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Trauma / Critical Illness Calculator

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Calculate how much trauma (critical illness) insurance you need. Get a lump sum on diagnosis of cancer, heart attack, stroke, and other critical conditions.

Free to useNo data storedAI insightsUpdated: February 2026

Trauma insurance (also called critical illness insurance) pays a lump sum when you're diagnosed with a specified critical illness — cancer, heart attack, stroke, coronary artery bypass, and more. Unlike income protection (which replaces income while you can't work) or TPD (which requires permanent disability), trauma pays on DIAGNOSIS regardless of whether you can still work. This means you get cash immediately when you need it most — for treatment, mortgage payments, family support, or even taking time off to recover.

Enter Your Details

Enter Your Details

$

Income you may lose during treatment and recovery

Cancer treatment can take 6-18 months; heart surgery 3-6 months

$

Debts you'd want cleared to reduce stress during recovery

$

Private treatment, specialist fees, medication, travel for treatment

IP covers ongoing income; trauma covers lump-sum costs on diagnosis

Family history may affect premiums and the importance of cover

Risk and premiums increase significantly after 40

Real-World Examples

Cancer Diagnosis at 45

Marketing manager earning $120,000 diagnosed with breast cancer. Needs 12 months treatment.

Income loss (12 months): $120,000 (partially covered by IP if held). Medical out-of-pocket: $25,000. Mortgage stress: ongoing. With $300,000 trauma cover: clears $25,000 medical, pays mortgage ($36,000/year), and provides financial cushion for recovery without income stress.

Frequently Asked Questions

Glossary

Trauma Insurance
Pays a lump sum on diagnosis of a specified critical illness, regardless of ability to work.
Buyback/Reinstatement
An option that reinstates your trauma cover after a claim, protecting against a second critical event.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Enter your annual income and expected recovery period.
  2. Add your total debts you'd want cleared during recovery.
  3. Estimate out-of-pocket medical costs.
  4. Indicate if you already have income protection.
  5. Note any family history of critical illness.
  6. See your recommended trauma cover amount.
Key Information
  • Trauma pays on DIAGNOSIS — you don't need to stop working to claim.
  • Covers ~40+ conditions including cancer, heart attack, stroke, organ transplant, MS, Parkinson's.
  • 1 in 2 Australians will be diagnosed with cancer by age 85.
  • Average out-of-pocket cancer treatment costs: $10,000-$40,000+ (private treatment significantly more).
Pro Tips
  • Trauma insurance complements income protection — IP covers ongoing income, trauma covers the lump-sum costs (medical, debt clearance, lifestyle changes).
  • Consider a 'buyback' or 'reinstatement' option — it reinstates your cover after a claim so you're protected if a second event occurs.
  • Trauma through super is limited — most super funds don't offer it. Hold it as a separate policy.
  • If you have a family history of cancer or heart disease, trauma insurance is one of the most valuable protections you can have.
Avoid These Mistakes
  • Thinking income protection covers everything — IP replaces income but doesn't cover lump-sum costs like medical bills and debt clearance.
  • Not understanding partial vs full benefit — some policies pay a partial amount for early-stage cancers or minor heart procedures.
  • Waiting too long to get cover — premiums increase significantly after 40, and pre-existing conditions may be excluded.
  • Not checking the conditions list — policies vary in how many and which conditions are covered.
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