Personal protection
Trauma cover pays on diagnosis. not on death.
Trauma insurance (also called critical illness cover) pays a lump sum when you’re diagnosed with one of the conditions listed in the policy. cancer, heart attack, stroke, and dozens more. It’s the cushion that lets you stop working and treat the thing.
Who it’s for
This page is for you if…
- Anyone with a family history of cancer, heart disease, or stroke
- Self-employed people who can’t take six months off without losing income
- Parents who’d want to be at home. not at work. during treatment
- Couples paying down a mortgage where a serious illness would derail it
What it does
How the cover actually works.
- A tax-free lump sum on diagnosis of a listed condition (typically 40–50 conditions on a comprehensive policy)
- Covers major cancers, heart attack, stroke, multiple sclerosis, paralysis, major head trauma, and dozens more
- Partial payments on early-stage conditions (e.g., early-stage prostate cancer, low-grade carcinoma in situ)
- Once paid, the cover ends. unlike income protection, which continues paying monthly
NZ context
What you should know about this in New Zealand.
1 in 3 Kiwis will be diagnosed with cancer in their lifetime
Te Aho o Te Kahu. the NZ Cancer Agency. reports cancer incidence rising. Most people now survive it. Trauma cover is for the financial cost of that survival, not the funeral.
Wording matters more than price
Two policies at the same premium can have very different condition definitions, partial-payment rules, and reinstatement options. We compare wording line-by-line.
Standalone vs. accelerated
Trauma can be standalone (separate sum insured) or accelerated under a life policy (paid out of the life sum). Each has trade-offs. the right answer depends on your other cover.
Common myths
Three things we hear that aren’t quite right.
“Trauma pays when I die.”
Trauma pays on diagnosis. Life insurance pays on death. They’re different products.
“Cancer’s covered no matter what.”
Most policies require the cancer to meet a clinical threshold. Definitions of ‘cancer’, ‘heart attack’, and ‘stroke’ vary by insurer. that’s where wording-by-wording comparison matters.
“I’ve got health insurance, so I don’t need trauma.”
Health insurance pays the medical bills. Trauma pays the mortgage and groceries while you’re not working. Different jobs.
What an adviser does
Why this is hard to do on your own.
- Compare 40+ condition definitions across NZ insurers. the difference can be 20% of conditions covered.
- Decide between standalone and accelerated trauma based on your existing life cover and budget.
- Set the right sum insured based on the ‘treatment + 6–12 months not working’ lens, not a round number.
- Run the claim. trauma claims often need medical evidence; we coordinate with your GP and specialist.