Personal InsuranceCritical Illness Insurance
Being diagnosed with a serious condition like cancer, heart attack or stroke can change everything. Critical illness cover gives you a lump sum so you can focus on recovery, not bills.
01Why critical illness cover matters
Have you thought about what you'd do if you were seriously ill but still needed to pay the mortgage, other debts and everyday living expenses? Serious illnesses like cancer, heart attack or stroke typically require extensive treatment that isn't fully covered by private health insurance and many people go on to make a full recovery within a relatively short window, sometimes returning to work within a couple of months.
A critical illness payout exists to remove the financial pressure during that window, so your treatment choices and recovery timeline are shaped by what's medically right for you not by what you can afford.
02How it works
Critical illness (also known as trauma) insurance pays a lump sum when you're diagnosed with a condition that meets the specific definition set out in the insurer's Product Disclosure Statement. Unlike income protection, it generally doesn't depend on whether or when you return to work. It can be taken as a stand-alone policy or attached to a life insurance policy.
03Conditions commonly covered
This is a general guide only the exact conditions, and how each is defined, vary from insurer to insurer and policy to policy. Always read the relevant PDS.
Heart Attack
Cancer
Parkinson's Disease
Bypass Surgery
Multiple Sclerosis
Stroke
Chronic Kidney Disease
Major Organ Transplant
Coma
Loss of Speech / Sight / Hearing
Severe Burns
Paraplegia / Quadriplegia
CONDITIONS COMMONLY COVEREDWhat trauma cover pays out on.
Trauma cover triggers on diagnosis, not on whether you have stopped working.
Heart Attack
Multiple Sclerosis
Stroke
Chronic Kidney Disease
Cancer
Paraplegia / Quadriplegia
Bypass Surgery
Major Organ Transplant
Coma
Parkinson's Disease
Severe Burns
Loss of Speech / Sight / Hearing
Indicative only. Every insurer defines these conditions differently, check the PDS.
Worth knowingNot all policies are equal
Some cover a narrower list of conditions, others a broader "extended" list that increases your chance of a valid claim. We help you understand exactly what you're comparing.
Why Covered LifeAdvice that actually fits your life
We are not a call centre. Every policy is structured around your circumstances, and we stay with you through to claim.
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Broader condition lists
We help you compare "standard" vs "extended" definitions so you understand what's actually covered.
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Flexible structuring
Stand-alone or attached to life cover whichever suits your budget and goals.
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Claims support
We help manage the claims process so you can focus on treatment and recovery.
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Regular reviews
As new conditions and better definitions come to market, we help you keep pace.
1 in 3
Around 1 in 3 Australians will be diagnose with cancer before age 75
Source: Roy Morgan, April 2026.
Why it mattersCover pays out, and pays out often
Life insurance in Australia is closely regulated and the claims genuinely get paid. These are the most recent admitted claim rates published by APRA and ASIC.
are admitted and paid
are admitted and paid
and paid
Also worth consideringCover that works alongside this
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01
Life Insurance
A lump sum for your family to clear debts and maintain their lifestyle if you pass away.
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02
TPD Insurance
A lump sum if illness or injury leaves you permanently unable to work.
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03
Income Protection
Ongoing monthly income if sickness or injury stops you from working.
Common questionsAnswers, without the confusion
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Critical illness pays a one-off lump sum on diagnosis of a defined condition, generally regardless of whether you're able to keep working. Income protection pays an ongoing monthly benefit tied to your inability to work.
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TPD requires you to be permanently unable to work; critical illness pays out on diagnosis of a specific condition, whether or not it turns out to be permanent.
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Yes — it's commonly attached to a life policy as a rider, or taken out as a stand-alone policy.
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Anything you need — treatment costs, clearing debt, replacing lost income, or funding time away to recover or travel.
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Most policies do, subject to the insurer's terms — this is worth checking specifically given how common mental health-related claims have become.
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No — definitions and the range of conditions covered vary significantly between insurers and policies, which is why comparing the PDS really matters.
Still not sure? A short phone call usually clears it up faster than reading another page.
Ready when you areGive yourself the freedom to focus on recovery
Speak to our specialists today for a free, no-obligation quote.