Trauma cover NZ
A lump sum payment on diagnosis of a major illness. Compare trauma insurance from NZ's leading providers.
Get my free trauma cover quoteWhat is trauma cover?
Trauma cover (also called critical illness cover) pays a tax-free lump sum if you're diagnosed with a serious illness like cancer, heart attack, or stroke. The money is yours to use however needed: medical costs, time off work, paying down the mortgage, treatment overseas, or just easing the pressure on your family.
Why Kiwis get trauma cover
Cancer survival rates are rising
Most claims are made by people who recover.
Treatment isn't always free
The public system doesn't cover everything.
Income gaps during recovery
Even with income protection, the gap can be huge.
Family support
Lets your partner take time off too.
What's typically included
- Lump sum on diagnosis of listed conditions
- Cover for 40+ conditions including cancer, heart attack, stroke
- Partial payments for less severe conditions on some policies
- Children's trauma options on most policies
Things to think about
Standalone vs accelerated
Accelerated reduces life cover when paid; standalone keeps it intact.
Cover amount
1 to 2 years of income is a common starting point.
Condition definitions
How insurers define 'cancer' or 'heart attack' varies.
Reviewable vs guaranteed renewable
Affects whether premiums can change as you age.
How NZQuoteCompare helps
We connect you with licensed NZ advisers who compare trauma cover across NZ's top insurers. They translate the fine print so you can compare what each policy actually pays on.
Get my free comparisonFAQ
Common questions
Most policies cover 40 or more conditions including cancer, heart attack, stroke, major organ failure, multiple sclerosis, and Parkinson's. Definitions and severity thresholds vary by insurer.
No. Health insurance pays for medical treatment. Trauma cover pays you a lump sum that you can spend however you need to.
Trauma cover lump sum payouts are generally not subject to income tax in NZ. Always check your situation with a qualified professional.
Yes. Many Kiwis pair them so the family has both income replacement (life) and recovery support (trauma).
Once diagnosed with a covered condition meeting the policy definition, you submit a claim with medical evidence. Most claims are paid as a lump sum directly to you.
This page is general information only and not financial advice. Speak with a licensed adviser for advice tailored to your situation.