Underwriting Trauma Insurance

The process of underwriting trauma insurance is very similar to underwriting most other forms of life insurance, however there are some differences worth pointing out.

As we know, trauma insurance covers major illnesses, whilst life insurance, TPD insurance and income protection all include cover for accidents.

What this means is that whilst dangerous pastimes or a hazardous occupation will definitely have an impact on the policy manufacturer’s underwriting of most types of life insurance, it can have a reduced impact on the underwriting of a trauma insurance policy.

There may be examples were a pastime or occupation can contribute to someone’s likelihood of suffering a major illness, but generally not.  This doesn’t necessarily mean that the insurer will still cover the activity, and indeed they may still place an exclusion for the activity concerned.

Family health history can also have more impact on underwriting a trauma insurance policy compared with a TPD policy.  There are many illnesses that could result in a trauma insurance claim that may not necessarily result in a TPD insurance claim.

Some types of existing injuries can also be underwritten differently for trauma insurance.  For example, an existing back complaint may result in an exclusion on a TPD insurance or income protection policy, but an exclusion of this type would generally not be required on a trauma insurance policy.

Generally speaking the policy manufacturer will go through a very similar underwriting process for all types of life insurance, including trauma insurance, but it is important to note that there can be slight differences in the process.

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