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What Is Trauma Cover & Why Does It Need Futureproofing?

Insurance can all be a bit daunting, confusing and scary, especially when you look at all the different products, the multitude of insurers, and the various options available and then try and compare insurance quotes. That’s why it’s important to work with an experienced insurance adviser to help guide you through the “insurance jungle”.

Trauma (Critical Conditions) Cover is an important element of any protection plan. Whenever I recommend Trauma cover, I always include the Trauma Buyback Option.

What is the Trauma Buyback Option?

“Trauma buyback” means that in the event of a trauma claim, which pays out the trauma cover sum assured, you can – after 12 months from the date of the claim – reinstate 100% of the amount of trauma cover paid out based on the terms and conditions of the original cover, without needing to provide evidence of health.  You won’t be covered for the same condition that you claimed for, but you may qualify for a discount on your premium.

The Importance of “Future-Proofing” your Trauma Insurance

The value of the Trauma Buyback Option was again recently stressed after a client of mine suffered a severe back injury and was diagnosed as being totally and permanently disabled (i.e. unable to ever resume his own normal pre-disability occupation). He received a lump-sum total permanent disability (TPD) pay-out. With the passing of 12 months from the date of the claim pay-out, he was able to exercise the Trauma Buyback Option.

This means that despite having had a TPD pay-out under the trauma policy, he is able to reinstate his Trauma cover (minus the TPD benefit) without the need for further medical assessment. He now has full cover again for some 50 critical Trauma conditions – as a result of us including the Trauma Buyback Option.

This is a great relief for the family.

We take pride in helping our clients “future-proof” their covers.

It’s what we do!