The Finance Algorithm
§ Tool · tier 2 · independent

Trauma / Critical Illness Calculator.

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

Live dataFree, no signupOn-deviceupd May 2026
Inputs
Your numbers
$
$120k

Income you may lose during treatment and recovery

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

$
$400k

Debts you'd want cleared to reduce stress during recovery

$
$30k

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

40

Risk and premiums increase significantly after 40

Math updates live as you change inputs · AI runs on submit

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Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

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.

§ Worked examples

Real-world scenarios

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.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

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.