Group trauma insurance made simple

In 2023, 29,719 New Zealanders were diagnosed with cancer, and 11,628 of those diagnoses were in people aged 15 to 64. The current age-standardised rate is 355 registrations per 100,000 population.

Group critical illness insurance is a cover your business arranges for your staff. In New Zealand, it is usually called group trauma insurance, and both names describe the same product. You own the policy, your employees are insured under it, and it pays a lump sum on diagnosis of a defined serious condition such as cancer, a heart attack, or a stroke.

Policywise is an independent adviser, not an insurer. We compare group trauma cover across the insurers on its disclosed panel that offer it, at the same price as going direct.

What is group trauma insurance (employee critical illness cover)?

Group trauma insurance is a cover an employer buys for its staff. It pays a lump sum if an insured employee is diagnosed with a listed serious condition, or undergoes a listed major surgical procedure. Employee critical illness cover is the same thing under a different name.

Your business owns the policy and pays the premiums, and your eligible employees are the people insured. It can be set up on its own, or accelerated against group life cover.

Why offer group critical illness cover to your employees?

Group critical illness cover gives employees a lump sum on diagnosis, and gives the business a way to support staff financially if they're diagnosed with a serious condition. Because members under the scheme's acceptance limit are covered automatically, it also reaches staff who might otherwise face an exclusion or a higher premium.

Advantages for your business

Group trauma cover gives your whole team meaningful protection without the cost or complexity of individual underwriting.

One scheme, simpler cover

One scheme covers everyone you define as eligible. Cover amounts are set once on your policy schedule, rather than negotiated person by person, so you can put meaningful cover in front of your team without funding a lump sum yourself.

The scale of the risk

This matters because serious illness doesn't wait for retirement; it lands squarely on working-age staff.

In fact, cancer is the leading cause of long-term illness for working-age New Zealanders, with breast, bowel, prostate, lung, and skin cancers most common as employees move into their 40s, 50s, and early 60s. Cardiovascular disease follows closely behind, with heart attacks and coronary blockages frequently striking during prime working years.

A few figures put this in perspective:

• Around 9,000 strokes happen in New Zealand each year, and up to 30% occur in people under 65.
• Among Māori and Pacific peoples, that figure is even higher: 60% of strokes occur during working age (15–64 years).
• Major trauma from accidents (on the road, on farms, in industrial settings) remains a leading driver of critical disability for working-age adults, particularly in agriculture, forestry, and mining.

Part of a wider programme

Group trauma cover doesn't stand alone, either. It can sit alongside your other workplace policies as part of one group insurance programme. This includes employee health insurance, group life cover, and group income protection insurance.

Advantages for your employees

Employees get access to cover that's often easier to arrange, and sometimes better value, than what they could get on their own.

No medical questionnaire, for most staff

Applying for a personal life insurance policy usually means disclosing anything that could affect the insurer's decision—including whether it triggers an exclusion, an extra premium, or a deferral. Group trauma cover works differently.

Below the scheme's automatic acceptance limit, any employee who is at work and belongs to a scheme meeting the minimum size is insured on this easier basis, so no individual health assessment is required.

Real cover for staff with a health history

This matters most for the employees who'd struggle to get cover on their own. Someone with a past health issue can hold meaningful cover through the scheme that they might otherwise be declined, loaded, or excluded from if they applied individually.

Having a pre-existing condition doesn't automatically mean an employee misses out, or that the condition is automatically excluded. One exception: the stand-down period (covered below) can still apply if symptoms of that condition first appear within the first three months of cover.

Above the automatic acceptance limit

For cover amounts above the scheme's automatic acceptance limit, employees may face non-standard terms instead, such as added conditions, which on some plans can also mean a higher premium.

Group trauma insurance: Features and benefits

Group critical illness cover comes with up to five main features, each solving a different problem for you as an employer. Plans vary, so check your scheme's policy wording or ask your adviser for the specifics that apply to you.

A defined list of covered conditions

Every scheme sets out, in full, the conditions and major surgical procedures it covers in its policy wording.

Why it matters: you and your employees know exactly what's covered from day one, with no ambiguity when a claim is made.

Automatic acceptance, no health questionnaire

Where your scheme has at least 10 insured members, cover up to a set limit is automatic; no medical questionnaire below it, just a personal statement above it. You decide who's eligible and how much cover each person gets, and cover typically ends at 65 (though your schedule sets the exact age).

Why it matters: you can offer real cover to your whole team, including staff who might be declined or loaded if they applied individually, without running a health assessment for every person on the scheme.

Cover continues during unpaid leave

Cover can carry on through employer-approved unpaid leave, as long as premiums keep being paid (some plans require the insurer's consent). Some plans cap all unpaid leave, including parental leave, at 24 months. Others cap only non-parental leave (commonly 12 months, extendable to 24) while continuing parental leave automatically with no stated cap.

Why it matters: staff on leave, including new parents, don't lose protection at exactly the moment their family may need it most.

A leaver's continuation option

Many plans let a departing employee convert their group cover into a personal policy with no further medical underwriting, usually within a 45- or 60-day window depending on the plan.

Why it matters: this is a genuine retention and goodwill benefit. Staff who leave aren't left scrambling to requalify for cover elsewhere, which reflects well on you as an employer.

A stand-down period on new cover

A three-month stand-down commonly applies at the start of cover for listed serious conditions, including cancer, heart attack, and stroke—this is often reduced or waived when the scheme is replacing an existing employer policy.

Depending on the plan, this either delays cover for those conditions or permanently excludes a condition whose symptoms first appear in that window.

Why it matters: understanding this upfront helps you set accurate expectations with staff, especially during a scheme changeover.

How to get a free group trauma insurance quote for your team

Protecting your team from critical illness shouldn't mean weeks of paperwork or wading through insurer jargon. With Policywise, getting a quote is fast, effortless, and completely free.

Here's how it works: send through your company details, and Policywise does the heavy lifting. It includes comparing the market and coming back to you with a clear, one-page comparison summary and recommendation. From there, Policywise takes care of everything else, including all negotiation and communication with the insurer, so you don't have to.

No cost. No obligation. Just a clear picture of what's possible for your team.

Policywise typically needs five details for each employee:

• Name (optional)
• Date of birth
• Gender
• Salary
• Occupation.

Automatic acceptance is available once your scheme has at least 10 insured members. This means most teams qualify from the outset.

Why choose Policywise as your group critical illness insurance broker

The right broker can help you find the best value trauma cover for your business and employees. Policywise stands out as a trusted partner for businesses across New Zealand, offering expertise, personalised service, and a commitment to finding the best employee insurance solutions.

• Access to multiple insurers: Rather than limiting yourself to quotes from a single insurer, Policywise gives you access to a range of options from multiple insurers.
• You can compare different plans, benefits, and costs all in one place, ensuring the best possible cover at the most competitive price.
• Time-saving and hassle-free: Navigating the insurance market can be overwhelming. By working with Policywise, you’ll save time and avoid the hassle because we do the legwork for you, presenting a curated selection of options that meet your needs.
• Licenced and trusted: Policywise is fully licenced by the Financial Markets Authority (FMA), giving you peace of mind that you’re working with a reputable and trustworthy broker. Our transparent approach and commitment to ethical practices mean you can rely on us to act in your best interests.