How NZ trauma cover premiums are set

The seven inputs that drive premium

1. Age at entry — premium roughly doubles every 10 years. The single biggest driver.
2. Smoker status — smokers pay a meaningful loading; the percentage varies by insurer and age band.
3. Sum insured — proportional. Common bands sit between modest and substantial cover; size to your specific risk (debt, income replacement, dependants, treatment costs).
4. Structure: accelerated vs standalone — accelerated trauma (reduces underlying life cover) is cheaper; standalone trauma (separate from life) costs more but keeps life cover intact. See the topic page.
5. Level vs stepped premium — level premium costs more upfront but is fixed; stepped is cheaper now but increases each year. Model age-55 cost before deciding.
6. Underwriting outcome — pre-existing conditions, family history, BMI, occupation can all trigger loadings or exclusions. The specific loading depends on the underwriter's assessment.
7. Optional benefits — children's trauma rider, future-insurability, partial-payment upgrades each add premium.

Why no fabricated table

The FMA's fair-dealing provisions discourage indicative pricing tables that don't reflect underwriting. Two 40-year-olds of identical health can pay materially different premiums depending on family history, occupation and chosen structure. Publishing a single "trauma cover at 40 = $X/month" figure is misleading.

What to do instead

• Get a real quote through the licensed adviser flow — they'll model accelerated vs standalone and level vs stepped at your specific age + health.
• Compare cover (not price) using the 40-condition matrix — same sum insured at the same age, different policies pay different amounts at claim time. That's the real value gap.
• Read each insurer's review to see what their wording actually covers.

What we'll never publish here

• Indicative monthly premiums by age band (fabricated without your underwriting).
• "Cheapest trauma cover" rankings (no published methodology meets FMA fair-dealing).
• Specific dollar savings claims ("save $XXX/yr by switching").
• Insurer-specific premium examples that aren't your real underwritten figure.

Operated by Evolve Group Limited (FSP711891), an FMA-licensed Financial Advice Provider. See /disclaimer/ for full disclosure.