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What is the difference between Trauma Insurance and Health Insurance? Why do I need both?

Welcome to the third edition of NobleOak’s video series offering insights and expertise within Life Insurance. This episode covers the question of: What is the difference between Trauma Insurance and Health Insurance? Why do I need both?

If you’re considering how to best protect your financial future, you might be wondering why you may need Trauma Insurance if you already have Private Health insurance. Read on to find out why you may need both.

While both types of insurance can be very valuable if you become seriously ill or injured, they are designed to help you in very different ways.

Health insurance

When you have Private Health insurance, the health insurer helps to cover the cost of medical treatment by paying the service provider (such as a doctor or hospital) directly.

Unlike the public system, you most likely will be able to choose your own doctor, surgeon and hospital, and you likely won’t have to wait as long to be treated. You can also access ‘extras’ cover which would help pay for things like physiotherapy, optical services and dental treatments which may not be covered by Medicare.

In other words, Private Health insurance is designed to help take care of your immediate health needs only.

Trauma Insurance

With Trauma Insurance, you receive a lump sum payment paid directly to you on confirmation of the diagnosis of one of the 38 listed medical conditions in NobleOak’s PDS, including cancer excluding specified early stage cancers, heart attack (myocardial infarction) with evidence of severe heart muscle damage, stroke in the brain resulting in the specified permanent impairment and coronary bypass surgery.  These four medical conditions generally account for over 90% of all the Trauma claims which have been paid to date across the Life Insurance industry in Australia.

In the event of a claim, your Trauma cover will pay a lump sum which can be used to cover any significant out-of-pocket medical costs such as robotic surgery or other treatments which fall outside the scope of the Health Funds. In addition, mortgage or rent payments, ongoing household bills, children’s education expenses as well as other ongoing day-to-day living expenses can be covered using the funds from a Trauma claim.

Trauma Insurance could ease the financial burden for you and your family in the event of one of the listed medical conditions occurring, and enables you to focus on your recovery.

NobleOak’s Trauma Insurance provides cover for up to $2 million which is the maximum in the market.  It can be combined with your Life Insurance (and treated as an advance in the event of a claim), or purchased as a standalone product.

If you would like to know more about Trauma Insurance, please refer to the Trauma Insurance section of NobleOak’s website, or other websites, such as ASIC’s MoneySmart site.