Frequently Asked Questions

What’s covered by trauma insurance?

Trauma insurance pays out when you are diagnosed with a specified critical illness or injury. Each insurer has a slightly different list of conditions covered, which is why it’s important to compare. The three most common illnesses related to trauma claims are cancer, heart attack and stroke.

What’s not covered?

Trauma policies now cover a wider range of conditions than in the past, but those not included depends on your policy. Trauma insurance also does not provide general cover for any traumatic experience.

Why should I buy trauma insurance?

In the event of a critical illness, you may not be able to work like you used to, you may require care, and medical bills can really add up. Financial support can give you time, security and choice. Instead of worrying about finances, you can focus on what’s really important – your recovery.

How much cover should I take out?

When you take out trauma insurance, you opt for how much cover you require – usually anywhere from $50,000 to $2,000,000. Factors to consider include budget, level of debt, amount of savings, living costs if you were no longer able to work, and level of existing health insurance or income protection.

Am I covered as soon as I take out trauma insurance?

Waiting periods often apply when first buying trauma insurance, meaning you may have to wait until you are able to claim. The amount of time depends on your policy, and the condition you are claiming for.

How much does trauma insurance cost?

Cost of trauma insurance depends on your amount of cover, and choice of policy. Premiums can also vary widely across different providers, which is one reason why it’s important to compare. Options such as buy-backs and accelerated vs. stand-alone cover also impact your premiums.

What sort of questions will I be asked when applying?

Each provider has slightly different application forms, but you will generally be asked about your age, occupation, lifestyle (such as any high risk sports and if you’re a smoker), medical history, and family medical history.

What’s accelerated cover?

When taking out trauma insurance, you will choose between ‘accelerated’ and ‘stand alone’ cover. An accelerated benefit is related to your life insurance – with any payment coming off the total sum of your life insurance, but can be a more affordable option. A stand alone benefit can give more certainty over existing life insurance, since it doesn’t reduce any other benefits if you make a claim.

What’s a buy-back option?

With most trauma insurance, you have a buy-back option to add to your premium. Without it, once you have used your trauma cover it is gone. The buy back rate is usually minimal, but in some cases can allow you to claim up to five times.