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Trauma Insurance

Trauma insurance provides you with a lump sum benefit if you suffer from one of the medical events specified in your policy. These usually include major illnesses such as cancer, stroke, and heart attack. The benefit payments help prevent you from worrying about your finances and instead focus on your recovery should you become seriously ill. This type of insurance may also be referred to as critical illness insurance.

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Common Questions

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Why Do I Need Trauma Insurance?

Trauma insurance can assist you financially, should you become critically ill. There are a number of different ways it may benefit you:

â—� Pay for your medical bills. With the lump sum benefit payment, you may be able to pay for your medical bills as well as the modifications that may be required in your home, such as ramps or railings to assist with your mobility

â—� Covers various medical conditions. Even if you choose a basic or comprehensive cover, you may qualify for the most common conditions such as heart attack, stroke, and cancer.

â—� Allows you to focus on your recovery. You may need to take time off your work while you're recovering, so a lump sum payment can cover for your lost wages, and allow you to focus on getting your health back

â—� Pay for your debts and the costs of your rehabilitation. Your benefit payment may also be used to cover your other financial needs such as to pay off any debts you have, as well the ongoing costs of medication and rehabilitation.

â—� Top up your cover after a claim. If your trauma cover is linked to a life insurance policy you may be able to re-purchase back the Trauma cover benefit paid to you after a specified period of time. This may help ensure that you are adequately covered for future emergencies.

â—� Provide cover for home-makers. As a home-maker, you play an important role in your household even if you don't receive get paid for the work that you perform around the house.. If you get sick, critical illness cover may help pay for the services of a housekeeper or a nanny to assist you whilst you recover from your condition.

If you require more information on specific products and benefits, please speak to your Save U professional.


What Does Trauma Insurance Cover?

Conditions covered vary from one insurance company to another, although the more common conditions such as heart attack, stroke, and cancer are usually included in most policies. The number of conditions covered varies dependent on the Insurer that you use, and the policy you purchase. Generally, the more conditions that are covered, the higher the cost of the Trauma Insurance. Optional benefits may also be purchased at an additional cost. Conditions usually included in a trauma insurance policy include:

â—� Heart attack

â—� Cancer

â—� Stroke

â—� Paraplegia

â—� Quadriplegia

Other conditions covered for an extra amount may include:

â—� Occupationally acquired HIV

â—� Occupationally acquired Hepatitis B

â—� Parkinson’s disease

â—� Chronic liver disease

â—� Heart valve surgery

To get a full list of conditions covered, please refer to the insurance company’s Product Disclosure Statement (PDS). You may also speak with a Save U professional for more information on specific product benefits and features offered by each insurance company that we work with.


What is the difference between a Partial Benefit and a Full Benefit in Trauma Insurance?

Partial payments is where the full amount of cover is not paid out, instead only a portion of the amount you are covered for is paid. This is usually for illnesses or incidents such as skin cancer or Carcinoma in situ where the diagnosis is less serious. These will often be paid only once for each condition covered. If you receive a partial benefit, this amount will be deducted from your full benefit amount. So, if for example you are covered for $300,000 in Trauma and receive a 25% Partial Benefit paid, your cover will reduce to $225,000.

The insurer’s PDS will provide you with more information on specific conditions that will receive the full benefit amount and the partial benefit amount.


How Much Does Trauma Insurance Cost?

The cost of your premium payments will depend on a number of factors, such as:

1. Your cover amount ­ the higher the level of cover you elect, the more expensive your premiums.

2. Number of conditions covered ­ choosing a policy that covers more conditions will usually attract a higher premium.

3. Additional benefits you choose ­ including optional benefits in your policy will usually result in the payment of a higher premium.

4. Your age ­ the older you are, the higher your premium.

5. Your medical history ­ if you suffered from certain conditions in the past, or are genetically predisposed to some conditions, you may pay higher premiums; this is determined during the medical underwriting process.

6. Other factors that affect your risk factor ­ these include whether or not you smoke, your gender, your lifestyle, and types of activities you engage in.

It is recommended that you choose a policy that will provide you with adequate cover for your situation. A Save U professional can help you compare policies so you can make a more informed decision.


Should I take out a Stepped or a Level Premium?

If you choose a stepped premium, your premium payments increase every year. A stepped premium will usually be cheaper at the start of the policy, and gets more expensive as you get older.

A level premium is where your premium payments remain constant annually, except for changes in government taxes or monthly fees. The premiums tend to be more expensive initially, and become less expensive over time. Level premiums will usually be cheaper in the long run, with the break even point around 10 – 12 years.

As mentioned, over time, you will pay less if you have a level premium become more affordable, so you should consider how long you’re planning on holding the policy when deciding between these options. The difference in cost may be negligible if you’re younger, but it ultimately depends on your personal situation.


How Much Cover Do I Need?

Your cover amount will depend on a number of factors including:

� Your annual salary ­ consider how much you will need in living expenses if you were to become critically ill.

� Your current debts ­ also consider any debts you may have, such as your mortgage and credit card debts to ensure that the benefit amount covers these in full.

� Your private health insurance ­ you may opt for a lower benefit amount if your private health insurance has a high cover amount and can cover some of the conditions in your trauma insurance policy


How Can I Pay for My Trauma Insurance?

You can pay for your trauma insurance from your own disposable income. Payments previously were available through super from some companies, however Trauma Insurance policies are no longer permitted to be paid through superannuation. Changes to legislation in July 2014 stopped Trauma Insurance being able to be paid through this mechanism.

Speak to a SAVE U Professional Today.

There are a wide variety of policies offered by insurances companies. Choosing a suitable product can be made quick and easy with the help of a Save U professional. We can compare the different features and benefits available, and provide you with the cost of each provider from the 12 Insurance companies we work with.
For more information, please fill in the form on this page, or call us on 1300 180 959.