MetLife is urging advisers to reconsider the role of trauma insurance, saying many Australians remain financially exposed to the impact of serious illness.
Research commissioned by the insurer found half of working Australians do not have three months’ salary saved, while 41% are living payday-to-payday – underscoring the financial strain that can follow events such as cancer, stroke, or heart attack.
MetLife Australia Chief Insurance Officer Meray El-Khoury said trauma cover can provide clients with immediate financial flexibility through a lump-sum payment, helping cover medical gaps, mortgage repayments, rehabilitation costs and caregiving needs.
El-Khoury said: “For many people, the real financial strain begins after diagnosis. Time away from work, travel for treatment, rehabilitation and everyday bills don’t stop just because you’re unwell.”
Unlike income protection, trauma insurance is not linked to time off work or return-to-work timelines, allowing clients greater discretion over how funds are used following diagnosis.
El-Khoury said trauma cover remains under-considered partly because it is generally not available through superannuation and requires an active advice conversation with clients.
“Even with Medicare and private health insurance, many people still face out‑of‑pocket medical costs, reduced income and ongoing household expenses,” she said.
