Skip to main content

Trauma insurance

Insurance for a critical illness or serious injury

Page reading time: 3 minutes

A critical illness or serious injury can make it difficult to continue to work. Trauma insurance can help support you and your family at this time and pay for medical and rehabilitation costs.

What trauma insurance covers

Trauma insurance, also called 'critical illness' or 'recovery insurance' pays a lump sum amount if you suffer a critical illness or serious injury. This includes cancer, a heart condition, major head injury or stroke. Trauma insurance does not cover mental health conditions.

What's covered under a trauma insurance policy and medical definitions can be different between insurers. To understand what's covered under a trauma insurance policy, read the product disclosure statement (PDS).

Trauma insurance can be used to help pay for:

Deciding if you need trauma insurance

When deciding if you need trauma insurance and how much, think about:

If you need help deciding if you need trauma insurance and how much, speak to a financial adviser.

How to buy trauma insurance

You can buy trauma insurance:

You can choose to buy trauma insurance on its own or packaged with life cover and TPD insurance. If you buy trauma insurance packaged with life cover, your life cover could be reduced by the amount paid out on a trauma claim. To see if this applies to a policy, read the PDS or ask your insurer.

Super funds no longer offer new trauma insurance policies. But if you were in a super fund that offered trauma insurance before July 2014, you might still have it through your super fund. Check your member statement or contact your super fund to find out.

Trauma insurance premiums

You can generally choose to pay for trauma insurance with either:

Your choice of stepped or level premiums has a large impact on how much your premiums will cost now and in the future.

Compare trauma insurance policies

Before you buy trauma insurance, compare policies to make sure you get the right one for you. Check:

A cheaper policy may have more exclusions, or it may become more expensive in the future.

What you need to tell your insurer

An insurer will ask you questions when you apply for or change your insurance. These questions may be about your: 

If an insurer doesn't ask for your medical history, it may mean the policy has more exclusions or narrower policy definitions.

The information you provide will help the insurer to decide:

It is important that you answer the questions honestly. Providing misleading or incomplete answers could lead to an insurer to cancel or vary your cover, or decline a claim you make. 

Making a trauma insurance claim

To claim on your trauma insurance, see making a life insurance claim for information on what to do.