How to Compare Trauma Insurance Quotes

Published: April 9, 2019

You're at a certain age or have a family history of medical conditions and have decided to get trauma insurance. Critical illness insurance, also called trauma cover, pays you a lump sum benefit in the event you are diagnosed with one of the critical illnesses listed in your Product Disclosure Statement (PDS).

When comparing trauma insurance quotes to find a policy best suited to your requirement and budget, you might want to consider a broker or comparison website that will provide you with a side-by-side comparison of Australia’s most significant life insurance companies so that you can make an informed decision.

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How much trauma insurance do I need?

Each person's circumstances are unique. When calculating your trauma insurance cover, you should consider your current and future financial responsibilities, your number of financial dependents and your cost of living. Generally, if you have enough life insurance and income protection, then any trauma insurance amount up to $2 million might be sufficient, it all depends on your personal requirements. 

According to the Australian Heart and Stroke Charter, the total direct health costs associated with a heart attack is about $281,000 and $100,000 for stroke.

Most people determine their trauma insurance sum by the amount of money they’ll need to help them pay for medical and household expenses, as well as reduce their debts and sustain their current lifestyle.

Take note: Usually, you’ll have to serve a 90-day waiting period after your policy commences before this benefit becomes available. Also, should you be diagnosed with a critical illness, you generally need to survive for at least 14 days for a claim to be valid.

How much does it cost?

What you'll pay for a trauma insurance policy depends on various factors, including:

Your sum insured

The lump sum amount that's paid in the event you're diagnosed with one of the conditions listed in your policy documents.

Combining life and trauma insurance vs a stand-alone policy

Bundling life insurance with trauma cover might be a cheaper option; however, if you claim trauma insurance, your total coverage amount will reduce by the lump sum paid out. A stand-alone policy might be more expensive, but the benefit you receive will not affect your other cover types.

Premium structure

Stepped, level or hybrid premiums. Stepped premiums are generally cheaper at the start but increase every year as you age. Level premiums might be more expensive in the beginning, but they usually don't rise because you get older.

Your smoking status

Smokers can pay up to three times more for a policy than non-smokers, because of their increased chance of developing certain illnesses, like lung cancer.

Health and pre-existing conditions

If you had a pre-existing medical condition before applying for cover, the insurer might require you to pay a higher premium for the same level of protection than someone who did not have the condition. However, this depends on your specific pre-existing condition and which insurer you choose. You might want to consider requesting an anonymous pre-assessment from your broker before applying for a policy.

Your age and gender

Generally, the older you are, the more likely you are to develop certain critical illnesses, for example, Alzheimer’s, which is why you'll usually pay more for your trauma policy. Similarly, your gender could predispose you to certain conditions, for example, breast cancer in women and heart attacks in men over the age of 45.

The average cost of trauma insurance in Australia

Your Age and Gender Monthly Premium
40-year-old Male $26.80
40-year-old Female $30.75
45-year-old Male $46.45
45-year-old Female $47.20
50-year-old Male $87.16
50-year-old Female $74.18
Source: ComparingExpert online comparison tool

The above information is based on a non-smoking person living in Queensland purchasing $100,000 worth of trauma insurance on a stepped premium structure (April 2019).

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What to consider when comparing trauma insurance quotes online

A trauma insurance policy generally covers between 30 and 60 conditions, depending on your insurer. For example, heart attack, stroke, coronary artery bypass surgery, kidney failure, Alzheimer’s disease, motor neuron disease, and severe Rheumatoid Arthritis. When comparing trauma insurance quotes, be sure to pay attention to:

  • Your current insurance: When deciding on a trauma insurance policy and the amount of coverage you want, remember to consider the other types of insurance you already have that can help offset the cost of being diagnosed with a critical illness. For example, income protection and private health insurance.
  • The price: Don't purchase a policy with all the bells and whistles if you can't afford the premium for the long-term.
  • The number of conditions covered: Carefully review your product disclosure statement to make sure which illnesses and conditions you can claim on.
  • Policy type: While a Standard policy generally covers you for the major trauma conditions, a Plus policy usually offers protection against an additional 10 to 15 lesser critical conditions, for example, partial blindness and deafness, severe endometriosis and burns of a limited extent.
  • Expiry age: How long you want to have the policy for. Some trauma policies end when you turn 70, while others continue up to your age 80.
  • Benefit and features: When comparing trauma insurance quotes, check to see which built-in benefits each policy offers and what you can add for an extra fee. For example, life cover buy back, trauma reinstatement, and premium freeze option.
  • Standard exclusions: Assess during which events or circumstances an insurer will not pay your benefit — for example, pre-existing conditions.
  • Health rewards program: You might want to review if a policy grants you access to the insurer's wellness program, so you could potentially get premium discounts and other rewards.

Example of an online trauma insurance comparison using ComparingExpert

Compare Trauma Insurance
Trauma Insurance Quotes

Source: ComparingExpert online comparison tool

The above information is based on a non-smoking, 40-year-old male, living in Queensland purchasing $100,000 worth of trauma insurance on a stepped premium structure (April 2019).

Frequently asked questions and answers

Who offers the best critical illness policy in Australia?

The best trauma insurance policy for you depends on your unique requirements and whether you need a lump sum benefit to cover your medical bills, reduce your mortgage and support you and your family financially while you recover. Compare policies side-by-side so you can determine which one offers you the best value for money.

Do I have to be employed to be eligible for trauma insurance?

No. A trauma insurance claim is generally based on the impact a critical illness will have on the insured person’s life and not your ability to earn an income.

Won’t private health insurance cover me for critical illnesses?

While private health insurance can undoubtedly assist you in paying for hospital services and general treatments, depending on the type and level of cover you purchase, the lump sum provided by trauma insurance can support you in paying any outstanding costs and help you cover your day-to-day living expenses, such as car payments, rent and groceries.

At what age should you consider trauma insurance?

Of all the critical illness, heart attack, stroke and cancer are generally the most likely to occur, with stroke and cardiovascular problems are usually more common in people aged 65 and older.

However, traumatic conditions do not discriminate based on your age and can happen to anyone at any time. You might want to consider your family history, your current health and whether you have any financial dependents when determining at which age critical illness cover will be worth it for you.

Can you get trauma insurance for your children?

Yes. Depending on your insurer, you might get free child cover that provides a payout of up to $10,000 should your child suffer a particular critical illness such as one of the listed cancers and tumours, blood disorders or heart conditions.

Select companies might provide you with the option of adding paid for child cover that insures each child for up to $200,000.

Will I be covered for hereditary conditions?

Each life insurance company has its own underwriting guidelines, so it's best to shop around and see which one will offer you the best deal. One company might exclude coverage for a specific hereditary condition, while another might provide you with full coverage at standard rates or for a higher premium.

Is endometriosis a critical illness?

Some insurers do offer Plus trauma insurance policies which covers severe endometriosis. However, it's best to review your policy documentation and PDS for clarification.

Compare life and critical illness cover

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    Trauma insurance protects you when you are diagnosed with a listed critical illness. Start comparing policies from some of the major trauma insurance providers in Australia. Understand how critical illness insurance work, whether you need it, what illnesses are covered, and how much it costs.
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