While income protection will replace a portion of your income when you cannot work, many households will also require a lump sum of money to cover other one-off expenses. These one-off costs could include:
- The cost of modifying the family home to cater for a disability
- Replacement income for a partner who wishes to undertake caring duties
- Money to cover the cost of specialist or intensive medical treatment
- A cash buffer to help pay debts and to provide peace of mind
This is where trauma insurance comes into its own. See our article on what Trauma Insurance covers for further information.
Where to find outstanding value?
Each year Canstar researches term and packaged life insurance and the associated offshoots – trauma, total and permanent disablement (TPD) and income protection. This year Canstar compared 13 companies (many of these have multiple policies) across profiles ranging in age from 20-60 years, taking into account both stepped and level premiums. Canstar has obtained quotes at various coverage amounts, altering the associated weightings assigned to each. In total, 595,458 quotes were obtained.
When it comes to trauma insurance products, two companies were identified as offering outstanding value for money: AIA Australia and OnePath.
In terms of scoring, AIA Australia received 41 five stars across 41 profiles, including the top score across the mature profile and second-top score for young and empty nester profiles. Impressively, AIA received the top feature score across all the 64 profiles measured by Canstar.
OnePath, which is also one of Canstar’s national award winners, received 76 five stars across 46 profiles. This included the top score across empty nester and middle profiles. Further details on scoring for both companies can be found in Canstar’s life insurance star ratings, here.
Click here to read more on what is trauma insurance.