Trauma Reinstatement

Trauma Reinstatement can be a great way for you to maintain your critical illness cover even after a claim has been paid as it allows you to re-purchase your trauma cover.

Published August 20, 2020

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How does Reinstatement work?

The reinstatement option is available in both stand alone and combined policies. If a full trauma claim is paid, you can re-purchase your trauma cover, giving you your full level of trauma cover back.

The option will need to be purchased at the time of your policy application.

When can the reinstatement option be used?

You can generally  use the reinstatement option 12 months after your trauma claim was made, however select insurers may offer this 6 months after your claim. If you do decide to use it, in most cases it will need to be used within 30 days of the anniversary of your claim.

What does Trauma Reinstatement Cover?

Reinstated trauma will provide cover for all critical illnesses covered in the policy except for the critical illness and the related category that resulted in the previous claim being made.

For e.g. if you received a pay out for prostate cancer, the reinstated cover will generally not cover you for any cancer or any related conditions as the entire category will be excluded from the reinstated cover.

Case Study

Trauma Insurance CoverPremium (monthly)
Initial Policy$500,000$79.34
Claim Paid($500,000)
Cover available 12 months post claim$0.00$79.34
Cover available 13 months after Claim$500,000$79.34

Please note that this is an example only and is not indicative of actual premiums or cover available.

Jonathan is a 40 year old software engineer who decides to take out a Trauma Insurance policy with the Reinstatement Option.

Several years after taking out his policy, Jonathan is diagnosed with cancer and is forced to take an extended break from work as he seeks treatment via chemotherapy and surgery.

As his form of cancer is covered by his policy, Jonathan receives a lump sum payout which helps cover his medical expenses, mortgage and day to day living expenses.

12 months after his claim, Jonathan decided to use his reinstatement option, providing him with his full amount of trauma cover.

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