When suffering a serious illness, financial burdens do not subside. Trauma cover allows you to focus on your recovery and not worry about a hasty return to work because the lump sum benefit will help with your financial commitments.
Trauma Cover Benefit
Trauma Cover provides you with a one-off lump sum in the event of suffering a critical illness or injury for the first time after the cover starts. This payment can be used to cover unexpected medical expenses or just help ease the financial burden during treatment or recovery. The amount of illnesses or injuries covered varies between insurance companies. Some critical illnesses or injuries are subject to partial payments depending on the diagnosis.
Trauma Insurance Eligibility and Payment Options
Entry age for those who can apply for trauma insurance is 16 to 75. There is a maximum of $2 million for trauma cover, however - the cover is subject to financial & medical assessment. You can have the inflation adjustment option on your trauma, which increases annually with the consumer price index - this will increase the premium.
You can pay for your insurance by direct debit fortnightly, monthly, quarterly, half yearly or yearly and set the date at which your first payment commences to work in line with what works best with your budgeting. Credit Card, internet transfers and cheques are also acceptable forms of premium payments. Premiums are fixed for one year at a time and will normally increase with age.
You may add your trauma cover to your life insurance benefit - this is called accelerated trauma cover. If a claim is paid on this benefit, the amount claimed is then deducted from your life insurance benefit. This reduces the cost of the trauma cover, and you may add an additional benefit to "buy-back" the life & trauma benefits for an extra charge.
Trauma cover may be purchased separately from life insurance, this is called stand alone trauma cover. If claimed, this benefit does not reduce the level of your life insurance.
Financial Planning Benefit - if your life insurance benefit is more than $100,000, a further benefit of up to $2,500 may be re-imbursed to you for a fully documented financial plan prepared by a qualified financial planner - this must be approved by your insurer.
Future insurability - certain life events may allow you to increase your level of life insurance without the need for further medical evidence - such as, but not limited to; getting married, having children, taking out a mortgage, death of a spouse or child.
Child's benefit - children aged between 2 & 20 years are covered for the lesser of $50,000 or 20% of the parent's level of trauma cover. Conditions & charges may apply.