When a Trauma Claim is Paid - Diagnosis

A trauma insurance policy, sometimes known as critical insurance, will pay out a tax free, lump sum amount upon diagnosis of a critical condition. Depending on which company you choose to hold your policy with, there are generally in between 30 to 40 conditions that are covered.

While each company will vary with what is covered under their specific guidelines, what doesn’t vary from company to company is the fact there are no waiting periods, unlike other types of insurance. Total and permanent disablement insurance has a minimum 6 month waiting period, before you can make a claim. Income protection has an agreed upon waiting period, ranging from 14 days to 2 years.

Besides the specific guidelines of what each company covers, the only other condition of trauma cover is specific to the first 3 months of the policy. If you fall ill with a stroke, cancer or heart condition, you are unable to claim within the first three months. Once this period of time has passed, you are eligible to claim for any trauma condition included in your policy.

To give you an indication of what types of conditions are covered under most policies, see the list detailed below:

• Cancer
• Coronary By-Pass Surgery
• Heart Attack
• Stroke
• Benign Tumors
• Blindness
• Cardiomyopathy
• Chronic Kidney Failure
• Chronic Liver Disease
• Chronic Lung Disease
• Coma
• Dementia & Alzheimer’s
• Loss of Hearing
• Loss of Limbs
• Major Head Trauma
• Motor Neurone Disease
• Muscular Dystrophy
• Severe Burns

As each company varies, you would have to check the insurer’s Product Disclosure Statement to see what is covered under your policy, or speak to an insurance adviser.

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