What is trauma insurance in New Zealand?

Trauma insurance – also called critical illness or serious illness cover – pays a tax-free lump sum if you're diagnosed with one of the serious medical conditions listed in your policy, such as cancer, heart attack or stroke. You don't need to stop working to claim, and you can spend the money however you like: treatment, mortgage, income replacement or home modifications.

How much does trauma insurance cost in NZ?

Cost depends on your age, smoking status, medical history, occupation, how much cover you hold and whether it's standalone or accelerated (life-linked). Accelerated cover is generally cheaper than standalone. Because those factors vary so much between people, we don't publish indicative prices – an adviser will talk you through the options that fit your situation and budget.

How much trauma cover should I have?

A common starting point is one to two years of your household income, or enough to make a serious dent in the mortgage. Many New Zealanders hold between $100,000 and $1,000,000. The right number depends on your sick leave, savings, other cover and how long your household could function on one income.

What's the difference between standalone and accelerated trauma cover?

Standalone trauma sits on its own – a claim pays in full and leaves your life cover intact. Accelerated trauma is attached to a life policy, so a trauma claim reduces the life sum insured by the amount paid. Accelerated is cheaper; standalone protects the death benefit your family may still need afterwards.

Which conditions are covered by trauma insurance?

Most NZ trauma policies list somewhere between 40 and 60 conditions. Cancer, heart attack and stroke account for the large majority of claims, alongside coronary bypass surgery, multiple sclerosis, kidney failure, major organ transplant, paralysis, severe burns and loss of limbs or sight. Every condition has a specific medical definition, which is why comparing wordings matters.

Is there a stand-down period before I can claim?

Yes. New trauma policies almost always apply a 90-day initial exclusion period for cancer, heart-related conditions and stroke, so a condition that appears in the first three months isn't covered. There's also usually a survival period of around 14 days after diagnosis before a benefit becomes payable.

Do I still get paid if I keep working?

Yes. Trauma cover pays on diagnosis of a covered condition that meets the policy definition – it isn't tied to your ability to work. That's the key difference from income protection, which only pays while you're off work and unable to earn.

Can I claim more than once?

Potentially. A trauma buy-back or reinstatement option lets you restore cover 12 months after a claim, usually excluding the condition you claimed for and any related conditions. Some policies also pay several partial benefits for less severe conditions before the full sum insured is used up.

Is trauma insurance tax deductible in New Zealand?

Premiums on personal trauma policies are generally not tax deductible, and the lump sum is generally paid tax-free. Business-owned trauma cover, such as key person protection, can be treated differently – we'll flag it and recommend you confirm the position with your accountant.

Does ACC cover serious illness?

No. ACC covers injury from accidents, not illness. If you're diagnosed with cancer, have a heart attack or suffer a stroke, ACC generally provides nothing – which is exactly the gap trauma cover is built for.

Do I need trauma cover if I already have health insurance?

They do different jobs. Health insurance pays the hospital and specialists; trauma pays you. Health cover won't replace lost income, cover the mortgage while you're in treatment, or pay for a partner to take time off work. Many New Zealanders hold both.

Will a past medical condition stop me getting cover?

Not necessarily. Depending on the condition, insurers may offer cover with an exclusion, a premium loading, or standard terms after a period of good health. Because underwriting appetite differs between NZ insurers, an adviser can approach the ones most likely to accept your history.

A New Zealand woman recovering from serious illness at home, being hugged by her adult daughter

Trauma Insurance NZ · Personal Cover

A lump sum when serious illness changes everything

Trauma cover pays a tax-free lump sum on diagnosis of a listed serious condition – cancer, heart attack, stroke and dozens of others – so you can stop work, get treated and recover without watching the mortgage pile up.

Talk to an adviser

What it does

What trauma insurance actually pays for.

Trauma insurance – you'll also see it called critical illness or serious illness cover – pays a single tax-free lump sum when you're diagnosed with a condition listed in your policy and that diagnosis meets the medical definition in the wording.

It isn't tied to your ability to work, and it isn't a medical bill reimbursement. The money lands in your account and you decide what it does: cover the mortgage, replace income, pay for treatment the public system doesn't fund, or simply give your household a year of breathing room.

It matters in New Zealand because ACC covers accidents, not illness. A cancer diagnosis, a heart attack or a stroke leaves you with the same bills and no ACC support.

A trauma claim typically pays for…

Time off work through treatment and recovery
Mortgage and rent while income drops
Non-Pharmac-funded drugs and private specialists
Travel and accommodation for out-of-town care
A partner taking leave to care for you
Childcare, cleaning and household help
Home or vehicle modifications
Clearing debt to reduce monthly pressure

What's covered

The conditions NZ trauma policies cover.

