Don’t let critical illness lead to your financial ruin
What is Trauma Insurance?
Trauma Insurance is a policy that pays you a lump-sum amount if you are diagnosed with an insured critical condition like heart-attack, cancer, major kidney failure etc. Trauma Insurance is also called Critical Illness Insurance or Dread Disease Cover (as it was called by the famous heart surgeons Professor Chris Barnard and Dr Marius Barnard, who performed the first heart transplant, from South Africa. Dr Barnard created the first dread disease cover in 1983, to cover the diagnosis of severe illnesses because of the high medical and surgical costs involved in traumatic events.
Generally, there are two types of Trauma policies: Standard and Plus. The thing to understand is, that different insurers have a different list of what they cover and the severity. The lists below are for general purpose only. If you have specific queries, we are more than happy to help you with them.
Generally Standard Trauma Insurance policies in Australia cover the following:
Generally Trauma Plus Insurance policies in Australia cover the following:
Exact Definitions: It is crucial to note that besides a general list, there are highly specific medical definitions given in the Product Disclosure Statements of insurers.
Severity: It is also important to understand that specific illnesses receive full benefit payouts and partial illness receives a percentage of the benefit.
Trauma Plus Policies: The ailments that are considered a part of a standard Trauma policy by one insurer may be listed as Trauma Plus by another.
The best way to find out what an insurer covers is to read the Product Disclosure Statement. Alternatively, we can discuss your Trauma Insurance policy options and help you make a suitable choice.
Why Trauma Insurance?
As you know serious illnesses and death do not discriminate between class, colour, age or gender and thus it is crucial that everyone considers Trauma Insurance. Of course, nobody really wants serious health problems, but unfortunately, bad health does happen. Trauma Insurance covers you for life’s nasty surprises. What’s more, you can usually bundle it with your Life Insurance in order to save costs.
Options when setting up your Trauma Insurance Policy
In Australia, if you bundle Trauma Insurance under your life insurance as either an auxiliary or a rider benefit, then you get both the benefits under one policy. This bundled policy reduces your premium payments considerably rather than having them as separate, stand-alone policies.
You can bundle the policies by talking to us.
Things you need to know
- In case of trauma, there is a survival period of 14 days. This means that you need to survive a traumatic event for 14 days to become eligible.
- If you have a stand-alone trauma policy and if you death occurred in the first 14 days from you succumbing to the traumatic event then you will not be eligible to receive the benefit. However, if your trauma policy was bundled along with a Life insurance policy then you would receive only your life insurance benefit.
- Different insurance companies have different guidelines on what is covered in their Product Disclosure Statements or PDS.
- Generally all trauma policies have a waiting period of 90 days.
Comparing Trauma Insurance Quotes
Apart from these, quotes also vary depending on your individual situation like your age, whether you are a smoker or not, and gender. This is not gender bias but because there is a gender difference in health conditions and thus the difference.
The premium you pay depends also on the type of policy you choose, namely:
- Standard Policy or Plus Policy
- The expiry age of the policy
- The definition of the policy and the conversion of definition when you reach a certain age
- Sum insured
- Difference in Premiums: Stepped premiums that increase with age or Level premiums that generally remain the same unless there is a change, for example, an increase in cover.
Trauma insurance quotes & advice on trauma cover
At Life Insurance Direct, we are in a very good position to inform you of different options and are happy to answer any questions on which trauma policy to purchase, which ones suit you, how to bundle policies to pay less premiums etc.
Remember no question is too big or too small and all your questions will be answered. Our services are free. Call now. Don’t risk a financial ruin brought about by a critical illness.