Trauma Insurance

Best trauma (critical illness) insurance companies in NZ (2026)

What is trauma (critical illness) insurance and how does it work?

Trauma insurance (also called critical illness cover) pays out a benefit if you suffer a covered critical illness or injury. The payout can help you:

• Manage recovery and home care costs
• Pay for private medical and surgical costs, non-Pharmac-funded drugs, and other significant health expenses that ACC can’t cover
• Replace lost income if you can’t work or a family member stops working to be your full-time carer
• Avoid draining your savings, losing assets, or getting into debt when facing a serious, long-term health challenge.

Cover limits

Maximum sums insured vary across providers. Some plans allow cover of up to $2 million or $3 million. If you’re an entrepreneur or company owner looking for higher cover, Policywise advisers can help you compare insurance solutions for business owners.

Age eligibility

Minimum and maximum entry ages vary by plan. Some policies allow cover for newborns and young children, while others from age 16. Maximum entry ages typically range from 65 to 70.

Payment types

Insurers provide two types of trauma insurance payments: one-off lump sums or multiple payments.

One-off lump sum payments

The insurer pays you a lump sum if you suffer a covered illness or injury. Depending on your medical condition, this lump sum payment can be equivalent to your full trauma cover, or a partial amount.

Several plans give you the option to reinstate or buy back your trauma cover within a specific period after you make a claim. This option ensures you continue to be covered for new illnesses and injuries. 

Multiple payments

These trauma insurance payment plans provide ongoing protection, allowing you to file multiple claims if you suffer several unrelated medical conditions. For example, you can get a benefit if you suffer a stroke, and another lump sum if you’re diagnosed with an unrelated condition, such as cancer.

Want more information on these trauma cover payment options? Click here to schedule a call and one of our Policywise advisers will contact you to explain things further.

What are my options for buying critical illness insurance in New Zealand?

Depending on your needs and budget, you have several options for purchasing critical illness insurance. 

1. Accelerated trauma cover

This option links trauma cover to your life insurance policy, meaning if you claim for a covered condition, your life cover is reduced by your trauma claim amount.

• Pro: You are covered for both critical illness and death, offering broader protection for you and your loved ones.
• Con: Your loved ones will receive a lower life insurance payout if you pass away after you’ve made a trauma insurance claim. 

If you want to be able to reinstate your life cover in case of a trauma claim, consider adding a life cover buy-back or reinstatement benefit to your policy. 

2. Standalone trauma cover

This is a dedicated policy that provides a lump sum payout if you are diagnosed with a covered critical illness or injury. 

• Pro: It does not affect your life insurance cover amount, meaning your family can still receive the full life insurance payout if you pass away.
• Con: Standalone trauma cover does not pay out on death. If providing a lump sum to your loved ones when you die is important, you’ll need a separate life insurance policy alongside it.

3. Convert group trauma to individual cover

If you have trauma insurance through your employer, you may lose this cover if you leave your job. Some insurers allow you to convert your group trauma cover to an individual policy, ensuring you remain protected. 

4. Options to make multiple claims

Some trauma insurance plans pay out only once, and your policy ends after you’ve made a claim. This leaves you without any cover in case you suffer another serious illness or injury. 

To ensure ongoing protection, consider:

• adding continuous trauma or a trauma buy-back benefit to your policy, which reinstates your trauma cover if you make a claim, or
• buying multi-cover or progressive trauma insurance products, which are specifically designed to provide lump sum payments for multiple critical conditions.

Who should get trauma insurance? Am I too young to need it?

Severe disease or disability can devastate your family and wreck your finances. And as the examples below show, these critical events could happen to you at any time.

• In 2006, 26-year-old Asha had a severe stroke that left her a quadriplegic, only months after finishing her degree and starting her career. Through years of courageous effort, she has regained some ability to speak and move her right hand, but has been unable to work.
• Andrew was just 34 when he was diagnosed with stage 4 bowel cancer. He needed to find an additional $1,775 each fortnight, and relied on a crowdfunding platform to pay for the administration of non-Pharmac-funded chemo drugs. He passed away after a two-year battle with cancer.
• John, a healthy, non-smoking runner and father of two, was 48 when he received a stage 4 lung cancer diagnosis in 2013. In 2014, after standard treatments failed, his cancer responded to a breakthrough medication not available in New Zealand at the time. 
• Christine, a mother of two, was 49 when she was diagnosed with stage 4 lung cancer in 2017. Health insurance enabled fast access to private radiation therapy which, along with other treatments, including compassionate access to unfunded drugs, helped give her more time with her loved ones before she passed away in 2022.

