What is Trauma Insurance?
Trauma cover is a type of life insurance that provides you with a lump sum if you suffer from a serious illness or injury. Unlike term life cover, it pays out directly to you while you are still alive, so you can focus on getting better without worrying about money.
What types of trauma insurance are there?
Standard or Basic: This is a cheaper type of policy because it covers around 30-40 conditions that people are generally more likely to experience, like a heart attack or stroke.
Comprehensive: Includes less common conditions such as melanoma or osteoporosis. This type of trauma cover is good for people who are at higher risk for certain genetic conditions.
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Before he came to us, Frank was paying for three separate insurance policies that were costing him over $10,000 a year. He was frustrated and disappointed with his insurers but didn’t know where to start.
With the help from one of our Senior Advisers he was able to amalgamate his policies into one comprehensive plan. With a new yearly premium of $6,000, and an insurer that has paid out over $2 billion in claims to Australians over the past two years Frank’s family was better protected and he was paying less.
Frank has since returned to us and we’re helping him with his Income Protection claim. As he recovers from knee surgery this money will help him support his family while he’s unable to work.
After years of paying premiums to the same insurer Maggie found herself in trouble when they suddenly refused to renew her policy. Due to a change in her health and her finances, she was told that no insurers would protect her. That’s when she came to us.
Our advisers were not only able to get Maggie the peace of mind that an underwritten life insurance policy brings; they also helped her save a few thousand dollars on her yearly premium. She was even able to save on her out of pocket expenses by opting to fund the new premium through her SMSF (self-managed super fund).
Maggie is now in the process of upping her cover to include a Trauma Insurance benefit with the help of one of our Senior Advisers.
With our help she’s making the journey from uninsurable to fully protected.
The level of trauma cover you will need depends on your situation. Trauma insurance is designed to cover short-term expenses, like medical costs associated with treatment and recovery. Here are a few things to consider when determining your cover:
Other insurance policies you have, such as income protection, that could assist your family if you were unable to work due to an illness or injury.
Financial needs that will still need to be met if you are unable to earn an income while injured.
Benefits like sick leave or worker’s comp that could help alleviate your expenses.
Trauma insurance gives people the funds they need to take care of sudden expenses that arise from an unexpected illness or injury. If you are diagnosed with a condition covered by your policy, you will need to file a claim with your insurer. Once the claim is successfully processed, a lump sum will be deposited into your account. This money is then used for things like medical treatment or equipment, home modifications, or even to pay off debts.
Your trauma insurance cost will depend on how much cover you want, as well as your age, gender, smoking status, and profession.
For example, a professional nonsmoking male in his 30s would pay an average of $53 a month for $250,000 worth of cover. In his 40s, he would pay an average of $132 for the same amount of cover.
The best trauma insurance fits into your budget and meets your financial needs. Different policies may suit different people, depending on your priorities. Here are a few benefits that may appeal to you when shopping around for trauma cover:
Worldwide cover so you can be confident you’re covered wherever you go
Partial payments if you are diagnosed with a less serious injury or illness
Purchase as a standalone policy or bundle it with other types of life cover
Reinstatement option, so your trauma cover doesn’t terminate after it is paid out
Needlestick cover for medical professionals who suffer needle injuries while at work
Policy benefits: Different policies have different ways of distributing certain benefits, such as funeral expenses or financial planning services
Compare policies with LifeInsuranceComparison.com.au today to find a low price on the best trauma cover for you.
Up to $2,000,000 in cover for over 40 medical conditions.
Free cover of up to $10,000 for each of your children in case they are diagnosed with a serious illness or injury.
Trauma booster option that lets you double the payout for partial trauma events and boost the payout for certain events by up to 25%.
Market leading heart attack definition that pays the full sum, even for minor or ‘silent’ heart attacks.
Choose from Critical Illness or Critical Illness Plus so you only pay for the level of features that suits you.
Optional Life Cover buy back when Critical Illness is purchased with life cover, where your life cover is restored by the amount of the benefit paid out.
Business safeguard option to increase your Critical Illness cover for business purposes without providing further medical evidence.
Partial benefits option for certain additional conditions listed in the product disclosure statement.
Three types of cover available (Critical Injury, Critical Illness, and Cancer): choose one or a combination of them.
Get covered for anywhere from $100,000 to $500,000
Bundle with life insurance to reduce your premiums
No medical tests required
What counts as cheap trauma insurance will depend on your personal circumstances. Nonsmokers typically pay lower premiums than smokers, and premiums increase with age.
According to recent comparisons, trauma insurance for a 35-year-old male nonsmoker can be found for as low as $18.85 per month.
You should be able to find cheap trauma cover by using these tips:
Only choose a level of cover that suits you. Being over-insured means paying higher premiums than necessary
Understand your insurance options: Income protection is great for supplementing your income on a monthly basis, but trauma insurance steps in by providing a lump sum right when you need it. Don’t expect one to do the job of the other.
You can reduce your risk by quitting smoking, which will result in lower premiums.
Compare policies with LifeInsuranceComparison.com.au to find a low price on policies, plus get free financial advice from an insurance professional.
Most Australians can think of at least one person they know who has suffered a serious injury or illness, such as a heart attack or cancer. Trauma insurance gives you peace of mind that if something like this happened to you, money wouldn’t become an extra complication.
Here are some of the benefits of trauma insurance for different age groups:
20s: Insure yourself against accidents at a time when you may have less accumulated wealth to cover unexpected expenses.
30s: Protect the family finances should you be diagnosed with an illness or suffer an injury that could put you out of commission for a while.
40s: Feel better knowing that you have a safety net in case you get seriously ill.
50s: At a time when you are moving towards retirement and your chances of suffering from health conditions increases, keep your savings untouched by securing trauma cover that can take care of sudden treatment and recovery costs.
60s: Your risk of illness goes up, and having trauma cover means your family or adult children won’t bear the burden of any medical costs that could arise.