Trauma & Critical Illness Insurance
A lump sum paid on diagnosis of a serious medical condition such as cancer, heart attack or stroke, so you can focus on recovery instead of bills, even if you eventually return to work.
- Indicative lump sums from $50,000 to $2 million. Benefit limits and availability vary between insurers and products
- Covers a defined list of critical conditions, which varies by product
- Generally pays on diagnosis of a covered condition, subject to policy definitions
- May be linked to life and TPD cover, depending on the insurer
Get a Free Trauma Insurance Quote
Fill in your details and we'll send general trauma insurance information within 24 hours.
What is trauma insurance?
Trauma insurance (also called critical illness cover) pays a lump sum if you're diagnosed with one of a defined list of serious medical conditions. The benefit is paid on diagnosis. You don't need to be unable to work, and you don't need to die. It's the cover that fills the gap between income protection (which replaces income) and life/TPD (which pay only on death or permanent disability).
The lump sum can be used for anything: clearing the mortgage, paying for specialist treatment in Australia or overseas, modifying your home, taking your family on the recovery trip you've always promised, or simply removing financial pressure while you get well. Cancer Australia reports that around 1 in 2 Australians will be diagnosed with cancer by age 85, and trauma cover is designed to respond to that kind of diagnosis.
What may be included
Lump sum benefit
Where a claim is admitted, a lump sum may be paid to you on diagnosis of a covered condition, subject to policy terms.
Defined conditions covered
Condition lists vary by product and commonly include cancer, heart attack, stroke, organ failure, MS, Parkinson's and paralysis, subject to policy definitions.
No need to stop work
Diagnosis of a covered condition may trigger the benefit, subject to the policy definitions, even if you return to work.
Optional child cover
Some products offer optional critical illness cover for dependent children for an additional premium, where available.
Linked to life cover
Some products allow trauma cover to be linked with life cover. Features, benefit limits, definitions and availability vary between insurers and products and are subject to eligibility, underwriting and the applicable policy terms.
Reinstatement options
Some policies may allow cover to be reinstated after a claim, depending on the product terms.
Who commonly considers trauma insurance?
- Anyone with a family history of cancer, heart disease or stroke
- Self-employed Australians without sick-leave entitlements
- Parents wanting a buffer to pay for specialist treatment
- Anyone with a mortgage who wants to clear it on diagnosis
- Couples where one partner would need to take time off as a carer
- People who already hold Life and TPD cover and want to understand options for broader insurance protection
What it costs
Indicative monthly premiums for $250,000 of trauma cover, healthy non-smoker, stepped premiums. Figures are indicative only, are product-dependent and are subject to insurer eligibility and underwriting.
| Age | Indicative monthly premium |
|---|---|
| 30 | $25 - $45 / month |
| 40 | $55 - $95 / month |
| 50 | $140 - $240 / month |
| 60 | $340 - $580 / month |
- • Smokers generally pay materially more than the figures above, and the loading varies by insurer.
- • Some insurers may offer different pricing when trauma is linked to life or TPD cover. Actual premiums depend on the insurer, policy structure and applicant.
- • Trauma cover is generally held outside super, with premiums paid from after-tax income.
- • Figures are indicative only and not a quote. Features, benefit limits, definitions and availability vary between insurers and products and are subject to eligibility, underwriting and the applicable policy terms.
These figures are illustrative only and are not a quote. Premiums, features, limits and availability depend on the insurer, product, policy structure, occupation, health, age, smoking status, eligibility and underwriting. Refer to the relevant Product Disclosure Statement and obtain a current quote before making a decision.
Frequently Asked Questions
Straight answers from a specialist helping Australians.
Ready to put cover in place?
Book a free, no-obligation chat. We'll explain the available options in plain English as general information, not personal advice.
Approved Product List
Our product comparisons are limited to the life insurance products available through our licensee-approved product list. We do not compare every insurer or insurance product available in the Australian market.
Products currently available through our approved product list: Neos Protection, Encompass Protection, Futura Protection, PPS Mutual.
General Advice Warning
The information on this website is general information only and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information, you should consider its appropriateness having regard to your own objectives, financial situation and needs, and consider the relevant Product Disclosure Statement (PDS), Target Market Determination (TMD) and our Financial Services Guide (FSG).
Read our Financial Services Guide.