Trauma & Critical Illness Insurance
A tax-free 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.
- Lump sums from $50,000 to $2 million
- Covers 40+ defined critical conditions
- Pays on diagnosis — no need to stop working
- Can be linked to life and TPD cover to reduce cost
Get a Free Trauma Insurance Quote
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What is trauma insurance?
Trauma insurance (also called critical illness cover) pays a tax-free 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 for 12–24 months while you get well. Most Australians never expect to claim — but 1 in 2 men and 1 in 3 women will be diagnosed with cancer by age 85, and trauma cover is the only product designed for that moment.
What's included
Tax-free lump sum
Paid directly to you on diagnosis — use it however you need.
40+ conditions covered
Cancer, heart attack, stroke, organ failure, MS, Parkinson's, paralysis and more.
No need to stop work
Diagnosis alone triggers the benefit — you can return to work and keep the payout.
Optional child cover
Add critical illness protection for your dependent children for a small extra premium.
Linked to life cover
Bundling with life insurance typically reduces the combined premium and simplifies admin.
Reinstatement options
Some policies let you re-instate cover after a claim so you're not left permanently unprotected.
Who needs 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 the best treatment available
- Anyone with a mortgage who wants to clear it on diagnosis
- Couples where one partner would need to take time off as a carer
- Anyone who already holds life and TPD and wants full personal protection
What it costs
Indicative monthly premiums for $250,000 of trauma cover, healthy non-smoker, stepped premiums. Your actual quote will depend on your health, occupation, smoker status and the insurer chosen.
| Age | Indicative monthly premium |
|---|---|
| 30 | $25 – $45 / month |
| 40 | $55 – $95 / month |
| 50 | $140 – $240 / month |
| 60 | $340 – $580 / month |
- • Smokers typically pay 50–80% more than the figures above.
- • Linking trauma to life and TPD cover usually reduces the combined premium by 15–30%.
- • Trauma cover is held outside super (premiums paid from after-tax income).
- • Figures are indicative only and not a quote — we'll prepare a personalised comparison at no cost.
Frequently Asked Questions
Straight answers from a specialist with 8+ years of experience advising Australians.
Ready to put cover in place?
Book a free, no-obligation chat. We'll walk you through your options in plain English.