Most New Zealand trauma policies list between 40 and 60 conditions. In practice, cancer, heart attack and stroke drive the large majority of claims. Each condition has a precise medical definition – which is exactly where policies differ, and where advice earns its keep.

Cancer

Most trauma claims in New Zealand relate to cancer. Cover typically begins once a tumour meets the policy's defined severity – with smaller early-stage payments for some low-grade cancers.

Heart attack

Paid on a heart attack of specified severity, measured by troponin levels, ECG changes and clinical evidence set out in the policy wording.

Stroke

Cover for a stroke producing neurological deficit, with partial payments available on some policies for milder events or transient ischaemic attacks.

Major surgery

Coronary artery bypass, heart valve surgery, aortic surgery and angioplasty – the last usually as a partial payment rather than the full sum insured.

Organ & body systems

Kidney failure, major organ transplant, chronic liver or lung disease, severe burns, loss of limbs, blindness and loss of speech or hearing.

Neurological conditions

Multiple sclerosis, motor neurone disease, Parkinson's disease, muscular dystrophy, dementia and Alzheimer's, each with defined diagnostic criteria.

Condition lists, severity thresholds and partial payment rules vary between insurers. Always read the policy wording – or let us do the comparison for you.

Who it's for

Who typically needs trauma cover in NZ.

Trauma cover is about the financial shock of a diagnosis – the months where you're still here, still paying for everything, but not earning the way you were.

You have a mortgage

A lump sum lets you make a large repayment or park the loan for a year, so treatment and recovery don't turn into arrears.

You'd run out of leave quickly

ACC covers accidents, not illness. Sick leave and annual leave rarely stretch to six months of chemotherapy or cardiac rehab.

Your partner would need time off too

Serious illness usually takes two incomes out of the household – yours, and the person driving you to appointments.

You're self-employed

No employer sick leave, and a business that slows the moment you stop. Trauma cover buys the runway to step back without selling up.

You have young children

Childcare, school runs and household help all become paid services when a parent is in treatment. Children's trauma cover can be added too.

You want treatment choice

A lump sum can fund non-Pharmac-funded drugs, private specialists or treatment overseas without draining KiwiSaver or savings.

How much cover

How much trauma cover is enough?

There's no single right number. Most New Zealanders we advise land between $100,000 and $1,000,000 – enough to fund a genuine recovery period rather than a token payment. We work it backwards from your actual costs and what you already have in place.

Work out your number

One to two years of income
The most common benchmark. Enough to stop work entirely, or drop to part-time, through diagnosis, treatment and recovery.
Treatment and travel gaps
Non-funded drugs, private specialists, dental and rehab, plus travel and accommodation if care is out of town.
A meaningful mortgage reduction
Some families use trauma cover to knock a large chunk off the home loan, permanently lowering monthly pressure.
Home and vehicle changes
Ramps, bathroom modifications, a vehicle you can actually get into – costs that arrive fast and aren't budgeted for.
Support for your partner
Cover the income your partner gives up while caring for you, and the paid help that replaces what you both used to do.

Structure & options

Standalone, accelerated, and the options that matter.

Two policies with the same sum insured can behave very differently at claim time. These are the decisions that change what you actually receive.

Standalone trauma cover

Sits on its own. A claim pays the full sum insured and doesn't reduce any life cover you hold. Costs more per dollar of cover, but keeps your family's life insurance untouched.

Accelerated (linked) trauma cover

Attached to a life policy. A trauma claim pays out of the life sum insured and reduces it by the same amount. Cheaper premiums – the trade-off is a smaller death benefit afterwards.

Trauma buy-back / reinstatement

An option on most quality NZ policies that lets you reinstate life cover (and sometimes trauma cover for unrelated conditions) 12 months after a claim, without new underwriting.

Severity-based and partial payments

Modern NZ wordings pay a partial benefit – often 20–25% of the sum insured, capped in dollar terms – for early-stage or less severe conditions, without cancelling the full cover.

Children's trauma benefit

Adds cover for your children (typically from age 2 to 21) for a smaller sum insured, so you can stop work to care for them without losing income.

Level vs rate-for-age premiums

Rate-for-age starts lower and climbs every year. Level premiums are locked to a set age and stay flat, so the total cost over a long period can compare differently. Which one suits you depends on your circumstances – an adviser can show both side by side.

How it compares

Trauma vs income protection, health and TPD.

These covers are often confused, and they solve different problems. Most households don't need all four – but they do need the right combination.

