Trauma / Critical Illness Calculator
AI + Live DataCalculate how much trauma (critical illness) insurance you need. Get a lump sum on diagnosis of cancer, heart attack, stroke, and other critical conditions.
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.
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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
How to Use
- 1Enter your annual income and expected recovery period.
- 2Add your total debts you'd want cleared during recovery.
- 3Estimate out-of-pocket medical costs.
- 4Indicate if you already have income protection.
- 5Note any family history of critical illness.
- 6See 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.
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