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Critical illness insurance

Medical traumas are an unfortunate reality, and can change people’s lives forever.  The expenses associated with such traumas can magnify the problem as suffering a trauma can expose you to unforeseen expenses associated with the event.

Critical illness or trauma insurance provides a cash lump sum on the diagnosis of a medical condition. The number of conditions covered (benefits) varies widely with cheaper policies often offering fewer benefits. The most common claims under these policies are for cancer, heart attack, coronary bypass and stroke, although other conditions can be covered.

Trauma insurance pays a lump sum benefit that can be used for:

  • Medical costs, eg if you have a rare form of Cancer and you require a specific operation that costs thousands of dollars wouldn’t it be good to have a lump sum that would pay for this. 
  • Rehabilitation and recovery costs
  • Refitting your home or relocating to more suitable accommodation
  • Paying off outstanding debts or providing and ongoing income, or
  • A professional carer to enable your partner or family to reduce their working hours to look after you.

There are some very compelling statistics that suggest that there is a good chance that we will suffer a traumatic event over our working life. As there are continual improvements in medicine the chance of surviving a trauma event is increasing and therefore it is more likely that we will survive for longer and hence claim on a trauma policy.

Dr Marius Barnard is considered to be the ‘father’ of trauma insurance as he is credited with inventing it. He is a South African surgeon who took part along with his brother, Christian Barnard, in the world’s first heart transplant in 1967.

Having completed many surgical operations since, Dr Marius Barnard says he has seen many medical success stories as surgical techniques have improved. “But when I went into private practice I could not help but notice that while many patients fully recovered medically, they suffered severe financial problems. This was not because of the cost of the operation but because of the disruption to their lives and their loss of income.”

In an article from Dr Marius Barnard released in 1994 he claimed that:

  1. We have an 80% chance of suffering cancer, heart attack or stroke during our lifetime;
  2. We have a 70% chance of recovering from cancer, heart attack or stroke.

By taking out trauma cover we are insuring against a probability, not a possibility and the chances are we will be around to benefit from a claim.
The risks are real!


  • Cancer is a common disease and a major health problem in Australia.
  • An estimated 128,000 new cases of cancer will be diagnosed in Australia this year (figures current for 2015).
  • One in two men and one in three women will be diagnosed with cancer before the age of 85.
  • Over 60% of cancer patients will survive more than five years after diagnosis.

Cardiovascular Disease, including Heart Attack
  • Affects more that 3.5 million Australians.
  • 1.4 million Australians are prevented from living a full life because of disability caused by cardiovascular disease.
  • This is the most expensive disease group in terms of direct health care expenditure.


  • Stroke is the leading cause of long term disability for Australian adults.
  • Each year, around 60,000 Australians have a stroke and one third of victims will die in the first twelve months.
  • Almost one in five people who experience a stroke are under the age of 55.

For more information please contact our office to speak with one of our insurance specialists who can assist you in selecting an appropriate trauma policy and a suitable amount of cover.