What does Trauma Insurance Cover?


Each Trauma Insurance policy covers a specific list of illnesses and medical conditions. The policy only pays out if you are diagnosed with one of the diseases or conditions listed in your policy.

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Each Trauma Insurance policy covers a specific list of illnesses and medical conditions. The policy only pays out if you are diagnosed with one of the diseases or conditions listed in your policy.

Knowing how many conditions and severe illnesses are covered in each policy is essential because trauma insurance policies sold in New Zealand cover from 13 to 70 medical conditions with varying severity.

The only way to know and have peace of mind about what is covered is to read your policy. And I also strongly recommend requesting our third-party product quality research report.

A critical illness policy only pays out if you’re diagnosed with one of the illnesses or conditions listed in it. It is important to know not all policies are created equal.

What critical conditions are covered under Trauma Insurance?

It is different from insurer to insurer and policy to policy on what critical medical conditions are covered. 

When getting advice about Trauma Insurance, we will provide you with a Trauma Cover quality product research report. So you can have peace of mind about what you are buying and how the insurance is rated. The Trauma insurance policies we compare cover all or some of the following:

  • Cancer and tumours
  • Heart attacks
  • Stroke and nervous system
  • Organ failures and organ transplants
  • Advanced diabetes
  • Loss of hearing or sight
  • HIV
  • Alzheimer’s & Parkinson’s disease
  • Multiple sclerosis
  • Total and Permanent Disablement

Each policy will have a list of covered core diseases that pay the full trauma cover and another list of illnesses that pay a partial payment.

The core illnesses covered by the policy are usually the most severe or developed, while the additional are less severe or advanced. You will see the same medical conditions in both lists but with different degrees of severity. 

You get the full lump sum payout if you’re diagnosed with a core illness but only a partial payout if you’re diagnosed with a less severe early diagnosis.

A third option that costs less than the standard trauma policy pays out if diagnosed with a major illness and the illness is advanced in severity.

Most insurers offer free children’s cover that you can add to your policy. And you can top it up with additional children’s trauma cover. Children’s trauma insurance covers fewer medical conditions. Yet still comprehensive and covers some child-specific illnesses like:

How can I claim Trauma Insurance?

To make a successful claim on your trauma insurance policy, you must meet your insurer’s definition of the illness or condition as stated in your policy. The insurers rely on medical professionals and specialist reports to help them process claims.

The benefit payment is usually paid within weeks into your bank account.

The main difference between a Health Insurance plan and trauma cover is that the health cover reimburses your medical expenses and covers your hospitalization costs.

How many illnesses are covered?

The number of diseases and medical conditions covered by a trauma insurance policy varies.

We compare the best Trauma Insurance policies in New Zealand that cover 50 to about 70 conditions. Competition and innovation in the market lead to better policies for the consumer’s benefit. And as medical science evolves, the need for up-to-date policies is paramount. 

The insurers guarantee policy enhancements and upgrades to keep the policy evolving with time. This is an invaluable benefit.

Do I need Trauma Insurance?

Trauma Insurance provides a financial lifeline at a difficult time to help support you and your family through everyday life.

The financial consequences for you and your family due to a serious medical diagnosis in your household can be devastating.

Who will pay the mortgage or rent?

What about everyday living costs?

Having cover in place means you have the funds to pay for medical procedures and possibly avoid the public health system to get private treatment. In addition, the benefit gives you peace of mind that you have a safety net. This means you could have time off work to recover or adjust without worrying about money while healing.

Trauma Insurance is not the only way to protect yourself against the economic catastrophe ill health can lead to. 

Income Protection Insurance covers you for any medical diagnosis, not just the specific list – as long as you cannot work. In addition, it pays out a monthly salary benefit as opposed to a trauma insurance lump sum payment.

Both plans are important. If you have the budget for both, you will have more peace of mind. 

But if choosing between the two, it depends on what kind of risk you are comfortable living with and which would give you the most peace of mind.


Trauma Insurance is an insurance policy that pays out a tax-free lump sum if you are diagnosed with one of the diseases or conditions listed in the policy. It’s designed to protect you against the financial consequences of becoming seriously ill.

The main disadvantage of Trauma Insurance is that it only covers the specified conditions listed in the policy document. It does not cover all illnesses or mental health.

Several medical conditions that may prevent you from working, such as stress, repetitive strain injury (RSI), and back pain, will not be covered by your trauma policy.

The insurers we compare cover about the same diseases and conditions, but it varies slightly, and so do the different definitions for each condition.

The most common conditions claimed are cancers, heart conditions, neurological conditions such as stroke, Alzheimer’s disease and Multiple Sclerosis. Your policy will only payout if you are diagnosed with a disease listed.

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