What should your crisis recovery policy cover you for?

In this continued series of articles I’ve been looking at various types of insurance cover and what medical conditions or accidents you should make sure you’re insured for.

To get some real life data informing your decisions I’ve been using statistics from 2021 using AIA Australia, one of this country’s leading insurance companies.

The number one thing that people claim for on their trauma/crisis recovery policies is cancer. For women, 78% of claims were for cancer, including breast cancer. For men the figure was 41%. The youngest claim was for a 4 y/o and the oldest claim was for a 71 y/o. The average claim age was 58, which might seem surprisingly young. In 2020, nearly 150,000 new cases of cancer were diagnosed amongst Australians. Break cancer alone accounts for nearly 20,000 annual new cases and prostate cancer 16,700.

Cardiovascular, was the second highest category of claims, for women coming in at 7% and for men 18%. Heart attack and stroke being the major cardiovascular conditions.

Bottom line, you should consider a policy that fully covers a wide range of cancers but also make sure your insurance companies cancer definitions are up to date and relevant.

If we look at a quick snapshot of just breast cancer stats:

  • In 2020, it was estimated that 19,800 women were diagnosed with breast cancer. 
  • That’s an average of almost 400 people per day.

Following close behind cancer were cardiovascular conditions.  The greater proportion of these clients were men, in fact those with heart conditions made up 17% of all crisis recovery claims for men.  According to AIA someone in Australia suffers a heart attack every nine minutes.  Aside from this being a sad indictment on our diet, exercise, or lack of it, it’s also a sobering reminder to make sure your insurance companies definition of a heart attack fits what might happen to you.  I can’t stress this enough, you should consider being covered for the greatest eventuality that might occur. Cardiovascular is also the second highest claim reason for women with over 10% of claims relating to cardiovascular conditions.

So that’s two of the key events that might trigger a crisis recovery claim but what sort of age groups do they happen to?  Well AIA’s youngest crisis event claimant was 4 years old and the oldest 71, the average claimant was 51 based on 2021 stats.

Key crisis recovery insurance facts

  • Trauma cover/crisis recovery is generally not permitted through superannuation and needs to be taken out as a separate policy outside superannuation. As there is no “default cover” through super, often Australian’s don’t have crisis recovery insurance.

As the cost of living increases, many people look for ways to cut back where they can, including cancelling their life insurance to free up extra cash flow.

While cutting back on this expense may make sense in the short term, it could cause you significant financial hardship in the future, in the event of the unexpected diagnosis or life changing event. 

If this article has raised some issues for you contact one of our Spotter Life consultants who will be happy to talk you and provide you with general advice.

Source: Claims-brochure-2020.pdf (aia.com.au)

Trauma Cover

Spotter Life has uncovered Trauma Cover Policies from far and wide for you to choose from. Discover the options available…

Trauma Cover Insurance can be applied for by people between the ages of 17 and 59 and can cover you up until the age of 80 years old (after age 70, only Loss of Independent Existence is covered).

Trauma Cover pays a lump sum if the life insured survives for 14 days after the occurrence of one of a specified major medical conditions. Trauma Cover is available in conjunction with Life Cover or as a stand alone policy.

Spotter Life is waiting to find quotes for you


Please check you phone for an SMS with the validation code

Sorry, this code is not valid
Phone number is valid

Important Information

Not all providers in the market are included in our comparisons. Also note, any information or advice given on our website is general. It hasn’t taken into account your objectives, financial situation or needs.

  • Extent of comparisons
  • Disclaimer
  • How we get paid
  • Privacy policy
  • Download FSG

Extent of comparisons

Not all providers of insurance on the market are included in our comparisons. The amount of any savings will depend on your circumstances.

Our Panel

AIA Encompass Integrity MetLife MLC NEOS OnePath TAL Zurich


Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice on this website, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision.

Not all providers of insurance on the market are included in our comparisons. The amount of any savings will depend on your circumstances.The products compared on this website do not necessarily compare all features that may be relevant to you. Comparisons are made on the basis of price only and different products may have different features and different levels of coverage.

Spotter Life and its advisers operate as authorised representatives of Crown Wealth Group Pty Ltd ABN 22 603 037 510 Australian Financial Services Licensee 494274. Spotter Life and its advisers are authorised to advise and deal in superannuation and life insurance products only. .

How we get paid

We (including your adviser) may be remunerated in the following various ways for the financial services provided to you.


We will receive commission on any life insurance products your adviser arranges for you. This commission is built in to the cost of the insurance. The rate of commission varies between the different product providers but can be up to 140% of the initial premium and up to 40% of renewal premiums. Based on the 140% and 40% we would receive up to $1,400 upfront commission on an annual premium of $1,000 and up to $400 of each renewal premium.

Performance Bonuses

Sometimes product providers will pay us bonuses based on the business placed with that insurer. The criteria for such bonuses are typically the volume of business placed and the level of retention of that business over time.

In the event that we receive a performance bonus it will be shared with your adviser. From that part of the bonus generated as a result of business written by your adviser, the adviser may receive up to 100% of that bonus (37.5% if you have been referred by an affiliate, with the affiliate receiving 12.5%).

Alternative Benefits

We maintain an Alternative Benefits Register which contains information about any alternative forms of payment or benefits that may be received. Please let your adviser know if you have questions about or want to inspect this register. We may receive sponsorships from product providers which contributes to the professional development of our Authorised Representatives.