Critical Illness Insurance

Why Insurance Matters

A serious illness or medical event can turn your world upside down in an instant.

Whether it’s a heart attack, cancer diagnosis, stroke, or another major health crisis, the emotional impact is overwhelming, and the financial burden can be just as heavy.

That’s where Trauma Insurance from Covered Life steps in. Also known as Critical Illness Insurance, this cover provides a one-off, tax-free lump sum payment if you’re diagnosed with a covered condition. It’s designed to help you manage the unexpected costs of treatment, recovery, and lifestyle changes, so you can focus on getting better without worrying about money.

From covering medical expenses and specialist care, to funding time off work, home modifications, or travel to receive treatment, the choice is yours. You decide how to use the payout in a way that best supports your recovery and protects your family’s lifestyle.

We make trauma insurance simple, affordable, and tailored to your needs. We’ll guide you through the policy options, explain everything in plain language, and support you every step of the way, from quote to claim.

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At Covered Life, we offer clear, affordable trauma insurance options designed to protect you when life throws the unexpected your way.

Benefits

Why Choose Covered Life for Trauma Insurance?

Critical Illness Insurance Australia

Tax Free Benefit

In Australia, the once-off lump sum payment you receive when you make a claim on you critical illness insurance are generally tax-free.

Inflation Protection

You can increase your insured sum by the inflation rate or a set rate each year to keep your benefit the same without needing further medical underwriting.

Reinstatement Option

The reinstatement option allows you to continue being covered for other critical illnesses that may arise in the future, even after making an initial claim. You can restore your coverage after a claim after a specified period, usually 12 months.

Medical and
Non-Medical Costs

Payout isn’t limited to medical bills. It can also help cover everyday living expenses, mortgage or rent payments, childcare, or even time away from work for recovery.

FAQs

  • It provides a lump sum if you're diagnosed with a critical illness like cancer, heart attack, stroke, organ transplants and serious burns.

  • If you're diagnosed with a covered condition, you receive a lump sum payment to use however you need.

  • No, health insurance covers medical treatment costs, while trauma insurance provides a lump sum cash payout.

  • Yes, trauma insurance lump sum payouts are usually tax-free in Australia.

  • Yes, many insurers offer combined life and trauma policies at a discounted rate.

Quick answers to your questions about Trauma and Critical Illness Insurance