Trauma Insurance
A lump sum payment if you're diagnosed with a serious condition like cancer or heart attack.
What Is Trauma Insurance?
Trauma insurance (also called critical illness cover) provides a one-off lump sum payment when you're diagnosed with one of the conditions listed in your policy. Unlike income protection, which replaces monthly income, trauma insurance gives you a large cash sum — typically $50,000 to $500,000 — that you can use however you need.
The most commonly claimed conditions under trauma cover are cancer (accounting for around 55% of all claims), heart attack, and stroke. These three conditions alone affect a significant proportion of New Zealanders during their working years — and the financial impact extends far beyond the medical bills. Think of mortgage payments, childcare, home modifications, and the cost of a family member taking time off work to provide care.
Trauma cover is most valuable for working-age adults with dependants, significant debt (like a mortgage), or limited savings. It fills the gap between what ACC and health insurance pay — both of which cover treatment but not the broader life disruption that comes with a serious diagnosis.
What's Covered
Lump sum on diagnosis — typically $50K–$500K
Covers cancer, heart attack, stroke, and 40+ conditions
Use payment however you need — mortgage, living costs, travel
Complements health insurance and ACC
Financial cushion during long recovery periods
Child trauma cover available with most policies
Partial payment for less severe specified conditions
Premium waiver options during claim period
Who Needs Trauma Insurance?
Anyone with a mortgage or significant debt
Parents who need financial stability during recovery
Self-employed people whose business depends on their health
Adults with a family history of cancer, heart disease, or stroke
People in physically demanding occupations
Real Claim Scenarios
Breast cancer diagnosis
A 44-year-old Wellington accountant was diagnosed with breast cancer. Treatment required 6 months off work and significant emotional and practical support for her family.
Her $150,000 trauma payout covered 8 months of lost income, private treatment top-ups, and allowed her husband to reduce his hours to provide care. Recovery was focused and stress-free.
Heart attack at 51
A Queenstown business owner had a heart attack and needed 4 months of recovery before returning to work. His business couldn't operate without him.
A $200,000 trauma payment covered business overheads for 4 months, personal living costs, and cardiac rehabilitation — preserving both his health and his business.
NZ Providers Offering This Cover
A licensed adviser compares all of these on your behalf at no charge.
Partners LifeRECOMMENDED
One of the broadest trauma condition lists
AIARECOMMENDED
Strong cancer-specific benefits and wellness programme
Southern Cross
Trusted brand, reliable claims
Accuro (now UniMed)
Bundled trauma with health cover options
nib
Competitive trauma standalone policies
What Affects the Cost?
Premiums for Trauma Insurance vary between individuals. These are the key factors that determine your rate:
Sum insured — the lump sum amount you choose
Age and gender — cancer and heart disease rates vary significantly
Smoking status — significant premium loading for smokers
Health history — heart conditions or cancer history may affect acceptance
Stepped vs. level premiums — level premiums are more expensive initially but cheaper long-term
Frequently Asked Questions
What does Trauma Insurance actually cover?
Trauma insurance pays a lump sum if you are diagnosed with a specified serious condition such as cancer, heart attack, or stroke. The payment helps cover lost income, treatment costs, and life adjustments during recovery.
How much does Trauma Insurance cost per month?
Trauma Insurance starts from $45/month for a healthy adult, but your actual premium depends on your age, health history, chosen excess, and level of cover. A licensed adviser will get you an accurate personalised quote from all major providers.
Are pre-existing conditions covered?
Pre-existing conditions are typically excluded from cover, or may be subject to a premium loading. The definitions vary by insurer, and some conditions may be covered after a stand-down period. An adviser will help you understand each provider's approach before you commit.
How do I claim?
Most NZ insurers have a smartphone app for submitting claims. For surgical or hospital claims, your specialist or hospital typically handles the claim directly. For everyday cover claims, you submit receipts and are reimbursed within a few business days.
Ready to Compare Trauma Insurance?
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Get a Quote →Related Guides
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- → Frequently Asked Questions
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External resources: PHARMAC (funded medicines) · Health New Zealand (Te Whatu Ora) · FMA — Insurance guidance
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