Trauma Insurance As Adjunct To Life Insurance

Trauma insurance is often an adjunct to term life insurance policies, in this instance only one payout will be made - either on the trauma or on the death.

There may be financial advantage in buying life insurance cover as part of a trauma cover package rather than as a standalone policy.
However one disadvantage of this insurance option is that generally, you can only ever claim it once. It may also make your death cover void so you need to ensure that you have enough cover from Trauma or TPD payout to live for an indefinite period in case you are no longer insurable.

Consider the Buy Back Option in this case.

What is Buy Back?

Buy back option gives you the ability to repurchase an insurance benefit 12 months after benefits have been claimed and paid to you under this policy. The insurance can be purchased without the need to provide additional medical information. The type of insurance you can buy back will depend on the specific policy you have and the amount of cover.

Our advisers will be able to let you know the terms of any buy back option available to you.

Illnesses which account for most claims

According to statistics illnesses which account for most claims are:

  • Cancer 62%
  • Heart Attack 13%
  • Stroke 9%
  • Other conditions 5%
  • Coronary artery disease and bypass surgery 11%

It is imperative to read the exclusions and other conditions for the traumas covered. Pre-existing conditions must be declared.

Why claims may be declined?

Main reasons of claims being declined are the following:

  • Claims outside cover defined by policy.
  • Pre-existing condition had not been disclosed.
  • Claim made before expiry of the waiting period
  • Claim made for a condition which was not covered.
  • Suicide within 13 months of policy commencement.

Contact us on 1300 793 143 if you need more information on Trauma Insurance as adjunct to Life Insurance.

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Published on August 8-nd, 2010 in Trauma Cover
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.