Health New Zealand’s 2022 data showed that 26% of the 28,492 new cancer registrations and 13% of 10,538 cancer deaths were among those 59 years old or below. Heart disease rates are also high with one New Zealander dying every 90 minutes from this illness. 

Not sure if trauma insurance is worth getting? Ask yourself:

• What would happen financially if I had to stop working for months - or longer?
• Could my household cope with medical costs and everyday living expenses if I, my partner, or my child became critically ill?
• Do I have enough savings to replace lost income and cover ongoing commitments?

If these questions raise concerns, trauma cover may be worth exploring. Book a callback with a  Policywise adviser who can help you work out the right type and level of trauma cover for your situation, so you’re not over- or under-insured.

What conditions and illnesses does trauma insurance cover?

Covered serious illnesses and medical conditions vary across plans, but they typically include:

• Cancer: One of the most commonly claimed conditions, including breast, bowel, and lung cancer
• Heart conditions and procedures: Heart attack, coronary artery bypass surgery, and other major cardiovascular issues
• Neurological conditions: Stroke (a leading cause of disability in New Zealand, often requiring long-term rehabilitation), Parkinson’s disease, Alzheimer’s disease and other dementias, multiple sclerosis, and motor neurone disease
• Other conditions: Chronic organ failure (kidney, liver, or lungs), organ transplant, terminal illness, loss of limb, blindness, and severe rheumatoid arthritis.

Trauma cover features and benefits

Aside from providing full or partial lump sums if you suffer a covered condition, trauma insurance also provides additional benefits that can help you and your family during a health crisis.

These are either built-in policy benefits, or optional add-ons which may increase your premium. 

Best trauma insurance companies in New Zealand (2026)

AIA

Helping make New Zealand “one of the healthiest and best-protected nations in the world.”

The AIA Group began selling insurance in 1919 - over a hundred years ago - in Shanghai, China. Expanding into the New Zealand market in 1981, AIA NZ enjoyed rapid, constant growth, and now protects nearly 800,000 Kiwis.

In 2024, AIA NZ paid out 92% of claims ($829.6 million). Trauma insurance claims ($139.5 million) accounted for 16.8%, of which 59% went to claims for cancer and 16%, 11%, and 8% to heart, neurological, and musculoskeletal-related claims, respectively.

AIA trauma insurance offers flexible cover through three primary products:

• Critical Conditions - a comprehensive cover providing a lump sum if you suffer a defined medical condition
• Progressive Care - offers multiple payments based on the severity of your condition across key health categories
• Severe Trauma - a more cost-effective option focusing only on the most serious conditions.

Key built-in benefits include: 

• Trauma benefit (up to $2 million, depending on the chosen plan and the insured’s age)
• Children’s trauma benefit
• Return home support if diagnosed overseas
• Financial and legal advice benefits
• Special events increase facility
• Counselling benefit.

Depending on your chosen plan, you can enhance your protection with optional benefits, such as Specialist and Testing Support or Specified Accidental Injury Cover. You can also add AIA Vitality, a health-and-reward programme that offers premium discounts and rewards for healthy habits.

To learn more, read our AIA Critical Illness Insurance review or talk to a Policywise adviser.

Asteron Life

“We’re in this for life.”

As winners of the ANZIIF Life Insurance Company of the Year award in 2021, 2023, and 2024, Asteron Life has consistently shown commitment to supporting members through life’s toughest moments. With roots dating back to 1878, Asteron Life has over 140 years of experience helping New Zealanders protect what matters most.

Financial confidence in the company is also strong. Fitch Ratings recently lifted Asteron Life’s rating from A to A+, following Nippon Life’s acquisition of Resolution Life (Asteron Life’s parent company). With the backing of Nippon, one of the world’s largest and most established life insurers, Asteron Life is well positioned to continue providing reliable, long-term protection for New Zealanders.

From 1 July 2023 to 30 June 2024, Asteron Life paid out 97% of claims, totalling $112 million. Around 30% of this amount ($34.1 million) went to trauma policy payments.

Asteron Life offers Trauma Recovery Insurance, a flexible solution that can be structured as standalone cover or linked to your life insurance. It pays a lump sum if you’re diagnosed with a covered condition, helping fund long-term recovery, unfunded treatments, in-home care, home modifications, and everyday expenses.

Core cover includes:

• Trauma Recovery benefit for 40+ medical conditions
• Partial payouts for early stage cancers
• Financial and legal advice benefit
• Grief support benefit.

Optional enhancements:

• Early Trauma - partial payouts for additional or less severe medical conditions
• Major Trauma - additional financial support for serious events
• Continuous Trauma - immediately restores your trauma sum insured after a claim, allowing you to claim for up to three different trauma events
• Free Kids Cover - $50,000 trauma insurance per child, with an option to increase the cover amount.

