Trauma Recover Insurance provides peace of mind that your family will not suffer financially in the event of a serious injury that makes it difficult for you to continue working. Trauma insurance can help support your family financially, and support you with medical and rehabilitation costs.

What does Trauma Recovery Insurance Cover?

Trauma insurance, also called ‘critical illness’ or ‘recovery insurance’ pays a lump sum amount if you suffer a critical illness or serious injury. While different policies have varying conditions (as disclosed in the Product Disclosure Statement, or PDS), the cover usually includes cancer, a heart conditions, major head injuries, and strokes Trauma insurance does not cover mental health conditions.

Trauma Recovery Insurance is usually used to pay for:

• Out-of-pocket medical costs.
  
• Living expenses for you and your family while you’re unable to work (this may include mortgage repayments or rent).
  
• The cost of therapy, nursing care and specialist transport.
  
• Changes to housing if needed. In some cases this may include conditions to have you cared for in specialist SDA (NDIS) accommodation.
  
• Paying back various debts, such as credit cards, or as mentioned, your mortgage.
  

The type of cover is listed in the PDS and varies from one provider to another.

Do You Need Trauma Insurance?

Deciding if you require Trauma Insurance is determine by a number of personal factors, and other insurances you might hold. Consider the following:

• What level of financial support would your family require if you couldn’t support them with an income for a prolonged period?
  
• If you have an income protection insurance policy, or a total and permanent disability (TPD) insurance policy, these can help replace lost income. You may hold these insurances through your super fund.
  
• If you hold private health insurance it’s likely that the policy includes various types of medical expenses. This may negate the need for Trauma Recovery Insurance.
  
• Will you receive support from family and friends?
  

Trauma Insurance Premiums

You can generally choose to pay for trauma insurance in the following ways:

• Stepped premiums. The stepped premium is recalculated at each policy renewal, usually increasing each year based on the higher chance of a claim as you age.

• Level Premiums. In the case of a level premium, you are charged a higher premium at the start of the policy, but changes to cost aren’t based on your age so increases happen more slowly over time.

Your choice of stepped or level premiums has an impact on how the total cost of the premium now and in the future. You may choose to purchase Trauma Cover as part of Life Cover or Total and Permanent Disability Insurance.

Disclosing Information to Your Insurer

You are a risk investment for an insurance agency, and you’re required to disclose any and all information that might impact upon their decision to cover you with trauma insurance. Failing to disclose important information may negate any claim that you might be paid in the future.

The basic questions an insurer will ask include the following (all will impact upon the cost of a premium):

• Your age
  
• Your job or occupation (each occupation includes a risk score)
  
• Your medical history
  
• Your family history, such as a history of disease
  
• Your lifestyle (for example, if you’re a smoker)
  
• Any high risk sports or hobbies (such as skydiving or horseback riding)
  

A medical examination may be required depending upon your circumstances and history. The outcome of the medical may impact the type of insurance each insurer will provide.

Comparing Trauma Insurance Cover

Not all insurance policies are created equal. The Product Disclosure Statement (PDS) should be consulted for full terms and conditions applied o the product. The most basic features you’ll want to compare include the following:

• The types of critical illnesses and serious injuries that are covered by the policy.
  
• The types of trauma the policy will not cover (the exclusions).
  
• The waiting periods before you can claim on the policy.
  
• Any limitations that might apply on the policy or cover.
  
• The cost of the premium over time, with consideration to the payment schedule.
  

Your adviser will review these conditions in details by comparing multiple policies against each other and matching each policy to your own specific circumstances.