Trauma Insurance

What is Trauma Insurance?

Trauma Insurance, often referred to as Critical Illness Insurance, will provide you with a lump sum payment in the event that you suffer a major trauma or critical illness such as Cancer, Heart Attack or Stroke.

Why take out Trauma Insurance?

Trauma insurance serves to help you and your loved ones with the unexpected expenses that may arise should you suffer a major trauma or critical illness. The lump sum payment you receive may be useful in assisting with unforseen medical expenses, providing for the services of a carer or making any other necessary adjustments to your lifestyle. Further to this, the benefit received may enable your spouse or family member the opportunity to take time away from their work to assist in supporting and caring for you.



What does Trauma Insurance cover?


Trauma Insurance covers a specified list of trauma events and critical illnesses, as stipulated by each insurer. Common conditions that are covered include:

·         Heart conditions

·         Cancer

·         Nervous system conditions (e.g. stroke, multiple sclerosis, paralysis, Parkinson’s disease)

·         Organ disorders (e.g. chronic kidney failure, chronic lung disease, chronic liver disease, severe rheumatoid arthritis)

·         Permanent loss of limbs

·         Blood conditions (e.g. occupationally acquired HIV or hepatitis B or C)


Age restrictions


The entry ages for Trauma Insurance slightly vary between insurers, usually ranging between 15 and 65 years.


Policy expiry

That maximum expiry age across insurers for Trauma cover is age 99, providing that the cover is linked with Life cover and you continue to pay your premiums.


Generally at age 70, the Trauma cover definition will change so that the benefit amount is only payable if you suffer a loss of independent existence, loss of limbs or sight or cognitive loss.


Amount of cover

The minimum amount that can be applied for is $50,000.


The maximum amount that can be applied for is $2,000,000.

Available ownership structures


A Trauma insurance policy cannot be superannuation owned.


Any other ownership structure is accepted.

Who receives the benefit?

In the event that a claim is made, the lump sum benefit will be paid directly to the policy owner.

Common built in benefits

Life cover buyback – This benefit will apply if your Trauma cover is linked to Life cover. Often, the life cover component will be reduced by the amount that was claimed through trauma. This feature allows for the reinstatement of your Life cover (usually after 12 months), without having to supply further medical evidence.


Death benefit – If the life insured dies and no Trauma benefit has ever been paid under this policy, a lump sum payment of a specified amount will be paid accordingly. This amount varies between insurers.


Financial planning benefit – If a claim is made and the sum insured is paid in full, you will be reimbursed for the costs of professional financial advice up to a specified maximum. This maximum varies between insurers.


Indexation benefit – Your sum insured will increase each year at the rate of inflation.



“Plus” benefits available at an extra cost

Accelerated life cover buyback – When trauma cover is linked to life cover and the full trauma benefit is paid, exercising this option will reinstate the amount of life cover that would have been reduced. This option will also waive future premiums for the portion of life cover that has been reinstated up until a specified age.


Cover for additional trauma conditions – A percentage of the full Trauma benefit may be paid following diagnosis of:

Carcinoma in situ

Early stage cancers

Diabetes complications

Partial loss of hearing or sight

Severe osteoporosis


Trauma reinstatement option – This benefit allows you to reinstate your Trauma cover for the benefit amount that is paid to you in the event of a full or partial claim, without having to provide further medical evidence. The reinstated cover will be subject to any limitations or exclusions that were applied to the original Trauma policy.


Making a claim

In the event that a claim is made on your Trauma policy, we will handle the entire process and ensure that it is as simple and efficient as possible.

Find out more about trauma insurance claims here.


General Advice Disclaimer

General advice warning: The advice provided is general advice only and in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.