Trauma vs Income Protection
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.
How the cover actually works.
A tax-free lump sum paid on diagnosis of a listed condition, typically drawn from 40 to 50 defined conditions on a comprehensive policy, regardless of your final medical outcome
Covers major cancers, heart attack, stroke, multiple sclerosis, paralysis, and major head trauma among dozens of listed conditions, each defined by specific clinical criteria in the policy
Partial payments are often available for early-stage conditions, such as early-stage prostate cancer or a low-grade carcinoma in situ, before the illness reaches its full severity
Once the lump sum is paid, that cover ends, unlike income protection, which continues paying a monthly benefit for as long as you remain unable to work
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
Two ways to get trauma cover sorted.
Going it alone
You compare policy wording and exclusions yourself, insurer by insurer.
No one flags it when your circumstances change and your cover no longer fits.
If a claim is ever declined, you deal with the insurer directly.
The cheapest premium today isn't checked against what it actually covers.
With a Smiths adviser
We compare trauma cover across the providers we work with, in plain English.
We review your cover again as your circumstances change, not just once at the start.
If you ever need to claim, we deal with the insurer on your behalf.
You get one recommendation based on your situation, not a single insurer's product.
Talk to an adviser about this.
Thirty minutes with a licensed Smiths adviser, no obligation. Leave your details and we'll be in touch, usually within one working day.
Full audit of your existing cover, fund, and policy wordings
Comparison across the providers we work with
A clear written recommendation in plain English
Implementation paperwork handled by us, not you
Why this is easier with an adviser.
Compare 40+ condition definitions across the insurers on our panel, where 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.
The providers we work with for this cover.
Trauma cover
Our advice covers the providers shown here, not every insurer or KiwiSaver provider in New Zealand. The panel can change, and we'll always confirm it when we give you advice.
Common questions about trauma cover.
Trauma pays on diagnosis. Life insurance pays on death. They’re different products.
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.
Health insurance pays the medical bills. Trauma pays the mortgage and groceries while you’re not working. Different jobs.
Yes. Trauma cover pays a lump sum on diagnosis of a covered condition, regardless of how the recovery goes, unlike income protection, which responds to time off work.
Other services in this area.
Talk to the team.
Book a free review with Craig, Guy or Henry. No fees, and we're there if you ever need to claim.