Compare Trauma Insurance

When taking out trauma insurance, you may want to take out a level of cover that makes up for any income lost while you rest and recoup. To estimate the amount you want to be insured for, consider how you’d pay for the following without your regular income:

• Mortgage repayments
• Credit card debt
• School fees
• Medical expenses
• Household bills.

You might want to look into whether you’re already eligible for any payouts from a life insurance policy should you experience an illness or injury. These could be made via an insurance company.

You can also try our free life insurance calculator to get an idea of the right level of cover for you. If you’re still not sure if a trauma insurance policy is right for you, you might want to speak to a financial adviser.

Your costs will depend on several factors. Your smoker status, family medical history, age and gender all contribute to the premium you pay for trauma cover. The amount you pay will also depend on the premium structure that you choose. The two options are:

• Variable Aged Stepped (previously known as Stepped premiums) increase year-on-year as you age. These are usually cheaper to start out with but could end up costing you more over your lifetime in the long-term.
• Variable premiums (previously known as Level premiums). These are typically more expensive to start, as the cost is averaged over a period of time. Overtime, variable premiums may be cheaper than variable aged stepped premiums. Neither premium structures are guaranteed to remain the same, and may change if the insured sum changes, by either indexation or general increase in pricing that may occur from time to time. Changes in government charges like stamp duty could also lead to an increase in your premiums. For any changes to your insured sum, your premium increase will be based on your age when the increase occurs.

The definition of a trauma event will vary between insurers and the policy you choose. However, here are some injuries and medical conditions that you can typically make an insurance claim for:

• Cancer
• Heart attacks
• Organ failure
• Severe burns
• Major head trauma
• Loss of a limb.

To understand exactly what you’re covered for, as well as any exclusions or restrictions, refer to the relevant Product Disclosure Statement (PDS).

Most Australians within the insurers qualifying age bracket, can purchase a trauma insurance policy, with a few exceptions and exclusions. For example, if you have a pre-existing condition at the time of taking out a trauma insurance policy, you may have trouble getting covered for related trauma, depending on the condition.