Trauma Insurance is a personal insurance policy which pays a lump sum benefit upon the diagnosis of a critical illness that is specified in your Product Disclosure Statement. Trauma cover typically covers up to 60 trauma conditions including heart attack, cancer and stroke.
Also known as Critical Illness Insurance or Dread Disease Cover, it can help pay for your medical expenses as well as other costs.
- What are the benefits of trauma insurance?
- What policy types are available?
- Trauma Insurance Options
- What do I need to know?
- How much cover can I apply for?
- What affects my trauma insurance premium?
What are the benefits of trauma insurance?
There are a number of benefits of trauma insurance:
- Pays a lump sum benefit if you are diagnosed with a critical illness
- Lump sum benefits can used as you see fit. It can help pay for:
- Medical expenses
- Mortgage or rent payments
- Other debts you have
- Provide an income if you are unable to work while you recover from your critical illness
- Provide an income to your partner or spouse if they take time off work to care for you
What policy types are available?
The life insurers we work with generally offer two types of trauma insurance policies:
Standard Trauma Policies
Standard trauma policies offer:
- Cheaper or more affordable coverage than Plus Trauma Policies
- Covers up 30 – 44 core trauma conditions however it is not as comprehensive as a Plus Trauma Policy.
Plus Trauma Policies
Plus Trauma Policies offer:
- Coverage across 30 – 44 core trauma conditions; plus
- Coverage across 10 – 15 additional lesser critical illnesses
- Partial payment for lesser critical illnesses
- More comprehensive cover at a slightly higher premium due to the higher level of cover.
Deciding on which policy type to take out with your trauma policy will come down to a number of factors. If you are after more affordable coverage across the core trauma conditions, a Standard Policy will generally be worth exploring.
However, if you are after more comprehensive cover and are prepared to spend a little bit extra to provide more cover, a Plus Trauma policy may be the best cover type for you.
It is always important to read through the PDS and speak to your consultant before deciding on which trauma policy type is best for you.
|Benign brain tumour||Multiple sclerosis||Burns of limited extent|
|Benign tumour of the spine||Muscular dystrophy||Critical care|
|Cancer||Severe rheumatoid arthritis||Absence of hand or foot|
|Medically acquired HIV||Congenital blindness|
|Coronary artery by-pass surgery||Occupationally acquired HIV||Congenital deafness|
|Heart attack||Chronic kidney failure||Developmental dysplasia of the hip|
|Heart valve surgery||Chronic liver disease||Down’s Syndrome|
|Open heart surgery||Chronic lung disease||Disseminated intravascular coagulation|
|Cardiac arrest||Major organ transplant||Eclampsia|
|Triple vessel angioplasty||Systemic sclerosis||Hydatidiform mole|
|Alzheimer’s disease||Coma||Infant death|
|Brain damage||Intensive care||Infantile|
|Cognitive loss||Loss of speech||Tetralogy of fallot|
|Dementia||Severe burns||Transposition of great vessels|
|Parkinson’s disease||Severe diabetes||Systematic lupus
erythematosus (SLE) with lupus nephritis
|Major head trauma||Terminal illness||Trache-oesophageal fistula|
|Stroke||Diagnosed benign tumor||Angioplasty|
|Encephalitis||Angioplasty||Minor heart attack|
|Meningitis and/or meningococcal disease||Minor heart attack||Hydrocephalus
Colostomy and/or ileostomy
Colostomy and/or ileostomy
|Deafness||Severe endometriosis||Adult insulin dependent diabetes mellitus*|
|Loss or paralysis of limb||Adult insulin dependent diabetes mellitus*||Esophageal Artesia|
|Motor neurone disease||Severe burns||Spinal bifida|
|Aplastic anaemia||Severe diabetes||myelomeningocele|
|Cleft lip and/or palate||Terminal illness||Stillbirth|
|Diagnosed benign tumor||hydrocephalus||Neonatal death|
Plus Trauma Policies:
Plus Trauma Policies generally offer the same cover as a Standard policy but generally provide cover for up to 15 additional lesser critical illnesses:
|Diabetes Complication||Carcinoma in situ of the Cervix Uteri|
|Carcinoma in situ of the Vulva or Perineum of limited extent||Carcinoma in situ of the vagina|
|Chronic Lymphocytic Leukaemia||Hydatiform Mole|
|Partial Loss of Hearing||Severe Osteoporosis|
It is important to note that in order to receive a benefit, you will need to meet or exceed the definition of the critical illness that is provided in the PDS. Insurance companies may differ on the exact definition and it is always important to consult the PDS.
Trauma Insurance Options
To further enhance and customise your policy, insurers generally offer a number of policy options for you to choose from.
While including these options in your policy may cost more, they can add further protection to you and your family.
Policy options include:
What else do I need to know about trauma insurance?
Before taking a trauma insurance policy, there are a number of key things you need to be aware of. Make sure you speak to your consultant about the below.
- You will generally need to survive for at least 14 days from the date of diagnosis before you are eligible to receive your trauma benefit.
- If death occurs within 14 days, you will not be eligible for a trauma benefit but will be eligible for a life insurance benefit if you have life cover.
- There is generally a 90 day waiting period at the start of your trauma policy before you are eligible to receive a trauma insurance benefit.
How much cover can I apply for?
How much cover you require is up to you. Make sure you talk through with your adviser about the level of cover you feel you need and the level of cover you feel you can afford. Your adviser can talk you through the range of options available to you and how you can make your policy as affordable as possible to meet your needs.
Generally, the maximum level of cover available will be up to $2 million, depending on your insurer.
What affects my trauma insurance premiums?
Your trauma insurance premium will be affected by:
- The policy type you choose
- Your sum insured
- Your premium structure
- The base premium rate charged by your insurer
- Smoking status
- Health status
- Additional policy options selected
If you would like more information on trauma cover, the critical illnesses covered, the built-in benefits and the additional cost policy options, please call us on 1300 882 762.