After a partial trauma claim, your cover continues at a reduced sum insured (original amount minus the partial payment). Buy Back or Reinstatement Options on most panel products let you restore the full amount, usually after a 12-month wait. This is general information, not personal advice.
Default outcome: cover continues at reduced amount
A partial trauma claim does not end the policy. The mechanics:
- The partial benefit is paid (commonly 10 to 25 percent of the original sum insured).
- Trauma cover continues at the original sum insured minus the partial payment.
- The remaining cover applies to all other listed conditions, including future severe events.
- Premiums may be recalculated to reflect the reduced sum insured.
Worked example with $400,000 trauma cover and a $40,000 partial payment for early-stage melanoma:
- Remaining trauma cover: $360,000.
- A later qualifying cancer or other condition could trigger a claim of up to $360,000.
- Cover continues until either the sum insured is fully exhausted, a 100 percent (full benefit) claim is paid, or the policy is cancelled.
Buy Back option to restore the full amount
Most panel products include a Buy Back option (also called Reinstatement Option, Buy-back, or Restoration Option) that restores the trauma cover to the original sum insured. Standard features:
- A waiting period from the partial-claim payment date, commonly 12 months.
- No new medical underwriting if exercised within the policy's specified window.
- A small premium loading reflecting the restored cover.
- Restrictions on which condition families are covered post-restoration (the same condition family that triggered the claim is usually excluded).
Panel detail:
- AIA Crisis Reinstatement: Minimum reinstated sum insured $10,000. Reinstates Crisis Recovery cover after a 12-month wait. AIA Priority Protection PDS (9 November 2025), Section 8.7.
- Zurich Trauma reinstatement: 30-day exercise window. The reinstated cover excludes the original Critical Illness Event. Zurich Wealth Protection PDS (1 November 2025).
- TAL Critical Illness Reinstatement Option: Exercised within 30 days of the 12-month anniversary of the original claim notification. Cancer, Stroke, and Heart Condition events that triggered the original claim are excluded from the reinstated cover. TAL Accelerated Protection PDS (12 December 2024), Section 2.3.3.
- NEOS Critical Illness Cover Reinstatement Benefit: Available without further medical, pastimes, or other evidence. The reinstated cover excludes the original event and specified related conditions (including melanoma in situ and early-stage prostate cancer). NEOS Protection PDS (6 December 2024).
- Encompass Critical Illness Reinstatement Option: Available only where Critical Illness Cover is structured a particular way. Encompass Protection PDS (26 September 2025).
- Futura Critical Illness Cover Reinstatement Option: Subject to a waiting period and related-condition exclusion. Futura Protection PDS (1 October 2025).
What changes after a full (100 percent) claim
A full trauma payout is different from a partial claim. The cover usually ends entirely once the full sum insured has been paid. Some panel products offer a Full Reinstatement Option for unrelated future events. It typically allows a reduced reinstated cover (commonly 50 percent or 75 percent of the original) after a 12-month wait.
Practical guidance
- Ask the insurer to confirm the Buy Back waiting period, exercise window, premium loading, and excluded conditions.
- Discuss whether the Buy Back option is automatic or must be elected at application.
- Compare panel products on Buy Back features when comparing trauma cover quotes; reinstatement terms vary materially.
- The cost of taking out new trauma cover after a serious diagnosis is usually prohibitive, so the Buy Back option is genuinely valuable cover continuity.
Read the Product Disclosure Statement for the specific Buy Back terms applying to your policy. Speak with a licensed adviser about how Buy Back features compare across the panel.