Cover	What it pays	Best for
Trauma insurance	A one-off lump sum on diagnosis of a listed serious condition	Filling the gap between diagnosis and getting back on your feet
Income protection	A monthly benefit while you're unable to work, after a wait period	Replacing ongoing income over a long recovery
Health insurance	The cost of private medical treatment and specialists	Getting treated fast, without the public waiting list
TPD insurance	A lump sum if you'll never work again	Permanent, life-changing disability

Cost

What drives the price of trauma cover.

Trauma is priced on the likelihood of serious illness, which is why age and health history move the premium more than anything else.

Age

Trauma premiums rise sharply with age because illness risk does. Locking in cover in your 30s is dramatically cheaper over a lifetime.

Health & family history

Blood pressure, cholesterol, BMI, and a family history of cancer, heart disease or stroke are all underwritten closely for trauma cover.

Smoker status

Smoker rates can be close to double. Most insurers move you to non-smoker rates after 12 months smoke-free – tell us and we'll ask.

Standalone vs accelerated

Standalone costs more than trauma linked to a life policy. Which is better depends on how much life cover you need to protect.

Sum insured & structure

The amount of cover, level or rate-for-age premiums, and whether the sum insured indexes with inflation each year.

Occupation & pastimes

Has less impact on trauma than on income protection, but hazardous work and pastimes can still affect terms.

The fine print

What trauma cover doesn't pay.

We'd rather you know this upfront than find out at claim time. None of it is unusual – but it's the part most online quotes skip over.

The most common reason a trauma claim is declined in New Zealand isn't a technicality in the wording. It's health history that wasn't disclosed at application. Tell your adviser everything, even the things you think are irrelevant.

Common exclusions and limits

Pre-existing conditions disclosed at application and specifically excluded
Conditions that don't meet the severity definition in the policy wording
Cancer, heart and stroke claims in the first 90 days of a new policy (standard initial exclusion)
Death within the survival period after diagnosis, typically 14 days
Non-disclosure of health history at application – the single biggest cause of declined claims
Conditions arising from intentional self-injury, war or criminal activity

Insurers we compare

We compare New Zealand's leading trauma insurers.

Because we're independent advisers – not tied to one insurer – we can compare condition definitions, severity thresholds, partial payment rules, underwriting appetite and price across the major NZ providers, then recommend what actually suits you.

A disclosure statement is available on request and free of charge.

How Marble Life helps

Adviser-led, no-cost, no pressure.

Our advisers are paid by the insurers when a policy is placed, so there's no cost to you for the advice, the comparison, or ongoing support at claim time.

01
Free discovery call
A no-cost, no-obligation chat about your health, income, mortgage, family and what a year off work would actually cost you.
02
Wording comparison
Trauma is won and lost in the definitions. We compare condition lists, severity thresholds and partial payment rules – not just price.
03
Structure and place cover
Standalone or accelerated, level or rate-for-age, buy-back options and children's cover – built around your budget.
04
Claims advocacy
At claim time we gather the medical evidence, manage the insurer and push back if a decision doesn't match the wording.

Related cover

Trauma cover works best alongside…

A lump sum solves the first year. These covers handle the rest – ongoing income, permanent disability, private treatment and what happens to your family if the worst occurs.

Life Insurance

A tax-free lump sum for your family if you pass away or are terminally ill.

Learn more

TPD Insurance

Cover if illness or injury means you can never return to work.

Learn more

Income Protection

A monthly benefit that replaces part of your income while you can't earn.

Learn more

Health Insurance

Fast access to private treatment, specialists and non-funded drugs.

Learn more

FAQ

Trauma insurance NZ, common questions.

Quick answers to the questions New Zealanders ask us most often. Something not covered? Just call or drop us a note.

