Trauma Insurance in Australia

What is Trauma Insurance?

Trauma insurance, or Critical illness insurance, is a type of insurance that pays out a lump sum if the policyholder is diagnosed with or suffers from a listed critical condition. These conditions may include:

• Heart attack

• Cancer

• Stroke

• Major head trauma

• Multiple sclerosis

• Organ transplant

• Severe burns

How Does Trauma Insurance Differ from Term Insurance and Life Insurance?

Here is how trauma or critical care insurance differs from term and life insurance plans in Australia:

Why Consider Trauma or Critical Illness Insurance in Australia?

Australian household income often relies heavily on one or two income earners. A serious illness can impact the ability to earn, adding financial stress on top of health concerns. Critical illness insurance provides flexibility by:

• Covering out-of-pocket medical expenses not included in Medicare or private health cover

• Paying for rehabilitation or home modifications

• Replacing lost income if you are unable to work

• Allowing time off work for recovery without financial stress

Who Should Consider Trauma Insurance?

Trauma insurance may be suitable for:

• Families with a mortgage and dependent children

• Self-employed individuals without access to sick leave

• Single-income households

• Those with a family history of chronic diseases

Why You Should Combine Trauma Insurance with Term Insurance?

Many Australians consider combining trauma insurance with term life insurance to build a well-rounded protection portfolio. While trauma cover provides financial support during recovery, term insurance ensures your family is financially secure in the event of death or terminal illness.

You can also select income replacement benefits with term insurance, where the payout can be structured as a regular monthly income instead of a lump sum. This approach helps replicate the lost salary for the family, easing their financial transition.

Points to Keep in Mind When Comparing Critical Insurance Plans

When reviewing trauma or serious illness insurance quotes, consider the following:

• List of covered conditions

• Definitions and exclusions

• Partial benefit options

• Waiting periods and survival periods

• Premium type (stepped vs level)

Note: Term life insurance quotes vary based on age, smoking status, and benefit amount.

Why Buy Term Insurance for NRIs from India?

Non-Resident Indians (NRIs) living in Australia can also secure term insurance for NRI from India. This can be beneficial due to:

• The premiums for term insurance for NRI are much more affordable than international term plans

• Claim GST waiver of term insurance of 18% and an annual discount of 5% on premiums

• The tele/video medical checkup feature with term insurance ensures that you don’t have to travel all the way back to India just to get your medicals cleared

• By purchasing online, you can save yourself from the hassle of 

• Optional critical illness riders are available with select term insurance providers

How to Buy Term Insurance for NRIs from Policybazaar?

You can buy term life insurance for NRIs in the following ways from India:

Step 1: Visit the Policybazaar’s term insurance for NRI page

Step 2: Fill in your name, gender, contact information, and more

Step 3: Choose the right smoking habit, annual income, educational qualifications, and occupation type

Step 4: Select the best term insurance plan and proceed to pay

Final Thoughts

Whether you are safeguarding your household from income disruptions due to illness or planning long-term protection, trauma insurance and term insurance are essential tools in Australia’s financial planning environment. By understanding what critical insurance covers and how it complements life and mortgage protection policies, individuals can make informed decisions tailored to their needs.