Australia Trauma Insurance Calculator
Calculate Australian trauma (critical illness) cover needs and premium by age, smoker status, and sum insured. Covers cancer, heart attack, stroke, and 40+ conditions.
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Trauma Premium Estimate
Annual Premium
A$640
Monthly: A$53 · 60 conditions covered
Cover Amount
A$200.0K
Structure
Stand-Alone
Conditions
60+
Annual Premium
A$640
Super-Attached Restriction
Stand-alone trauma pays a lump sum on diagnosis/event with no super restrictions. Premium is NOT tax-deductible (personal use), but benefit is tax-free.
Typical 2026 FSC Standard Conditions
Core conditions (all retail trauma policies): cancer, heart attack, stroke, coronary artery bypass, kidney failure, major organ transplant, multiple sclerosis, motor neurone disease, Parkinson's, paraplegia/quadriplegia, severe burns, blindness, loss of hearing, loss of speech, dementia/Alzheimer's. Top-tier products add early-stage cancers (ductal carcinoma, prostate Gleason 6), angioplasty, and an additional 20+ conditions.
Trauma / Crisis Cover — what it pays for
Trauma insurance (also called critical illness or crisis cover) pays a tax-free lump sum on diagnosis of a specified serious medical event — heart attack, cancer, stroke, kidney failure, major surgeries, and 40-60+ other conditions depending on the policy. Unlike Income Protection (which replaces earnings slowly) or TPD (which requires permanent disablement), trauma pays immediately on diagnosis, letting you fund private treatment, pay off the mortgage, or take time off without waiting periods.
Why trauma is usually held OUTSIDE super
Since 1 July 2014, insurers cannot issue new trauma policies inside super that pay directly on diagnosis — the benefit must meet a SIS condition of release (permanent incapacity or terminal medical condition). In practice, that strips trauma's core value. Virtually all modern trauma cover is therefore sold stand-alone (outside super), as a rider to a retail life/TPD policy. Premiums aren't tax-deductible, but the benefit is tax-free.
FSC standard definitions (2024 update)
The Financial Services Council publishes standard minimum definitions that all member insurers must meet. Key conditions include: cancer of specified severity, heart attack (with troponin/ECG evidence), stroke causing permanent deficit, coronary artery bypass surgery, kidney failure requiring dialysis, major organ transplant, multiple sclerosis, motor neurone disease, Parkinson's, and 15+ more. Premium-tier products add early-stage/carcinoma-in-situ cancers and a broader list of 60 conditions.
How much cover to buy
Rule of thumb: 1× annual income as a minimum — enough to fund 12-18 months of recovery plus gap medical costs. Families with a mortgage: target mortgage balance or 2-3× income, whichever higher. Average trauma claim amount paid in AU in 2024 was ~A$165k. Cancer is the #1 claim cause (over 60% of claims by count).
Common questions about Trauma
What is trauma insurance?+
A lump-sum policy that pays on diagnosis of defined medical events — typically including cancer (excluding early-stage skin cancers), heart attack (troponin-defined), stroke (24-hour deficit), coronary artery bypass, MS, kidney failure, major organ transplant, and 30+ other conditions. The lump sum is tax-free and spends however you need — medical bills, mortgage payoff, family income during recovery.
How much trauma cover should I buy?+
2-3× gross annual income plus any non-mortgage debts, as a target. The calculator default of 2.5× income + debts is a reasonable baseline. Think of it as "6-24 months of breathing room" if a major illness halts your income — time to recover without asset erosion. If you already have strong IP + TPD, trauma can be smaller; if you have weak IP, trauma should be larger.
Why is trauma not available inside super?+
SIS rules prevent super funds paying "living" benefits on diagnosis events that don't meet permanent incapacity tests. Trauma therefore must be held outside super — premiums paid from after-tax income, benefit paid tax-free. No tax deduction for premiums, but the payout is clean.
Trauma vs TPD vs IP — how do they interact?+
IP replaces income while unable to work. TPD pays if you'll never work again. Trauma pays on specific serious diagnoses, regardless of work status. They don't overlap for the same event legally — many claimants receive multiple payouts (e.g., cancer diagnosis triggers trauma; if cancer prevents work, IP starts; if recovery fails, TPD eventually pays). The full stack is robust; standalone trauma is thin protection.
Are children's trauma add-ons worth it?+
Most Australian trauma policies include or offer children's trauma cover (typically $50k-$250k) for a small extra premium. Covers childhood cancers, meningitis, and some congenital conditions. Worth the modest cost if you have children — the financial shock of a seriously ill child lands harder than adult illness because of the time parents need to take off work.
Buyback and reinstatement — what are they?+
Trauma cover usually can't be renewed for the same condition once claimed. "Life insurance buyback" riders let you restore your linked life cover after a trauma claim (e.g., for a cancer diagnosis that later resolves). "Trauma reinstatement" restores full trauma cover for new/unrelated conditions 12+ months after a claim. Worth the ~5-10% premium loading if you're under 50 — significantly extends long-term usefulness.
What are 2026 premium benchmarks?+
$250,000 stepped, non-smoker: age 30 ~A$310/yr, age 40 ~A$620/yr, age 50 ~A$1,450/yr, age 60 ~A$3,850/yr. Female lives ~15% cheaper under 50 (reverse over 60 due to breast cancer incidence). Smokers +60%. Level premiums start ~80% higher than stepped but cheaper past age 45.