allowing patients not to worry about the costs of travel, accommodation, medical devices, pain relief medication, personal care such as managing mouth ulcers during radiotherapy, taking care of children, cooking, cleaning, gardening and the day to day chores we all take for granted. These costs can add up very quickly.

Life and Income Protection are the two most common insurances the average Australian holds. Trauma on the other hand is often seen as a “luxury insurance”. Believe it or not, considering 1 in 2 of us may be diagnosed with some form of cancer in our lifetime, there is little awareness about how essential this cover is, especially for women. Here are five reasons you should have Trauma insurance:


1. Fertility Treatment and Surrogacy

Having children is something most women will do in their lifetime, and cancer treatment involves a number of uphill challenges, including early onset of menopause which can be particularly difficult for young females who haven’t started a family yet. You may have to fork out a lot of money to keep your eggs on ice until Mr Right comes along, and then when he does, you may need to find thousands of dollars to cover the cost of more IVF treatment or Surrogacy (anywhere from $10,000 – $90,000) to have just one child.

2. Breast Reconstruction Surgery

Breast implants, and reconstruction can cost up to $15,000 through the private health system, the alternative for women is to be placed on a public hospital elective surgery list which can result in waiting periods of up to two years or more.

3. Childcare and Home Assistance

A payment from a trauma policy can assist in many ways, it may allow a family member to take time off work to support you, pay for child care or home assistance so you don’t need to worry about doing the house work and allow you to focus your energy on getting better.

4. Travel and Accommodation

For those of us that live in regional areas the cost of travel and accommodation to receive treatment is reported to be an extremely costly aspect of treatment as well as medical appointments and co-payments for medications. The final amount can really start to add up, with the average travel and accommodation costs around $5,000.

5. Live life to the full while you can!

Many of us have a bucket list, and if a diagnosis is terminal wouldn’t you like to be able to spend any precious time left with family? Have the option to travel and not have to work? Sometimes Terminal Illness claims can be complicated and lengthy and when time is precious, an immediate payout from a Trauma policy can mean the absolute world to your family.


What other conditions can be covered Trauma Insurance?

• Heart Attack / Disorder

• Severe Diabetes

• Motor Neurone Disease – MND

• Multiple Sclerosis

• Liver or Kidney Failure

• Severe Accidents (Burns, Coma, Head Trauma)

• Stroke, and others.

When is the right time to get Trauma cover?

There is no right time as you never know when you will need cover the most. The younger you are, the easier and cheaper Trauma cover is, so you are better off getting it now rather than later. If you suffer a traumatic event or medical emergency before applying for Trauma cover, unfortunately you won’t be covered, that would be like applying for home and contents insurance the day after your house burnt down.

How can I get hold of Trauma insurance?

You can’t hold Trauma Insurance in your Superannuation like Life, Disability and Income protection, so ask your financial adviser to suggest the right product and cover amount for you. Knowing that you have trauma cover insurance will ease the financial burden of debts, thus giving you peace of mind allowing you to focus on your recovery.

If you have any concerns about trauma cover or what options you might need, our team are more than happy to have a confidential chat with you. Simply call us on 5821 9177 or email mbmshepp@mbmgroup.com.au to arrange a consultation.



This information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. Your individual situation may differ and you should seek independent professional advice.