Review Trauma Insurance Australia

Trauma insurance can provide a lump sum payment if you suffer from a serious medical event, such as a heart attack, cancer or stroke. You can generally use this benefit to help cover the costs of your treatment and recovery, as well as any other costs that may arise due to your illness.

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Or call us on:

1300 135 205

Benefits of Trauma Insurance

  • Provides a lump sum benefit if you are diagnosed with one of the critical illnesses defined in the insurer’s PDS.
  • Premiums from as little as $48.02 per month**. 
  • Worldwide cover, 24/7 Cover.
  • You can apply if you are aged between 15 and 63 years old.
  • Combine Trauma cover with Life Insurance and save on premiums. 

What is Trauma Insurance?

Trauma insurance is a type of life insurance policy that provides you with a benefit. Generally, you’ll be able to use the paymentfor financial support if diagnosed with a critical illness, as defined by your insurer in your Product Disclosure Statement (PDS). You can use the benefit to help pay medical expenses, cover any loss of income and provide for your family while you recover.

Advantages and Disadvantages of Trauma

You can generally use the funds received from a trauma insurance policy to pay your medical bills. However, you’ll typically also be able to use it to reduce your mortgage and financially support you and your family while you recover. In certain cases, you might also need the payment for medical costs, covering you or your partner’s salary while recovering, rehabilitation costs, and other unexpected expenses. 

However, it’s important to consider the drawbacks of this type of life insurance cover. Generally, the main disadvantage of trauma insurance is that it only covers specific conditions defined in your PDS. Chronic pain, mental health conditions or sports or pastimes injuries  may mean that you’re unable to work, but they’re not commonly covered under a critical illness policy.

Pros

  • Trauma cover typically pays out a lump sum payment.
  • Generally covers up to 60 critical illnesses. However, the covered conditions vary depending on your policy type and the insurance company.
  • You typically have the option to combine or link  this type of cover with other policies like life insurance, TPD insurance.
  • When you buy trauma insurance, you generally have the option to choose between several policy options.
  • You can use the benefits of this type of cover to cover the costs of your recovery.
  • The  payment you receive from this type of life cover is typically tax-free.

Cons

  • To receive your claim, you typically need to meet the definitions of critical illness outlined in your policy documents.
  • Generally, all critical illness policies have a 90-day waiting (qualifying) period.
  • Before you qualify to receive your benefit, you’ll typically need to survive for at least 14 days from the date of diagnosis.
  • Cover can be expensive if you opt for a stand-alone policy.
  • Typically won’t be available through your superannuation.

How Does Trauma Insurance Work

Trauma insurance is a type of life insurance that pays out a benefit if you’re diagnosed with a specified critical illness or condition. Before taking out a policy, there are several key things you need to be aware of:

Getting a Trauma Insurance Quote

To ensure you choose the best critical illness cover for you, it’s generally a good idea to compare a variety of providers’ quotes and features side by side with the help of a specialist. Fill in the quote form below, or give us a call on 1300 135 205 and a specialist will get back to you.

What Critical Illness Covers

Trauma Insurance typically covers up to 60 critical conditions to provide financial support to the insured, should they suffer from a condition listed. In general, 80% of claims are for heart disease, cancer, heart attacks, and stroke. The number of illnesses you are covered for depends on your choice of insurer and policy type; Standard vs. Plus.

Trauma Insurance Policy Structures

When you purchase trauma cover, you generally have the option to choose between three differrent policy structures. Each has it’s own benefits so it may be a good idea to compare your options before making a decision.

We make it easy for you to compare policies online with our powerful comparison engine.

Buy with confidence today for peace of mind tomorrow.

What affects my insurance premiums?

Generally, your trauma insurance cost is determined by several different factors. This includes the type of policy you choose, whether your premiums are stepped or level, and your age and gender. The following are factors that’ll typically impact the cost of your cover.

Policy Type

Depending on the insurer you’ve chosen, you’ll generally have a choice between Standard or Plus policies. Standard policies usually cover 30 to 44 core critical illnesses, while the Plus option typically includes an additional 10 to 15 less critical conditions. Typically, there is no significant price difference between the two; however, there is a big difference in the number of conditions you may be covered for.

Standard

Standard policies cover 30 – 43 major critical illnesses, including cancer, heart, neurological and permanent conditions, organ and blood disorders, intensive care and other events.

  • Alzheimer’s disease
  • Angioplasty
  • Aplastic Anaemia
  • Benign Tumour of the Brain or Spinal Cord
  • Blindness
  • Cancer
  • Cardiac arrest
  • Cardiomyopathy
  • Chronic Kidney Failure
  • Chronic Liver Disease
  • Coma
  • Coronary Artery Bypass Surgery
  • Deafness
  • Dementia
  • Diplegia
  • Encephalitis
  • Heart Attack
  • Heart Valve Surgery
  • Hemiplegia
  • Loss of Independence
  • Loss of Limbs or Sight
  • Loss of Speech
  • Major Head Trauma
  • Major Organ Transplant
  • Medical condition requiring life support
  • Medically Acquired HIV
  • Motor Neurone Disease
  • Multiple Sclerosis
  • Muscular Dystrophy
  • Occupationally Acquired HIV
  • Paraplegia
  • Parkinson’s Disease
  • Pneumonectomy
  • Primary Pulmonary Hypertension
  • Quadriplegia
  • Severe Burns
  • Stroke
  • Surgery of the aorta
  • Triple Vessel Coronary Artery Angioplasty

Plus

Plus Policies cover an additional 10-20 more minor conditions, including loss of hearing or sight, early-stage cancer, diabetes, Crohn’s disease, partial Alzheimer’s disease and more. For these conditions, you will typically receive a partial payment. Because Plus Policies offer cover for additional illnesses, they are generally more expensive.

