Double trauma option
Double trauma insurance benefit payments are an additional option you may choose to purchase with your standard policy. It's a topic worthy of discussion as you may find this particular feature beneficial. The double trauma cover benefit payment 'rider', 'extra' or trauma insurance policy 'add-on' is offered by a select number of insurers in Australia.
Trauma insurance basics
The basic trauma insurance policy available in Australia covers you in the event that you suffer a traumatic event as defined in an insurers product disclosure statement (PDS). This PDS will have a series of definitions of medical conditions and diseases that the insurer will cover, such as heart attack, stroke and cancer.
Trauma insurance pays a lump sum, where you have the choice of spending this money as you see fit, although people tend to spend the bulk of the funds on medical bills. You may also opt to pay for extra coverage for a 'plus' trauma policy, which will usually cover an extended list of medical conditions and diseases well worth having as a normal policy would only cover lesser conditions.
Unlike TPD insurance, trauma cover is typically paid upon diagnosis of a condition or disease as defined in a PDS. This means that after the survival period (of usually 14 days, although this can vary) the benefit payment will be paid once the definition is met and the trauma claim process is completed.
How does the double trauma insurance benefit payment work?
The double trauma insurance benefit option is relatively inexpensive and can be purchased on top of your trauma insurance policy.
The following tables are an example of how one Australian insurer's double trauma cover benefit costs.
Stepped Double Trauma
|
Age band |
Average increase |
|
20 - 29 |
4% |
|
30 - 39 |
10% |
|
40 - 49 |
23% |
|
50 - 59 |
41% |
|
60+ |
50% |
|
Overall |
23% |
Level Double Trauma
|
Age band |
Average increase |
|
20 - 29 |
11% |
|
30 - 39 |
4% |
|
40 - 49 |
11% |
|
50 - 59 |
30% |
|
60+ |
50% |
|
Overall |
18% |
On a joint life insurance and trauma insurance policy, when you make a trauma insurance claim your life insurance is reduced by the claim amount. The double trauma insurance benefit reinstates your life insurance to the full amount usually after making the trauma insurance claim. A life insurance company will also waive all future premium payments on this portion until the policy expires.
Should you purchase the double trauma insurance benefit option?
This trauma insurance policy option may or may not suit your situation. Be sure to speak with an xLife adviser to find out which life insurance companies offer the double payment option. We can compare trauma insurance policies in Australia and offer free trauma insurance quotes.
Exclusive Offer! Call xLife on 1300 135 205 today and
save up to 20% on your first year's trauma protection premium.
May 2010
