Best Trauma Insurance in New Zealand
Get a tax-free cash lump sum benefit if you are diagnosed with one of the serious illnesses or medical conditions listed in your policy.
- By Willi Olsen
- Updated
A severe illness impacts everyday life and can lead to many months off work while regular living costs and bills increase. Recovering from a severe illness such as cancer or a heart bypass operation can take longer.
Trauma Insurance gives you and your loved ones a financial cushion to take time off work and recover. The economic impact of a critical illness can be bankruptcy, regardless if you have health insurance or not.
One New Zealander a day enters into personal insolvency procedures because of loss of income, ill-health and absence of health insurance.
Trauma Insurance can help prevent the financial hardship of becoming severely ill. In addition, if you pass away, life insurance would provide financial support to your family. We looked at trauma insurers that also offer personal insurance products to customers.
If you are considering trauma insurance either through your employer or as a personal policy, we’ve reviewed the best policies based on the following factors:
- Number of illnesses and conditions covered
- Financial stability ratings
- Options for fixed life insurance premiums
- Independent Product Quality Research
The Best Trauma Insurance Companies of 2023
- AIA New Zealand
- Asteron Life
- Chubb Life NZ
- Fidelity Life
- Partners Life
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- Early cancer upgrade benefit
- Severity based claim and benefit payout
- Allows Credit Card payments
- Multiple-Benefit discounts – up to 15%
- Digital approval
- Employer Trauma cover with automatic accepted
- No premium holiday
AIA New Zealand is the largest life and trauma insurer in New Zealand and has an impressive AA financial strength rating from Fitch.
AIA New Zealand
- Free $50k Kids Trauma Cover
- Premium holiday option
- Employer Trauma cover with automatic accepted
- Best Doctors
- Allows Credit Card payments
- Limited level premium options
2021 Life Insurer of the Year award from ANZIIF.
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- NZ’s most flexible level term
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- .Accumulative Loyalty policy discount
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What Is Trauma Insurance?
Trauma insurance was created to help cover everyday living costs and expenses you face when you are ill and unable to work. At the same time, health insurance is designed to pay for the medical bills when you are sick.
Critical illness policies don’t replace traditional health insurance. Instead, they are intended to keep a person and their family from financial hardship when facing a severe illness.
Children Trauma Insurance
Most insurers will include children’s trauma cover in your trauma cover policy, at no cost. You can buy additional children’s trauma cover as well.
What illnesses are covered by Trauma Insurance?
A trauma insurance policy usually covers between 50 and 70 defined diagnoses and critical medical conditions. In addition, some insurers offer an early partial payout that covers fewer specified illnesses.
Examples of some of the potential illnesses covered include:
- Cancer,
- Heart attack,
- Stroke,
- Major transplant surgery,
- Loss of vision or hearing,
- Heart surgery, Coronary artery bypass surgery
- Out-of-hospital cardiac arrest,
- Brain and nerve illnesses,
- Paralysis,
- Coma.
It’s important to note that some critical illness insurance policies do not cover all forms of cancer. They may also differentiate between invasive and non-invasive cancers (those that may not have spread, such as skin cancers).
Is Trauma Insurance worth it?
Critical Illness insurance is worth it if you think you will struggle economically with the financial outcomes of getting gravely ill. After all, this insurance keeps you financially afloat if you are affected by a severe illness and can’t work.
It can help pay the mortgage or rent and cover the necessities while you recover.
How much does Trauma Insurance Cost?
For a 42-year-old woman in good health, a $100,000 trauma policy could cost between $19 and $29 a fortnight.
For a 42-year-old man in good health, a $100,000 trauma policy could cost between $19 and $26 a fortnight.
Companies that offer critical illness insurance may price their plan by considering several factors. Examples include your:
- Age
- Family medical history of critical illness
- How many conditions are covered
- Gender
- Overall health
A plan that offers a higher payout or more coverage will have a higher monthly premium.
How to choose the best Trauma Insurance cover
The chances of being diagnosed with a critical illness is a hard one to think through.
Who will pay my salary if I can’t?
How will my loved ones cope?
And how do I find the best trauma insurance policy?
There are so many different policies to look into, each covering a different list of illnesses and severity. Then it’s the insurance jargon as well.
LifeCovered exists to give financial advice and recommendations, based on your needs and budget. To protect what matters most.
With us you get
- Free impartial advice about what cover you need (if any),
- Always best price, we never add any fees,
- We compare the best trauma insurance providers,
Frequently Asked Questions
Should I buy trauma insurance with life insurance?
Accelerated trauma insurance is when you combine trauma and life insurance in the same policy.
There are pros and cons to both standalone and accelerated policies. For example, accelerated trauma and life insurance payout a cash lump sum if you are diagnosed with a critical illness, become terminally ill or die.
Another benefit is trauma reinstatement: If you selected this option when taking out the policy, the best insurance policies offer you to re-instate your trauma policy.
Is Covid-19 classed as a critical illness?
No, Covid-19 (coronavirus) is not one of the conditions listed in any trauma insurance policy.
However, suppose a Covid-19 diagnosis led to other serious difficulties (e.g., stroke, heart attack, or kidney failure). In that case, these might be defined as critical illnesses in your policy. And you would be able to claim.
What is excluded by trauma insurance?
Several exclusions are common with critical illness insurance and waiting periods apply as well. The specific exclusion and waiting periods details vary depending on the insurer.
Most common exclusions include:
- Some already existing medical conditions
- Any deliberate intentional self-inflicted injury
- Any congenital conditions
- 14 days survival after diagnosis
- Death by suicide within the first 13 months of the policy