Find out how much trauma insurance will cost in Australia on a monthly basis.
finder analysed trauma insurance quote for a 35 year old male who was looking for $100,000 in cover. Here's what we found:
- $22.53 per month. Was the average cost across 10 policies.
- 2 cups per week. This is how much coffee you'd need to give to cover a policy ($3 a coffee).
- $20,000. One policy offered an additional death benefit up to this amount.
To get a personalised quote based on your circumstances e.g if you're smoker, over 50 etc
Cost breakdown by brand
|Policy||Monthly premium||Trauma insurance cover||Death benefit|
|TAL Accelerated Protection||$17.08||$100,000||$0|
|BT Protection Plans||$21.80||$100,000||$10,000|
|AIA Priority Protection||$23.35||$100,000||$5,000|
|Asteron Life Complete||$25.00||$100,000||$20,000|
Prices taken from finder's quoting engine. Data last checked October 2017. For a more accurate quote, it's a good idea to speak to an adviser.
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How much you pay for trauma insurance or any kind of life insurance will be determined by several factors. Your insurer will take into account:
- Your age. The older you are, the greater the risk you pose to your insurer and the more your premiums will cost.
- Your gender. Males are typically viewed as higher risk than females and will pay more for their premiums.
- Your smoking status. Smokers are considered higher risk and can pay up to twice as much for their premiums.
- Your occupation. If your job is considered high risk (i.e. underground miner), you will pay more for your premiums.
- Your lifestyle. If you indulge in risky sports or pastimes such as skydiving or rock climbing, your premiums will be higher.
- Your current health. If you have pre-existing medical conditions you will pay more for your premiums.
- Your medical history. If you have a family predisposition to certain diseases, you will pay more for your premiums or may not be offered cover.
- Your level of cover. How much cover you want, which in the case of trauma insurance equates to how many conditions you want to be insured against, will also determine how much your premiums will cost.
Standard and premium policies: This also affects the cost of your cover
Most insurers offer two or three levels of trauma insurance and the level of cover you choose will determine how much you pay for your policy:
- Standard cover. Cover for a set number of conditions with a cap on the benefit paid for each
- Additional cover. Cover for a greater number of conditions with a higher benefit paid for each
- Premium cover. Cover for a comprehensive list of conditions with the highest benefit paid for each
How will the cost of a policy stack up with the cost of a traumatic event?
An insurer will calculate the cost of your policy by determining the average lifetime cost of each traumatic event you are covered for. For example, if the average cost of care and rehabilitation following a heart attack is $20,000, cancer is $120,000 and stroke is $150,000, providing cover of $150,000 would adequately cover all three.
On the other hand, the cost of care and support for a spinal cord injury can run into millions of dollars over a lifetime, so a much higher level of cover would be required for this condition and much higher premiums would be paid as a result.
How does smoking affect your ability to get trauma insurance?
|AMP Flexible Lifetime Protection||$22.23||$38.96||$16.73|
|TAL Accelerated Protection||$24.07||$43.45||$19.38|
|BT Protection Plans||$24.08||$44.91||$20.83|
|AIA Priority Protection||$24.62||$42.21||$17.59|
|Asteron Life Complete||$27.72||$52.70||$24.98|
|Zurich Wealth Protection||$31.05||$61.96||$30.91|
Prices take from finder's quoting engine. Data last checked February 2017. For a more accurate quote, it's a good idea to speak to an adviser.
As can be seen in these tables, smoking effectively doubles the cost of your trauma insurance. Smokers pay a greatly increased premium because they are considered much more likely to suffer from a traumatic event than non-smokers. Smoking is known to increase your chances of developing a variety of cancers and substantially increases your risk of heart attack and stroke, so it’s hardly surprising that insurers expect smokers to pay more for their trauma insurance.
How can I save money on my policy?
There are a number of ways you can reduce the cost of your trauma insurance premiums:
- Give up smoking. stop smoking and after 12 months you’ll halve the cost of your insurance.
- Change your job. If your hazardous occupation is increasing your premiums, consider moving to a lower risk occupation.
- Change your hobbies. If your high-risk pastimes are costing you more for your insurance, consider taking up golf instead.
- Apply while you are young. Take out your policy while you are young and still considered low risk by your insurer.
- Choose the right premium type. Choose stepped premiums if you want to pay less now and think you’ll be able to pay more later in life or choose level premiums and pay the same amount for the life of the policy.
- Shop around. Compare insurers and choose the cover that offers you the best value for your money.