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Compare trauma insurance

Trauma insurance provides a lump-sum payment if you're diagnosed with a critical illness and can be bundled with life insurance.

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What you need to know

  • Trauma insurance can pay you up to $2 million if you are diagnosed with a critical illness or suffer a life-changing injury.
  • Most insurers have a list of illnesses and injuries they will cover, such as cancer, heart attack and stroke.
  • It is usually sold as an add-on to life insurance.

Compare trauma insurance in Australia

1 - 7 of 26
Name Product Maximum Cover Maximum Entry Age Expiry Age Stand alone or Add on policy
TAL Critical Illness Insurance
$500,000
59
70
Stand-alone policy or Add-on option
NobleOak Trauma Insurance
$2,000,000
59
70
Stand-alone policy or Add-on option
Get a quote for up to $2,000,000 in Trauma Cover.
Medibank Trauma Insurance
$500,000
60
65
Add-on option
Get a quote for up to $500,000 in Trauma Cover.
Real Serious Illness Insurance
$500,000
59
65
Add-on option
Zurich Trauma Cover
$2,000,000
59
75
Stand alone
AHM Trauma Insurance
$500,000
60
60
Add-on option
Get a quote for up to $500,000 in Trauma Cover.
RAC Trauma Insurance (Only available in Western Australia)
$2,000,000
59
70
Stand-alone policy or Add-on option
When you purchase RAC Trauma Insurance, WA residents receive complimentary RAC membership which includes access to discounts on fuel, savings on shopping, entertainment and more. T&Cs at rac.com.au.
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What is trauma insurance?

Trauma insurance, sometimes called critical illness insurance, pays you a lump sum if you're diagnosed with a major medical condition. It's often available as an add-on when you take out life insurance.

The payout is tax-free and you can spend it however you like. You might want to use it to cover your medical bills, hire a care assistant or make your home accessible. Alternatively, you could use it to pay off the mortgage or other debts.

What does trauma insurance cover?

Insurers usually have a list of critical illnesses and injuries that they cover. You can find this in their product disclosure statement (PDS). These can include:

Hospital bed

Critical illnesses

For example, cancer, heart attacks and strokes, but not mental illnesses.

injury

Critical injuries

For example, major burns, loss of a limb or loss of sight.

For your claim to be successful, you'll need to provide medical evidence from your doctor proving that your condition meets the insurer's definition. For example, if you were to suffer a major head trauma, there would need to be permanent neurological damage. Similarly, some insurers won't cover early stage cancers.

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Make sure you read the PDS
2022 Finder research shows that 23% of Australians can't be bothered reading the PDS. It may be boring but it's worth it in the long run, especially for trauma insurance.

How much does trauma insurance cost?

Various factors influence the cost of trauma insurance, including your line of work, smoking habits and chosen financial benefit.

To give you an idea of how much trauma insurance might cost you, we requested quotes from a range of major life insurers. Not many insurers offer trauma insurance by itself, so we requested quotes for a life insurance policy including trauma insurance and provided the breakdown price where possible.

Single person

Trauma insurance costs for non-smokers

PolicyMaleFemale
Average$36.49$32.91
AHM Life Insurance$27.12$23.02
Medibank Life Insurance$28.54$24.22
NobleOak Premium Life Direct$30.62$28.33
AAMI Life Insurance$31.03$28.54
Insuranceline Life Insurance$31.03$28.54
Allianz Life Plan$35.96$36.17
RAC My Protection Plan$37.96$35.12
Bendigo Bank MaxLife Life Protect$69.66$59.30

Man smoking

Trauma insurance costs for smokers

PolicyMaleFemale
Average$68.15$51.10
AHM Life Insurance$46.98$31.86
Medibank Life Insurance$49.46$33.52
AAMI Life Insurance$58.29$39.44
Insuranceline Life Insurance$58.29$39.44
NobleOak Premium Life Direct$63.54$50.09
Allianz Life Plan$72.39$57.52
RAC My Protection Plan$78.76$62.09
Bendigo Bank MaxLife Life Protect$117.46$94.80

*The above quotes were generated for a 35-year-old living in NSW, taking out $300,000 life insurance with a $100,000 trauma insurance cover. The prices quoted are on a monthly basis and were generated in March 2022.

Is trauma insurance worth it?

We've broken down the advantages and disadvantages of trauma insurance to help you figure out if it's worth it for you:

Pros

  • It's tax-free. That means if you expect a $500,000 payout, that's exactly how much you'll get.
  • Money for medical treatment. A trauma insurance policy can give you the freedom to get the medical treatment you need without worrying about costs.
  • It can be put towards anything. It can help with expensive medical bills or debts you have, including your mortgage.
  • It's often bundled with life insurance. It can sometimes be cheaper than buying 2 separate policies, plus it means less paperwork to sort through.
  • It pays out even if you're not working. Unlike total and permanent disability (TPD) and income protection insurance, you can claim on a trauma insurance policy when you're not employed.

Cons

  • It doesn't pay out for every illness. Trauma insurance only pays out for critical illnesses such as cancer, heart attacks, strokes, Alzheimer's and other major diseases.
  • Medical costs may not be that much. There's a chance that the medical costs you incur will be far less than the payout.
  • Smaller life insurance benefit with bundled policies. The trauma benefit is usually deducted from the overall amount you can claim from your life insurance.
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Standalone trauma insurance vs bundled
Bundled life and trauma insurance policies typically cost less than buying a standalone policy because they can reduce life insurance payout. For example, if you claim $200,000 for a critical illness and have life insurance for $1 million, you leave your loved ones with $800,000 when your life insurance pays out.

Frequently asked questions about trauma insurance

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