What happens to my trauma insurance when I make a claim?

What happens to your trauma insurance after making a claim depends on the type of claim and your specific policy structure. For full trauma claims where you receive 100% of your sum insured for a major condition like invasive cancer or severe heart attack, your policy typically terminates entirely, meaning you no longer have trauma insurance coverage and won't pay further premiums. Some policies offer reinstatement options where you can reapply for coverage after a certain period, subject to new medical underwriting. For partial trauma claims where you receive 10-40% of your sum insured for less severe conditions like early-stage melanoma or angioplasty, the outcome varies by policy: some reduce your remaining cover by the amount paid (e.g., if you had $300,000 cover and claim $60,000, you'd have $240,000 remaining), while others may allow multiple partial claims up to a certain limit without affecting your full trauma cover. Some comprehensive policies include built-in continuation benefits that allow you to make multiple claims for different unrelated conditions over the policy lifetime. After making a claim, you generally cannot increase your cover amount for that policy, and obtaining new trauma insurance may be difficult or impossible if your health has been significantly affected. This is why some people choose to take out higher coverage initially, and why having a mix of insurance types (trauma, TPD, income protection, and life) provides the most comprehensive protection.