Ask an adviser

What is trauma insurance in New Zealand?
Trauma insurance – also called critical illness or serious illness cover – pays a tax-free lump sum if you're diagnosed with one of the serious medical conditions listed in your policy, such as cancer, heart attack or stroke. You don't need to stop working to claim, and you can spend the money however you like: treatment, mortgage, income replacement or home modifications.
How much does trauma insurance cost in NZ?
Cost depends on your age, smoking status, medical history, occupation, how much cover you hold and whether it's standalone or accelerated (life-linked). Accelerated cover is generally cheaper than standalone. Because those factors vary so much between people, we don't publish indicative prices – an adviser will talk you through the options that fit your situation and budget.
How much trauma cover should I have?
A common starting point is one to two years of your household income, or enough to make a serious dent in the mortgage. Many New Zealanders hold between $100,000 and $1,000,000. The right number depends on your sick leave, savings, other cover and how long your household could function on one income.
What's the difference between standalone and accelerated trauma cover?
Standalone trauma sits on its own – a claim pays in full and leaves your life cover intact. Accelerated trauma is attached to a life policy, so a trauma claim reduces the life sum insured by the amount paid. Accelerated is cheaper; standalone protects the death benefit your family may still need afterwards.
Which conditions are covered by trauma insurance?
Most NZ trauma policies list somewhere between 40 and 60 conditions. Cancer, heart attack and stroke account for the large majority of claims, alongside coronary bypass surgery, multiple sclerosis, kidney failure, major organ transplant, paralysis, severe burns and loss of limbs or sight. Every condition has a specific medical definition, which is why comparing wordings matters.
Is there a stand-down period before I can claim?
Yes. New trauma policies almost always apply a 90-day initial exclusion period for cancer, heart-related conditions and stroke, so a condition that appears in the first three months isn't covered. There's also usually a survival period of around 14 days after diagnosis before a benefit becomes payable.
Do I still get paid if I keep working?
Yes. Trauma cover pays on diagnosis of a covered condition that meets the policy definition – it isn't tied to your ability to work. That's the key difference from income protection, which only pays while you're off work and unable to earn.
Can I claim more than once?
Potentially. A trauma buy-back or reinstatement option lets you restore cover 12 months after a claim, usually excluding the condition you claimed for and any related conditions. Some policies also pay several partial benefits for less severe conditions before the full sum insured is used up.
Is trauma insurance tax deductible in New Zealand?
Premiums on personal trauma policies are generally not tax deductible, and the lump sum is generally paid tax-free. Business-owned trauma cover, such as key person protection, can be treated differently – we'll flag it and recommend you confirm the position with your accountant.
Does ACC cover serious illness?
No. ACC covers injury from accidents, not illness. If you're diagnosed with cancer, have a heart attack or suffer a stroke, ACC generally provides nothing – which is exactly the gap trauma cover is built for.
Do I need trauma cover if I already have health insurance?
They do different jobs. Health insurance pays the hospital and specialists; trauma pays you. Health cover won't replace lost income, cover the mortgage while you're in treatment, or pay for a partner to take time off work. Many New Zealanders hold both.
Will a past medical condition stop me getting cover?
Not necessarily. Depending on the condition, insurers may offer cover with an exclusion, a premium loading, or standard terms after a period of good health. Because underwriting appetite differs between NZ insurers, an adviser can approach the ones most likely to accept your history.

Next step

Find out what a serious illness would actually cost you.

Book a free 20-minute Personal Risk Assessment with a Marble Life adviser. We'll map your sick leave, savings and existing cover, then tell you honestly how much trauma cover – if any – is worth paying for.

Book Your Personal Risk Assessment Discover Your Cover Choices

A lump sum when serious illness changes everything

What trauma insurance actually pays for.

The conditions NZ trauma policies cover.

Cancer

Heart attack

Stroke

Major surgery

Organ & body systems

Neurological conditions

Who typically needs trauma cover in NZ.

You have a mortgage

You'd run out of leave quickly

Your partner would need time off too

You're self-employed

You have young children

You want treatment choice

How much trauma cover is enough?

Standalone, accelerated, and the options that matter.

Standalone trauma cover

Accelerated (linked) trauma cover

Trauma buy-back / reinstatement

Severity-based and partial payments

Children's trauma benefit

Level vs rate-for-age premiums

Trauma vs income protection, health and TPD.

What drives the price of trauma cover.

Age

Health & family history

Smoker status

Standalone vs accelerated

Sum insured & structure

Occupation & pastimes

What trauma cover doesn't pay.

We compare New Zealand's leading trauma insurers.

Adviser-led, no-cost, no pressure.

Free discovery call

Wording comparison

Structure and place cover

Claims advocacy

Trauma cover works best alongside…

Life Insurance

TPD Insurance

Income Protection

Health Insurance

Trauma insurance NZ, common questions.

What is trauma insurance in New Zealand?

How much does trauma insurance cost in NZ?

How much trauma cover should I have?

What's the difference between standalone and accelerated trauma cover?

Which conditions are covered by trauma insurance?

Is there a stand-down period before I can claim?

Do I still get paid if I keep working?

Can I claim more than once?

Is trauma insurance tax deductible in New Zealand?

Does ACC cover serious illness?

Do I need trauma cover if I already have health insurance?

Will a past medical condition stop me getting cover?

Find out what a serious illness would actually cost you.