Trauma Insurance in New Zealand
Trauma insurance — also known as critical illness or living assurance — pays a tax-free lump sum if you are diagnosed with a serious medical condition such as cancer, a heart attack or a stroke. It is money to use however you need while you focus on recovery.
What is trauma insurance?
Unlike life insurance, trauma cover pays out while you are still alive. On diagnosis of a covered condition, you receive an agreed lump sum with no restrictions on how it is spent — mortgage payments, treatment not funded publicly, modifying your home, or simply replacing income while you take time off work.
What it can cover
Who it’s for
- Anyone who would face financial pressure if they had to stop working to recover
- People with a mortgage or dependants relying on their income
- Those with a family history of cancer, heart disease or stroke
- Self-employed people without sick leave or employer support
What to think about
Policies differ a lot in the list of conditions covered and exactly how each is defined, so the cheapest premium is not always the best value. An adviser compares the definitions across insurers, helps you choose a sensible sum insured, and explains how trauma cover works alongside life and income protection.
Frequently asked questions
What is the difference between trauma and life insurance?
What conditions does trauma insurance cover?
Can I get trauma cover with a pre-existing condition?
Related cover
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