What is trauma or critical illness insurance?

At NobleOak, we understand that life insurance can seem confusing at first. We’re here to make it clearer, so you can make fully informed choices.

In this article, we’ll provide easy-to-understand information about trauma insurance (which is sometimes referred to as critical illness insurance). In doing so, we’ll also unpack key terms such as ‘serious injury’ and ‘terminal illness’.  Keep reading for answers to frequently asked questions about trauma insurance and discover the key benefits of trauma insurance.

Critical illness insurance explained

NobleOak offers trauma insurance, which provides a lump sum payment if you are diagnosed with a critical illness or medical condition (e.g., cancer, heart attack) that is specified in our Product Disclosure Statement. Other insurance companies might refer to this type of insurance as ‘critical illness insurance’, or serious illness insurance.

If you have a trauma Insurance policy and you become unwell with one of the medical conditions listed in your policy, if eligible, you’ll receive a payment to help ease some of the financial strain you might be experiencing. This may be beneficial to people who are facing costs related to ongoing treatment expenses, and various lifestyle adjustments. A payment may also help cover living expenses if you’re not able to work and earn an income.

What conditions are covered?

NobleOak’s Trauma Insurance provides cover for 37 trauma events and critical medical conditions. The most common claims are for:

• Cancer (excluding some specific early-stage cancers)
• Heart attack, with evidence of severe heart muscle damage
• Stroke resulting in specified permanent impairment
• Coronary artery bypass through open chest surgery

A full list of the conditions covered and more information on the benefits and features can be found in the PDS. .

How can trauma insurance help?

Trauma insurance can help provide financial support if you are diagnosed with a major illness or injury condition.  Each insurer will specify in their PDS which major illnesses are covered.   A lump sum cash payment from a trauma insurance policy may make it possible to focus on your recovery, without worrying about the burden of the cost of excess medical treatment or lost income if you had to take time off work.

In the event of a claim, you could also use the payment to enhance your quality of life. Consider the following:

• Accessing specialised medical care that may not be covered by a health insurer whether domestically or internationally
• Modifying and renovating your home to support your mobility and comfort
• Helping reduce significant debt, such as a mortgage
• Financially supporting your partner or other family members whilst you recover
• Accessing in-home nursing and other support services
• Taking a stress-free holiday to assist with your recovery

Will trauma insurance help my family?

Suffering a critical illness or injury can be a life-changing event for you and your loved ones. The financial impact can continue for years, even if you make a full recovery. Trauma insurance may help keep your family’s finances stable during what would be a difficult time.

A lump sum payment from a trauma insurance policy can safeguard your family’s financial future, ensuring they can maintain the quality of life they’re accustomed to and meet ongoing expenses, such as household bills and mortgage payments. It can also provide long-term financial support to help your family cope with the impact of your illness or injury, even after your recovery.

Do I need trauma insurance?

Everyone’s situation is different. Depending on your circumstances, certain types of life insurance will be more suitable than others. NobleOak’s Trauma Insurance covers you for 37 serious medical conditions that can occur at any age.

Some critical health conditions are more common and predictable than others, but no less serious and debilitating. Over 49% of Australians have a chronic health condition, and 20% have more than one. Not all of these conditions would qualify as critical illnesses, but many would. Cancer diagnoses are rising, with almost 170,000 new cases expected to be diagnosed in 2024. Sudden events, such as a stroke or heart attack, can be incapacitating, and 1.3 million Australians were affected by cardiovascular disease in 2022. Statistics show that an average of 155 coronary events happen every day.

When deciding if you need trauma insurance, consider:

• How much income would you and your family require if you need to take some time off work, and your earning capacity is affected?
• Do you hold pre-existing income protection or total and permanent disablement (TPD) Insurance that could compensate for lost income?
• Does your private health insurance cover certain medical expenses?
• How much support could you receive from family or friends?

Read our article: Learn more about choosing trauma Insurance or visit our FAQ page for more information.

What’s the difference between critical and terminal illness?

When choosing a life insurance policy, it’s important to understand the terminology. ‘Critical illness’ and ‘terminal illness’ are terms that sometimes cause confusion. Both of these terms refer to serious medical conditions – the distinction is in the prognosis.

Let’s take a closer look at the differences between the two:

Critical illness

The term ‘critical illness’ within a Trauma insurance policy refers to a serious, life-threatening condition. These days, many people recover, or adjust their lifestyle to ensure they can still maintain a good quality of life, even if the condition is progressive.

• Examples can include:
  Cancers – excluding specified early-stage cancers
• Coronary Artery Angioplasty – through specified procedures
• Stroke – in the brain resulting in specified permanent impairment
• Multiple Sclerosis
• Blindness – total and irreversible in both eyes
• Paraplegia – total and permanent

Terminal illness

When insurance companies talk about ‘terminal illness’, they are referring to life-threatening conditions or end-stage diseases that can’t be cured. Most life insurance policies require that one or more medical practitioners confirm that the condition is likely to result in death within one or two years.

If you hold Life insurance with NobleOak and become terminally ill, we will advance the Death Benefit cover amount instead of paying this when you die. To receive this, you must be diagnosed as being terminally ill by two Medical Practitioners, one of which is a specialist practising in an area related to the illness or injury, and they must agree that your condition is likely to be fatal within 24 months.

