#1 What Is Trauma Cover & How Do I Access Benefits?

In Australia, traumatic events can happen without warning, affecting every aspect of your life. Trauma cover, also called critical illness insurance, is designed to provide a financial safety net during these difficult times. It offers a lump sum payment when you are diagnosed with certain serious illnesses or injuries, helping you and your family manage the financial impact of a life-changing event. If you think you or a family member might have a claim, you can get in touch with us here.

What is trauma cover?

Trauma cover provides financial support if you are diagnosed with a critical illness or suffer a specified injury. Conditions typically covered include cancer, heart attack, stroke, and major surgeries such as coronary heart surgery. Trauma cover is intended to compensate individuals for a significant trauma event, with payouts usually ranging from $100,000 to $500,000.

How trauma cover differs from other types of insurance

Trauma cover works differently from Total and Permanent Disability (TPD), Income Protection, and Life Insurance (Death Benefit) cover:

• Trauma Cover: pays a lump sum upon diagnosis of a covered serious illness or injury. The purpose is to compensate for a significant trauma event.
• TPD Insurance: pays a lump sum if you become totally and permanently disabled and are unable to work in any occupation suited to your skills or experience. Often included as default cover in your Super. Purpose: disability safety net.
• Income Protection Insurance: provides ongoing payments, usually a percentage of your income, if you cannot work due to illness or injury. May also be included in Super. Purpose: income replacement.
• Life Insurance (Death Benefit): pays a lump sum to your beneficiaries upon death or terminal illness. May also sit in Super. Purpose: provide financial security for your loved ones.

Making a trauma cover claim

Running a trauma claim can be stressful, especially when you are dealing with a serious illness or injury. Many people don’t realise that claims can be refused or delayed if key information is missing or not properly presented. That’s why legal advice can make a real difference.

Steps to making a claim:

1. Seek legal advice: make sure you understand your policy and whether your circumstances are covered. Trauma cover policies can have technical conditions and exclusions. Knowing the issues that will be assessed is critical before lodging your claim.
2. Submit your claim: provide your insurance provider with medical evidence such as doctor’s reports, test results, and treatment records. Ensure your documentation accurately reflects your condition and aligns with your policy terms.
3. Await assessment: the insurer will evaluate your claim. If approved, you will receive a lump sum payment to help cover medical costs, daily living expenses, or other financial needs.

At Carroll & O’Dea Lawyers, we know how much your trauma claim matters, to you and your family. Your financial security can depend on it, and we are here to guide you through the process, helping you put forward the strongest claim possible.

Talk to us

If your trauma claim is proving difficult, or has been refused, call us today. We offer a first appointment free, with no obligation, to review your claim and explain your options. We also work on a no win, no fee basis for trauma and TPD claims.