Cancer can affect anyone at any age. According to Health New Zealand, in 2022, there were 28,275 new cancer registrations, with over a quarter (26.4%) aged below 60 years old. Cancer was also the leading cause of death (27.2%), followed by ischaemic heart disease (11.9%), and cerebrovascular disease (5.9%). 

Cancer accounts for over half of trauma insurance claims and over a third of life cover payouts, based on claims data from AIA, Chubb, Fidelity Life, and Partners Life.

Cancer insurance in New Zealand gives you financial support if you’re diagnosed with this common disease. Even though New Zealand’s public health system provides free cancer treatment, you may still face delays, unfunded medications, or costs not covered by the public system.

Insurance options available through Policywise – including life, health, trauma/critical illness, disability, income protection, mortgage protection, business, and group cover – can help by:

• paying a lump sum or covering diagnostic and treatment costs
• replacing lost income during treatment and recovery
• supporting you and your family financially during a difficult time.

Contact Policywise today to get quotes or speak with a friendly adviser.

Comparison of cancer cover types

Types of cancer insurance

There are different ways to buy cancer insurance in New Zealand, depending on how you want to be supported. 

Standalone cancer insurance

This dedicated plan pays a lump sum if you’re diagnosed with a covered cancer and require treatment. You can use the funds for anything you and your family need, including:

• Medical expenses if you opt to go to private facilities for diagnostic tests, specialist consultations, and treatments
• Paying for non-Pharmac funded drugs or overseas treatment
• Hiring childcare or home help
• Replacing income you and your family caregiver lost while you recover, allowing you to stay on top of household bills.

Cancer cover linked to life insurance

Some insurers allow you to combine cancer cover with life insurance, giving you protection during your lifetime and for your family after you’re gone. If you're diagnosed with a covered cancer and need treatment, you can make a claim. The payout will reduce your remaining life cover, but you'll still be insured and also able to give your family a financial cushion if you later pass away from another cause or illness.

Cancer cover for diagnosis, treatment, and recovery expenses

This covers the actual costs of cancer care plus other benefits, including:

• Private specialist consultations, diagnostic tests, and hospitalisation
• Surgery, chemotherapy, and other cancer treatments
• Pharmac and non-Pharmac Medsafe-approved cancer chemotherapy drugs
• Pre and post-surgery support
• Overseas treatment and public hospital cash benefits
• Post-cancer treatment and mental health support.

Comprehensive insurance options with cancer care benefits

Several types of insurance also have built-in cancer care benefits, with some insurers also extending free programmes to cancer patients and/or their caregivers.

Trauma (critical illness) insurance

Trauma cover (critical illness insurance) pays a tax-free lump sum if you suffer a serious illness, including cancer, or injury. 

You can use the payout for:

• Cancer-related costs, including private hospitalisation, surgery, and non-Pharmac drugs
• Rehabilitation, therapy, and home care
• Living expenses and debt payments
• Childcare or home help
• A break or family trip to recharge
• End-of-life care and funeral costs in case of a terminal condition.

Several trauma policies:

• include partial payouts for early-stage cancer
• let you claim again for new, unrelated illnesses (if you choose a multiple-claim option)
• allow you to reinstate your trauma cover so you can still be covered for other serious conditions.

You can purchase trauma insurance as a standalone cover, or you can combine it with life insurance to ensure your dependants have funds for immediate and long-term expenses if you pass away.

Health insurance

Health insurance pays for private medical care if you’re diagnosed with cancer or suffer other health conditions. The best medical insurance plans typically cover:

• Cancer diagnosis, treatment, follow-up consultations, travel and accommodation
• Private hospital surgical and medical costs
• Major diagnostic tests and scans
• Specialist consultations
• Chemotherapy, immunotherapy, radiotherapy
• Non-Pharmac-funded Medsafe medications
• Overseas treatment.

Optional cancer cover add-ons 

Some insurers offer add-ons you can include with an eligible health insurance policy, allowing you to boost your cancer cover without buying a new policy. Examples include: 

• adding a cancer lump sum benefit 
• increasing your cover for Pharmac and/or non-Pharmac-funded cancer treatments.

Life insurance with a terminal illness benefit

The best life insurance plans include a terminal illness benefit. If you’re diagnosed with terminal cancer (expected to result in death within 12 months), your full life cover can be paid out early. 

This fund can be used for anything you need, such as:

• End-of-life care and medical costs
• Trips or other ways to create memories with loved ones
• Making final arrangements, including memorial planning.

Income cover and mortgage protection insurance

Income cover and mortgage protection insurance provide monthly payments if you are unable to work due to cancer, long-term injury, or illness. These regular payments help you stay on top of your bills and housing costs, while you focus on treatment and recovery.

Some of the best income cover and mortgage insurance plans have other benefits that can support cancer patients, such as:

• Home modification or equipment expenses benefit
• Support during bed confinement and full-time care
• Rehabilitation and vocational assistance.

Some plans also allow you to add a critical illness benefit, which provides additional financial support if you suffer from a listed condition, including cancer.

Total permanent disablement (TPD) insurance

Disablement insurance pays a lump sum if cancer or other health conditions cause permanent disability and you can no longer work in your occupation or any suitable role. 

You can use the lump sum payment for private cancer treatment and recovery expenses, as well as to replace the income you and your family carer may be foregoing during your cancer journey. 

The best TPD insurance plans also provide other benefits which can help cancer patients, such as:

• Partial disability benefit
• Reimbursements for specialised equipment, vehicle and home modifications
• Counselling/grief support
• Support person accommodation and transportation.

You can get TPD cover on its own or combine it with your life insurance. Linking the two means there’s a payout whether you’re permanently disabled, diagnosed with a terminal illness, or pass away. But if you claim for TPD, your life cover amount will be reduced. Some plans offer a buy-back option, letting you restore your life cover amount later - important if you still want cover for terminal illness or death.

Why consider cancer insurance if healthcare is free in New Zealand?

New Zealand’s public healthcare system covers diagnostic tests and treatments for cancer, but there are vital gaps:

• Waiting lists: You might wait weeks or months for specialist appointments, surgeries, or scans
• Unfunded drugs: Not all effective treatments are funded by Pharmac
• Hidden costs: Cancer patients typically have to pay for medical travel, childcare, and home help while they and their family caregiver lose income due to work absences and missed career opportunities.

Cancer insurance helps by:

• giving you control and choice – choose your doctors and treatment timelines, and have funds for the purchase and administration of non-Pharmac-funded drugs
• paying for private hospital stays, tests, and cancer treatments
• replacing income while you’re off work
• helping you and your whānau stay financially resilient, allowing you to focus on your recovery.