Finding the right trauma insurance for your needs

If you’re thinking about taking out trauma cover, it’s important to consider the following factors:

• Benefit amount: When deciding on a benefit amount, most people choose an amount that will help them adjust their lifestyle, and assist with their medical treatment, household expenses and possibly provide an ongoing income stream.

• Existing insurance policies in your name: If you have other insurance policies, such as, for example, income protection insurance, you might wish to take out less trauma cover.
• Suitability of other types of insurance policies:  It will depend on your individual situation as to which life insurance products are most suited to you. These factors include things like your age, your current health and your current dependents.

For more information, explore our guide on how to choose the right insurance.

FAQs

Can I get trauma (critical illness) cover without life cover?

It depends on your insurer. At NobleOak you can purchase trauma insurance either as an option within life cover or as stand-alone cover, without life cover. While you can purchase most of our products online or over the phone, if you would like a stand-alone trauma insurance quote, please call us on 1300 041 494 so we can discuss this further with you.

Does trauma insurance cover terminal illness?

NobleOak’s trauma insurance provides you with a lump sum if you are diagnosed with one of 37 serious medical conditions as outlined in our PDS.  This is regardless of whether it is a terminal illness. If you also hold NobleOak Life Insurance and become terminally ill, we will advance the Death Benefit cover amount instead of paying it when you die. To receive this, you must be diagnosed as being terminally ill by two Medical Practitioners, one of which is a specialist practising in an area related to the illness or injury, and they must agree that your condition is likely to be fatal within 24 months.

What does critical illness insurance cover?

NobleOak’s Trauma Insurance provides cover for 37 trauma events and critical medical conditions. The most common claims are for:

• Cancer (excluding specified early-stage cancers)
• Coronary artery angioplasty – through specific procedures
• Coronary artery bypass – through open chest surgery
• Heart attack – with evidence of severe heart muscle damage
• Stroke in the brain resulting in specified permanent impairment

Other trauma events covered include:

• Accidental HIV Infection – contracted through occupation or medical procedures
• Alzheimer’s Disease / Irreversible Organic Disorder – permanent and of specified severity
• Aplastic Anaemia – requiring specified treatment
• Bacterial Meningitis – resulting in significant permanent impairment
• Blindness – total and irreversible in both eyes
• Cancers – excluding specified early-stage cancers
• Cardiomyopathy (heart failure) – resulting in significant impairment
• Chronic Liver Failure – of specified severity
• Chronic Lung Disease – requiring long-term oxygen therapy
• Coma (impaired consciousness) – of specified severity and requiring specific treatment
• Coronary Artery Angioplasty – through specific procedures
• Coronary Artery By-Pass through open chest surgery
• Dementia – resulting in significant cognitive impairment
• Diplegia – total and permanent
• Heart Attack – with evidence of severe heart muscle damage
• Heart Valve Replacement – through specific procedures
• Hemiplegia – total and permanent
• Kidney Failure – requiring regular renal dialysis or renal transplantation
• Loss of Hearing – profound and irreversible (except by Cochlear implant)
• Loss of Independence – total and permanent
• Loss of Limbs and/or Sight – total and permanent
• Loss of Speech – total and irrecoverable
• Major Brain Injury – resulting in significant permanent impairment
• Major Burns – of specified severity and requiring specific treatment
• Major Organ Transplant of specified organs from a human donor, or placement on a waiting list
• Motor Neurone Disease
• Multiple Sclerosis
• Muscular Dystrophy
• Three Vessel Coronary Artery Disease – requiring specific treatment
• Paraplegia – total and permanent
• Parkinson’s Disease and specified Parkinson Plus Syndromes – with specified severity
• Pulmonary Arterial Hypertension (idiopathic and familial) – resulting in significant right heart failure
• Quadriplegia – total and permanent
• Stroke – in the brain resulting in specified permanent impairment
• Surgery to Aorta – thoracic and abdominal aorta excluding its branches
• Viral Encephalitis – resulting in significant permanent neurological impairment

Please refer to the Product Disclosure Statement for the medical definitions of these conditions. The medical definitions that NobleOak uses may differ from some common perceptions of these conditions. From 1 July 2017 NobleOak abides by the life insurance industry approved definitions for at least the three main trauma conditions of cancer, heart-attack and stroke. The approved definitions can be found here.

Get the right coverage with NobleOak

NobleOak is a trusted trauma insurance provider with five consecutive years of Platinum Trusted Service. We are also the most awarded Australian direct life insurer five years running. We are dedicated to helping you find the best cover for your circumstances.

To get started, give us a call or request a quote today.

 Any financial product advice is general in nature only and does not take into account your individual circumstances, objectives, financial situation, or needs. Before acting on it, please consider the appropriateness of the information, having regard to those factors. Any third party websites or tools referred to are subject to their own terms and conditions and NobleOak Life Limited makes no representation or warranty as to any information on those websites. Persons deciding whether to acquire or continue to hold life insurance issued by NobleOak Life Limited should consider the relevant Product Disclosure Statement, Financial Services Guide (FSG) and Target Market Determination for the product. NobleOak Life Limited ABN 85 087 648 708 AFSL 247302.