Trauma insurance also known as critical illness insurance is something that many families are turning towards in order to cover the high costs associated with a critical illness. These policies can provide peace of mind in the event that a family member receives a trauma diagnosis.
Trauma policies will pay a tax-free lump sum, in the event that the policyholder is diagnosed with a trauma event that is listed in the policy. Insurers require the policy-holder to survive a certain number of days after the diagnosis of the event, generally between 8 and 14 days. Think of trauma cover as being on you, and for you so that you are not a financial burden on the family. Most well-rated insurers also cover your children after the age of 2, for up to $50k of free cover.
