Experiencing a serious illness or injury can prevent individuals from returning to work. Trauma insurance can help support families through particularly tough times and pay for costs that may arise from medical bills

If you opt for trauma insurance, then, if you experience a serious injury or critical illness, you will receive a lump-sum payment. Cancer, heart conditions, major head injury, or stroke could all qualify an individual for a trauma insurance payout.

Remember that what is covered under a trauma insurance policy differs between insurers, so you should always read their terms and conditions. These will be contained in the product disclosure statement (PDS).

The lump-sum payment you receive can be used for the following expenses:

• Out-of-pocket medical costs
• Living expenses for you and your family for the period you are unable to work
• Costs of therapy, nursing care, and any special transport you may require
• Changes to housing to accommodate for your medical needs
• Paying off debts (mortgage, etc.)

If you have income protection insurance or total permanent disability insurance, then you may not need additional trauma insurance. However, if you are particularly concerned about potential serious risks, then consider consulting a financial adviser regarding acquiring trauma insurance.