01
Life insurance
Generally designed to support the people you leave behind if you die, subject to the policy terms.
Trauma cover and critical illness insurance
Support for the financial impact of a serious illness.
Trauma insurance, often called critical illness cover, may provide a lump sum when a condition meets the policy definition. It is designed to give you options when life changes suddenly.
The basic idea
A lump sum, subject to the policy wording.
Trauma cover is designed for specified serious illnesses and injuries. If a claim meets the insurer's definition, the policy may pay a lump sum that can be used for treatment, debt reduction, time away from work, support at home, or whatever is most useful at the time.
It is not a replacement for life insurance or income protection insurance. Those covers address different financial problems.
02
Trauma cover
Generally a lump-sum payment for a covered serious condition while you are alive, subject to the policy definition.
03
Income protection
Generally designed to provide a monthly benefit while you are unable to work, subject to the policy terms.
What to compare
The definition matters as much as the cover amount.
Conditions such as cancer, heart attack and stroke are commonly associated with trauma cover, but eligibility depends on each insurer's definitions, severity thresholds, exclusions and policy wording. A condition name on its own is never a promise that a claim will be payable.
When we review existing cover, we help clients understand the definition, amount, premium structure and how it works with their mortgage, savings, life cover and income protection. For a broader view of protection around a home loan, see our mortgage protection insurance guide.
Questions people ask
General information before a proper review.
What is another name for trauma insurance?
It is often called critical illness cover. The name varies, but the policy wording determines what the insurer covers and when it may pay.
Can trauma cover help with a mortgage?
A lump sum may give a household choices if a serious illness occurs, including reducing debt or meeting other costs. The appropriate amount depends on the person's circumstances and the policy terms.
Do I need trauma cover if I have health insurance?
Health insurance and trauma cover are different. Health insurance may contribute to eligible treatment costs, while trauma cover may provide a lump sum for a covered condition. The right combination depends on personal circumstances.
Understand the protection you already have.
Start with a free, no-obligation conversation. We can explain how your existing life, trauma and income protection work together.