Trauma insurance is designed to bridge the potential benefit gap between income protection, health insurance, and total and permanent disablement (TPD) and death insurance. It came into being as people were surviving previously life-threatening illnesses (such as cancer, heart attack and stroke), but as a result were being financially disadvantaged through being off work due to poor health or because of essential lifestyle changes.

At a minimum, it is suggested you consider insuring for a lump sum sufficient to at least meet the costs for possible lifestyle changes including modifications to your house or motor vehicle, and long-term treatment that may not be covered by your private health insurance. Ideally you might like to consider providing your family with a lump sum for any debt repayment and any financial planning shortfalls for both pre and post-retirement goals. Talk to a financial adviser to ensure you are full covered.