Compare Trauma Insurance
Trauma insurance cover (or Critical Illness insurance) pays a cash lump sum to help with the financial stresses caused by a serious illness
Why is Trauma Insurance cover important?
Trauma insurance cover (also known as Critical Illness insurance) pays a cash lump sum if you are diagnosed with a serious medical condition such as cancer, stroke, heart attack or up to 50 other conditions.
Trauma insurance is intended to relieve financial pressure so that you can focus on your recovery. There can be expensive medical treatments involved and a period of time when you cannot work.
The trauma cover payout can be used for some of the following purposes:
- Pay out-of-pocket medical costs (not covered by your health insurance)
- Cover living expenses and childcare costs while you are recuperating
- Allow your spouse or family member to stop work to care for you
- Keep up debt repayments and possibly pay down debts
- Allow you to make lifestyle changes such as reducing work hours or increasing family time/holidays
How much trauma cover do you need?
The amount of cover required will depend on your personal circumstances.
Trauma cover can provide a financial buffer in the event of a serious medical condition. This can be important if you have limited savings to draw on, or if depleting your savings will mean a setback to other plans such as buying a home, or retiring.
As it is unknown what trauma condition you may experience in the future, it is difficult to estimate the cover needed for potential out-of-pocket medical expenses.
Cancer is the most commonly claimed trauma condition. Depending on the type of cancer suffered, Zurich have estimated in their 2024 Cost of Care study that the lifetime cost could range between $23,310 and $109,300. For this reason it common to see a minimum amount of $100,000 trauma cover recommended. However the costs associated with stroke or long term degenerative diseases can be much higher. APRA statistics show the average sum insured of accepted claims is just over $270,000.
Why do you need trauma insurance if you have TPD and Income Protection?
Trauma cover is not intended to provide long term income replacement i.e. if you are not able to return to work again (this is better protected against using income protection insurance and/or TPD insurance).
However trauma cover can deliver funds at the beginning of an illness when they are most likely to be needed.
Income protection cover has a waiting period before the benefits start to accrue. A 90 day waiting period could mean that the first payment is not received until 120 days after diagnosis, as payments are made in arrears.
TPD claims require extensive medical evidence to be provided and for alternative treatment options to be exhausted. In 2024 the average acceptance time for TPD claims was 7.3 months. As you need to be off work for a minimum of 3 to 6 months before even submitting a claim, the illness or injury is likely to be well progressed before the insurance funds are received.
On the other hand, Trauma claims tend to be processed very quickly – in 2024 the average acceptance time was 1.5 months with many claims being settled within a couple of weeks.
Receiving money upfront means that the best treatment options can be considered to aid with recovery.
Watch our trauma claim videos to see real life examples of how trauma cover has helped others.
Compare trauma insurance policies and receive 10% cashback
If you compare trauma insurance quotes online and buy a new policy through Insurance Watch we will refund 10% of the premiums you pay in the first year of your policy (or you can opt for a 5% ongoing discount). Find out more about the Insurance Watch 10% Cashback Offer
Although most Trauma insurance policies can be renewed to age 70, the premiums can become expensive as you get older. We can provide projections of the cost of stepped vs level premiums over time.
What features do the best trauma insurance policies have?
Trauma cover varies widely. We help you to compare trauma insurance policies premiums from 10 Australian insurance brands.
Our online trauma insurance comparator  enables you to find the best cover to suit your budget and needs by providing:
- Quotes for Standard, Intermediate and Best Available cover
- Policy strengths and weaknesses
- Summary of policy differences
- Overall star rating from research house Omnium ranking policies for product features, benefits and definitions
- Full product details in the Product Disclosure Statements from the insurers
When you compare trauma insurance policies it is important to consider:
- The total number of trauma benefits provided i.e. the comprehensiveness of the policy
- What medical conditions are covered and what preconditions need to be met for a successful claim
- Whether the benefits provided are Partial or Full trauma benefits
- Whether the cover is standalone or including death cover (and whether a life cover buyback option is included)
The “Best Available” policies from some insurers, such as TAL, Acenda, Encompass and Futura, offer extra benefits to women for pregnancy complications and birth defects (qualifying periods and age limits apply).
We also compare insurers offering trauma insurance cover
Claims Performance:
Using claims statistics from ASIC and APRA we compare insurance companies based on:
- Trauma claims acceptance rates
- Average claim time in months
- Number of claim disputes (per 100,000 policies)
Customer Reviews:
Read 1,700+ customer reviews and compare trauma insurance ratings for:
- Customer service both during and after a trauma insurance application
- Experience when making a trauma insurance claim
Insurance Company strength:
Also you can Compare insurance companies based on:
- Size
- History
- Ownership
- Most recent awards
Frequently
Asked
Questions
How much does Trauma Insurance cost?
The average cost of $100,000 Trauma insurance cover in Australia for a non-smoking 40 year-old is $34.05 a month for a male and $44.03 a month for a female (as at 5th January 2026). Premiums vary widely so it can pay to Compare Quotes.
Why is Trauma insurance cover important?
A serious illness such as cancer, heart attack or stroke, can result in financial stress. Out of pocket medical costs and loss of income can make it hard to pay bills and financial worries can inhibit recovery.
What is the difference between TPD and Trauma insurance?
It is generally easier to claim on a trauma policy than a TPD policy as it does not have the same requirement for your condition to be permanent and prevent you from working again. A trauma claim may be made on diagnosis of one of the conditions specified under the policy.
How to find the best Trauma insurance?
Trauma policies vary as to the number of conditions they cover, so to find the best value you need to compare policies. Check which insurance companies are the best at paying claims and have been voted the best by their customers.