Trauma Insurance

Eligibility Criteria

  • To be eligible to purchase a trauma insurance plan, the applicant should be a minimum of 17 years old to a maximum of 59 years old.
  • The applicant should be a permanent resident or citizen of Australia.
  • The applicant should be residing in Australia at the time of the application. The worldwide cover if applicable will begin once the policy comes into effect.
  • The applicant can opt for a policy with a compensation payment between 100,000 – $500,000. Some insurers may offer higher covers to people who earn a significantly higher income or have special needs.

 Basics of trauma insurance

  • Trauma protection plans are sometimes called critical illness plans since these plans are designed to provide a lump sum compensation payment to the policy holder if he is affected with a critical illness. Depending on the type of illness, the policy holder may be eligible to get the compensation payment from the insurer either at the time of being diagnosed with the illness by a medical professional or at the time he recovers from the critical illness.
  • Trauma protection plans pay out the pre-decided compensation amount that the insurer has decided for that particular illness. This means that if the policy holder is affected with cancer then upon diagnosis he will get the amount the insurer will normally provide for the illness.
  • Depending on the selected insurer the policy holder may receive a compensation payment for illnesses such as Alzheimer’s disease, blindness, cancer, coma, coronary bypass surgery, dementia, encephalitis, hemiplegia, chronic kidney failure, loss of independence existence, loss of speech, major head trauma, motor neuron disease, paraplegia, pulmonary hypertension, stroke, a death benefit, aortic surgery, benign brain tumours and peripheral neuropathy. Some insurers may offer the compensation payment for other illnesses as well. Some of the additional illnesses that may be protected under critical illness plans include severe burns, aplastic anaemia, heart attacks, deafness, diplegia, heart value surgery, loss of limbs, loss of eyes and Parkinson’s disease.

Benefits offered by trauma insurance

  • The basic benefit is the lump sum compensation payment and this benefit is given upon successful diagnosis of the illness. The basic benefit can be used by the affected person to pay for immediate hospital bills, repay outstanding loans and debts or leave some money for his family after he is no more. This compensation payment can also be used for other purposes such as to keep the policy holder comfortable while he is alive. The amount given to the policy holder can be used as per his discretion after the claim has been approved.
  • Critical illness covers may offer a lump sum death compensation payment to the policy holder’s family provided the policy holder has opted for this perk while purchasing the trauma protection plan.

 Limitations of trauma insurance

While trauma protection plans offer a compensation payment for many illnesses, some insurers may not offer compensation for permanent disability as part of trauma insurance plans. Both these plans offer different benefits and unless stated otherwise by the insurer, the policy holder will get the benefit payment only for illnesses.

Majority of insurers in Australia offer trauma covers however; some insurers may offer the compensation payment for only a limited number of illnesses. Buyers are encouraged to check the list of covered illnesses along with the terms of the plan before purchasing the plan and buyers are also encouraged to read the product disclosure statement before the file the claim.

Ideally buyers should get trauma insurance advice from an expert who can give them personalized advice based on their needs and circumstance at the time of filing the claim;

however if this is not possible then buyers should at least talk to an insurance representative or insurance agent, ask the relevant questions and then purchase a plan once they are certain that the plan they are selecting is ideal for them.


Important things you must know

About filing trauma insurance claims & paying premiums

  • Some insurers allow buyers to file trauma insurance plan claims online by logging on to their account on the insurer’s website. The log in details will be given to the policy holder if this option is offered. These details are given to the policy holder after he purchases the plan.
  • To be eligible to file a claim, the policy holder should file a complete claims form that is supported with medical documents and other required proofs. In case the policy holder passes away and his plan offers a death benefit, then a death certificate will have to be provided with the claim application.
  • People who have failed to pay premiums in the past, have lapsed policies or have hidden information from the insurer intentionally may not be eligible to get a compensation payment. If you are having problems paying the premiums of your policy then talk to your insurer, work out a premium payment plan and ensure that you need all the benefits that you have opted for. While it is a good idea to purchase the best cover you can afford, if you lose your job due to any reason or cannot pay the premiums due to other reason, then talk to your insurer and work out a solution.
  • In addition, to filing claims online, some insurers allow the policy holder to manage their policy online. A few of the things that can be done by logging on to your account include but are not limited to, changing personal details such as address and phone number, paying premiums online and contacting customer service representatives when required.
  • Policy holders who are given the option to pay premiums online can do so by either logging on to their account or by using the quick log in option that is offered by a few selected insurers in Australia. If eligible, the policy holders may be offered a premium discount if they pay their premiums once a year in advance to the insurer. As a general rule the higher the premium amount is, the larger the discount the policy holder will get, but some rules or restrictions may apply to these discounts.


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