Your sum insured

How much cover you need typically depends on your personal requirements. This includes the amount of money you would require to help pay for medical treatments and ongoing household expenses and help reduce any debts to focus on your recovery. You will also need to consider the amount of cover you can afford. Generally, the higher your sum insured, the more expensive your premiums will be.

Your premium structure: Level premiums vs. Stepped premiums

Typically, two types of premium structures are available to you when buying critical illness insurance. Stepped premiums tend to start lower; however, they will increase each year as you age. Level premiums start higher; however, they do not increase due to a change in your age as they work off your policy entry age. In general, level premiums are more affordable in the long term.

The insurer selected and their rates/premiums for the policy

Generally, each life insurance company determines the cost of their premiums. Insurers typically add policy fees in addition to your base premium rate and any relevant stamp duties and loadings. Compare policies from several insurers to find a premium that suits your requirements.

Your Age and Gender

Generally, you will be assessed according to your age and gender when applying for trauma cover. Typically, women pay more for life cover than men, and your premiums are more expensive the older you get. Therefore, applying for cover sooner rather than later is a good idea to avoid paying a higher premium.

Smoking status

Typically, people who smoke may pay 50-100% more for their life insurance premiums compared to non-smokers. This is because smoking is associated with various health risks, such as cancer and heart disease. If you’re a smoker, it’s important to disclose this when applying for cover so that you can be correctly assessed.

Health status

Your health plays a significant role in the cost of your life insurance. If you have any pre-existing medical conditions, it’s important to disclose this when you apply for cover. This is because your insurer will use this information to assess your risk. Generally, the higher the risk, the higher the premium.

Additional policy options selected

In most cases, these additional benefits vary between insurers. However, there are usually a few unique built-in benefits that you can find on critical illness policies. Examples of unique benefits include accidental injury benefits or child cover.

Compare Trauma Insurance Policies

PolicyPremium estimates

Insurance
Critical Illness stand-alone insurance (Plus)
$35.57
TAL
Accelerated Protection
Critical Illness – Insurance Health Sense (Standard)
$45.39
NEOS
Protection
Critical Illness Insurance Preferred (Standard)
$46.90

Wealth Protection
Trauma Cover (Standard)
$48.33

Protect
Trauma Cover (Standard)
$50.66
OnePath
OneCare
Trauma Cover (Premier)
$51.21

Clear Choice
Trauma Standard (Standard)
$54.26

Priority Protection
Crisis Recovery Stand Alone Benefit (Standard)
$73.21

Source: Life Insurance Direct Comparison Engine (July 2022; Premium estimates for $300,000 worth of trauma insurance with stepped premiums for a 30-year-old non-smoking male who lives in NSW)

How to Claim Trauma Insurance

Whichever policy type and insurer you choose will clearly state which illnesses are covered and how severe it needs to be for them to pay out. For your claim to be processed quickly, ensure you provide the insurer with all the requirements. To know those requirements, speak to our specialists or relevant insurer to help you through the process.

Some policies will pay you the full insurer amount on diagnosis of a critical illness; others pay out a percentage of the amount, depending on the severity of your illness. You must read the Policy Disclosure Statement (PDS) and speak to a professional before making your decision.

Will I have enough savings if I can’t work?

No one knows what the future holds, but your savings could quickly disappear if you’re diagnosed with a critical illness or injured in an accident. Trauma insurance can give you peace of mind, knowing that you will financially care for yourself and your family if something happens to you. Generally, a good rule of thumb is to apply for enough coverage to help you maintain your current financial situation should you be unable to work.

We make it easy for you to compare policies online with our powerful comparison engine.

Buy with confidence today for peace of mind tomorrow.

Which company has the best trauma insurance in Australia?

Typically, there is no one best insurance company in Australia. The best life insurance company is typically the one that best suits your requirements. It’s usually a good idea to speak with a financial adviser or fill in the quote form below, and a life insurance specialist will contact you to help assess your needs.

Frequently asked questions and Answers

  • What is covered under a trauma insurance policy?

    Trauma insurance can cover you for over 50 different medical conditions, including cancer, heart attack and stroke. The full list of conditions covered varies between insurers, so it’s important to check with your insurer before selecting a policy.
  • What is the difference between trauma insurance and income protection?

    Trauma insurance pays a lump sum if you’re diagnosed with a serious medical condition. In contrast, income protection pays a monthly benefit if you cannot work due to illness or injury.
  • Can I claim trauma insurance on tax?

    No, generally, trauma insurance premiums are typically not tax-deductible. However, the payout you receive is not typically taxed, and you’ll be able to use it as you see fit.Who needs trauma cover? Financial protection against critical illnesses is vital to any person, especially as your financial responsibilities increase and you get older. As you age, the probability of suffering a critical illness increases. The older you get, the higher your premium becomes because your risk of developing a critical illness increases yearly. If you have a mortgage, people are dependent on your monthly salary or need to repay debts and medical expenses while you recover. You may need Critical illness cover to help you.
  • How is Trauma Insurance different from TPD and Income Protection?

    Trauma insurance pays out a lump sum when diagnosed with a critical illness, as defined by your insurer. On the other hand, total and Permanent Disability (TPD) insurance pays out a lump sum in the event of your total and permanent incapacity. Income Protection covers up to 75% of your income and pays a monthly benefit should you be unable to work due to illness or injury.

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