A neutral walk-through of how NZ trauma / critical-illness cover actually works. Every claim links to verbatim wording on the relevant insurer page — no fabricated stats, no "best for X" rankings.
Trauma cover (a.k.a. critical illness cover) pays a lump sum on diagnosis of one of a defined list of serious medical conditions. Unlike health insurance (which pays for treatment), trauma cover pays you directly. The money is yours to use however you choose: cover mortgage repayments, replace lost income, fund treatment not covered by Pharmac, modify your home, pay for childcare, or take time off work.
AIA, Asteron Life, Chubb Life, Fidelity Life, Partners Life. Each has one or more retail trauma products. The full list with reviews lives at /reviews/. Southern Cross does not currently sell standalone retail trauma cover in NZ.
Trauma cover comes in two structures:
Deep dive: /topics/accelerated-vs-standalone/.
Every NZ retail trauma policy lists a defined set of conditions that trigger a payout. The conditions are roughly standardised across insurers but the definitions vary — and the definition decides whether a specific real-world event qualifies. We render the entire matrix at /conditions/, grouped by:
Some conditions (carcinoma in situ, early prostate cancer, early melanoma, DCIS, angioplasty) trigger a partial payment rather than a full payout. The percentage varies by insurer. Deep dive: /topics/partial-payment-conditions/.
After a trauma claim under accelerated cover, buy-back lets you reinstate the underlying life cover without fresh medical evidence. Trauma reinstatement lets you re-add cover for new conditions after a partial-payment claim. Both vary in price and eligibility. Deep dive: /topics/buy-back-reinstatement/.
Future-insurability rights let you increase trauma cover at defined life events (marriage, child, home purchase, salary increase) without fresh medical underwriting. Critical for buyers with any chance of future loadings or exclusions. Deep dive: /topics/future-insurability/.
Self-inflicted injury (often with a 13-month exclusion window), war / civil unrest, criminal acts, illegal drug use, and any condition you didn't disclose at application. Deep dive: /topics/exclusions-common/.
Premium depends on age, smoker status, sum insured, structure, level vs stepped, and underwriting outcome. We don't publish indicative ranges — see /cost-calculator/ for why and how to get a real quote.
