Is trauma cover the same as health insurance?

No. Health insurance pays for medical treatment. Trauma cover pays a lump sum that you can use however you choose.

Are trauma payments taxed in NZ?

No. Trauma cover payouts are generally tax-free for personally owned policies in NZ.

Can I have trauma cover alongside income protection?

Yes. They serve different purposes and many Kiwis hold both.

What happens if I am diagnosed with a condition not on the list?

If the condition is not listed in the policy, there is no payout. This is why policy wording comparison matters.

Can children be included on a trauma policy?

Yes. Most insurers offer children's trauma cover as an add-on, typically at low cost and covering a defined list of childhood conditions.

Insurance guides for Kiwis

Plain English explainers to help you understand life, income, trauma, mortgage, and health cover.

Life 6 min read

Life Insurance NZ: The Complete 2026 Guide

Life insurance is one of the most important financial decisions you'll make. Here's everything you need to know before you buy.

Income 5 min read

ACC vs Income Protection: The Gap Most Kiwis Miss

ACC covers accidents. But what happens if you can't work because of cancer, a heart attack, or a mental health condition? That's where most Kiwis have a gap.

Life 4 min read

How Much Life Insurance Do I Need in NZ?

The 10x rule is a starting point. Here's a more accurate way to work out your number based on your mortgage, income, and family situation.

Trauma 5 min read

Trauma Cover Explained: What It Pays For and Why It Matters

Trauma cover pays a tax-free lump sum if you're diagnosed with cancer, a heart attack, or stroke. Here's what's included and what to watch out for.

Income 5 min read

Income Protection for Self-Employed Kiwis

No employer sick pay. No paid leave. No group insurance. Self-employed Kiwis carry more income risk than almost anyone else — and most are underinsured.

Mortgage 4 min read

Mortgage Protection vs Income Protection: Which Do You Need?

They both pay if you can't work — but they are very different products. One covers your mortgage, the other covers your life. Here's how to choose.

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