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A major illness, such as a heart attack, stroke, or cancer can affect anyone during their lives. Keep reading to learn more about trauma insurance, including how it works, and what’s generally covered in a standard policy.
Trauma insurance, also known as ‘critical illness’ insurance or ‘recovery’ insurance, is a type of insurance policy which provides you with cover if you are diagnosed with a specified illness. Trauma insurance is paid as a single, large payment which can help you to pay for things such as:
What your trauma insurance will cover will ultimately depend on which policy you choose. Here is a list of the common types of the illnesses or events you can generally claim against1:
While everyone’s circumstances are different, there are a few basic questions you can ask yourself to help you decide if trauma insurance is suitable for you2:
When you apply for trauma insurance, you will be required to inform your chosen insurer of anything that may affect their decision to provide you with cover. The information required may extend to parts of your medical history.
If you don’t provide the insurer with all the requested information, they may reject your application. This may also have a negative effect on any future applications you make for trauma insurance.
It’s also important to note that if anything should happen before your application is complete that may affect the outcome, you must let your insurer know3.
Once you’ve selected the cover that is suitable for you, you’ll need to decide how to pay you premiums. Generally, you will have the choice between a stepped premium or a level premium.
With stepped premiums the amount you pay will increase each year. The amount you are required to pay will depend on factors such as your age, and the type of policy you have selected. If you opt for a stepped premium be sure to consider these rises to ensure you can afford the policy moving forward. Generally stepped premiums are cheaper from the outset than level premiums, but this may reverse the longer you hold the policy.
Level premiums remain the same over time and only increase when the provider of your policy raises their fees. While these rises are generally less than the annual price increases with stepped premiums, you will be paying more in premiums from the outset. Level premiums may be a good option if you intend on holding your policy for a long time, or want cost predictability4.
With Lifebroker you can compare trauma insurance policies online from their range of providers to find a policy and insurer that suits you and your family. Get started online today, or call our friendly team on 13 19 20.
Last Updated: 16/12/2019