Three Easy Steps
Complete an online quote form or contact us, (make sure you complete the additional information box if you have a special policy you want to compare).
You get a detailed report of premiums rates and benefits.
Like the advice and trauma premium rates? Then apply online with one of our representatives or we will forward you the documentation for you to complete.
Your choice!
Remember we have over 20 years experience organising client’s Trauma Insurance! See our client testimonials for real life stories.
What is Trauma Insurance? – or Critical Illness Insurance
Trauma Insurance has many names in the Australia Life Insurance market. It’s also commonly known as:
- Critical Illness insurance
- Recovery money insurance
- Trauma Cover
Essentially the reason this exists is Australian insurers want to differentiate themselves from their competitors trying to present what they are offering as a superior trauma insurance product. However in our comparisons of the various features and benefits offered we have found slight differences. These are the definitions of the conditions and diseases, and the types of ‘extra benefits’ you can choose from.
These extra trauma benefits cover more conditions and diseases – up to 44, rather than just the basic ones – most basic Trauma Insurance policies have seven of the main trauma conditions.
Trauma Insurance started in 1986 from the personal insurance range, and aims to provide people a cash lump sum should they fall seriously ill and survive the trauma event.
This is unlike life insurance were you must die before a claim can be made.
The insurance industry found that you could be diagnosed with cancer and/or a heart attack (some of the trauma conditions) but your normal personal insurance range would not provide any benefits.
Income protection insurance won’t pay until you have stopped working or met the income protection definition. But with some cancers you can still work initially until your treatment kicks in. Then Income Protection Insurance will pay. But that could be months away!
Total and Permanent Disability Insurance won’t initially pay here either, as you need to be totally disabled.
The solution to remove this gap is Trauma Insurance, which pays out a cash lump sum on the diagnosis to provide you full financial protection!
Is there a qualifying period for certain Trauma Insurance benefits?
Most quality Trauma Insurance products include a minimum waiting period of 3 months and/or 90 days before you are fully insured for certain conditions. These are as follows:
- Aorta repair
- Cancer (can be up to 6 months wait with some companies)
- Open heart surgery
- Coronary artery bypass surgery
- Heart attack
- Heart valve surgery
- Stroke
- Coronary artery angioplasty
- Triple vessel angioplasty
This is not a definitive list and we recommend you check each life insurer’s product disclosure statement (PDS) before you proceed with your application. However if you are replacing an existing trauma policy were you have waited the full 3 months the qualifying period on the new policy may be waived.
Is there any immediate protection with Trauma Insurance?
Yes, for “accidental” types of trauma you are covered immediately.
Essentially trauma cover provides a cash lump sum on the diagnosis of a medical condition. This is what’s known in the insurance industry as a defined benefit contract.
So you if you are unfortunate enough to be diagnosed with one of the following conditions you will receive a cash lump sum benefit.
Why do we recommend Trauma Insurance?
Should you be diagnosed with a trauma it makes good sense that you concentrate all your efforts on getting well. The last thing you want to be worrying about is your financial health!
How much Trauma Insurance do I need?
To make sure when calculating how much Trauma Insurance you need we suggest you include a cash lump sum to:
- Extinguish debts, home mortgage, car leases, personal loans.
- Avoid financial ruin whilst you are recovering – pay your living expenses.
- Pay for specialist medical advice and treatment.
- Get immediate medical attention – no waiting lists!
- Allow a cash lump sum to make any modifications to the home.
If you are in business:
- Extinguish debts, business loans, debentures, line of credit, car leases etc.
- Avoid loss of profits whilst you are in recovery.
- Cover any key income producing employees – loss of profits.
Can I also include Life Insurance with my Trauma Insurance policy?
Yes! This is in fact a great way of reducing your Trauma Insurance premiums and buying the cheapest Trauma Insurance in Australia! In fact if you don’t buy Life Insurance with your trauma policy the Australian government will charge you extra stamp duty on your Trauma Insurance policy!
In fact we have found in most cases the added Life Insurance premium is nearly the same as the stamp duty charge so it really makes sense to include Life Insurance.
So how does it all work?
Well, should you suffer a trauma you will receive a cash lump sum – your trauma benefit.
If you have what is called buy back life insurance as part of your policy and you survive the trauma event for 12 months and pass away for whatever reason after that the life insurance company will pay your estate another cash lump sum.
Alternatively should you die first then only one payment will be made.
What’s new for Trauma Insurance?
MLC Life Insurance has recently introduced a new Trauma Insurance feature called “Best Doctors”. This is currently exclusive to MLC Trauma Insurance. Essentially this provides the insured family access to advice by leading specialists at no extra cost!
How much does Trauma Insurance cost?
The cost of Trauma Insurance will vary on a number of factors as follows:
- Age
- Smoking status
- Gender
- Health
However, if you have a pre-existing condition or, if two or more of your immediate family members have been diagnosed with a trauma the Life Insurance company will likely increase your premium. This is commonly referred to as a loading.
If you are unfortunate enough to attract a loading we can periodically review your policy with the view of removing the loading. Most insurers these days will remove a loading if your health has improved.
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Do I Need A Trauma Insurance Broker
Buying Trauma Insurance Online
See our latest life insurance articles
Want to compare or find Trauma Insurance policies in Australia, even discontinued policies? Then you have found the right web site!
Complete an online quote form or contact us, (make sure you complete the additional information box if you have a special policy you want to compare).
You get a detailed report of premiums rates and benefits.
Like the advice and trauma premium rates? Then apply online with one of our representatives or we will forward you the documentation for you to complete.