The maximum trauma cover is $2 million. Cover is generally available from mid-teens through to later working ages.

To learn more, read our Asteron Life Trauma Recovery Insurance review or schedule a callback with a Policywise adviser.

Chubb Life NZ

“Our life insurance cover will let you live your life to the fullest.”

One hundred years of keeping New Zealanders financially secure in times of stress is no small feat, but it’s a service that Chubb Life NZ has down pat.

Known historically as the world's largest publicly traded property and casualty insurer, Chubb continues to forge ahead after purchasing century-old Cigna NZ in 2022. This strategic move underlined Chubb's commitment to expanding and enhancing its menu of services in the New Zealand market.

Chubb now offers top-notch insurance products to Kiwi individuals, families, and businesses, coupled with a claim service branded as sheer “craftsmanship.”

In 2024, Chubb paid out 96% of claims. Top conditions claimed under its trauma cover were cancer (63%), heart (21%), neurological (7%), other organs (5%), and accidents (2%).

Chubb’s trauma insurance provides lump sum payments when you’re diagnosed with a covered critical illness or condition. You can choose between:

• Trauma Cover - comprehensive cover on a wide range of serious conditions
• Moderate Trauma Cover - a more affordable alternative with higher severity thresholds and stricter claim criteria for some conditions.

Built-in benefits include:

• Full trauma benefit
• Diagnosis benefit
• Partial benefit (Trauma Cover only)
• Complimentary cover for children and newborns
• Financial/legal advice reimbursement
• Return-home and support-person travel benefits.

Optional benefits include:

• Continuous Trauma Benefit - allows you to make multiple trauma claims (up to four times the full sum insured), with cover automatically continuing after each unrelated claim. You can claim again immediately for an unrelated condition, while repeat claims for the same condition group may be subject to stand-down periods.
• Additional children’s cover.

You can insure up to $2 million in combined trauma and moderate trauma cover. Minimum and maximum entry ages are 16 and 70 years, respectively.

To learn more, read our Chubb Critical Illness Insurance review or speak with a Policywise adviser.

Fidelity Life

“50 years of looking after New Zealanders.”

Beginning as a family-owned business in 1973, Fidelity Life has evolved into one of New Zealand’s most responsive and agile insurance companies, protecting the lives of over 300,000 members and paying out $1.4 billion in claims over 50 years.

With the backing of local shareholders NZ Super Fund and Ngāi Tahu Holdings, and its acquisition of Westpac Life in 2022, Fidelity Life continues to strengthen its footprint and long-term commitment to the New Zealand insurance industry.

From 1 July 2024 to 30 June 2025, Fidelity Life paid 93% of claims, amounting to $247.7 million. Of this, over 20% ($50.8 million) went to trauma insurance claims. The top conditions claimed for were cancer (58%), cardiovascular conditions (18%), and neurological conditions (14%).

Fidelity Life’s trauma products include Trauma Cover (single payout) and Trauma Multi Cover, which lets you claim for up to five unrelated medical conditions. 

Key features and built-in benefits:

• Cover for 40+ serious medical conditions with full or partial payouts
• Complimentary child trauma cover for those aged 3 months-20 years
• Relocation support if you’ve been living overseas for over three months
• Financial planning and legal advice benefit.

You can insure up to $2 million standalone or as part of your life cover. Entry ages are 16-64 (standalone) or 69 (if linked to your life insurance).

To learn more, read our Fidelity Life’s Trauma Cover review or talk to a Policywise adviser.

nib NZ

nib New Zealand is part of nib Group, one of Australasia’s largest and fastest-growing providers of health, travel, and life insurance. Originally established in 1952 as a hospital fund for steelworkers in New South Wales, the company has since expanded significantly, entering the New Zealand market via the acquisition of Tower Medical Insurance Limited in 2012 and OnePath’s medical portfolio in 2015. 

Today, nib Group supports over 1.9 million residents, students, and workers across Australia and New Zealand with a range of accessible, affordable insurance options. Its New Zealand arm continues to strengthen, acquiring Kiwi Insurance Limited in 2022 and launching new competitive insurance solutions (Ultimate Life & Living) in 2025. 

Financially, nib NZ remains solid, with an A (Strong) financial strength rating from S&P Global Ratings. In the first half of fiscal year 2025, nib NZ paid $159.7 million in claims.

nib’s Ultimate Trauma Insurance protects you with a one-off payout on diagnosis of a covered trauma condition, either as standalone cover or as an accelerated benefit attached to your life insurance.

Included benefits:

• Full payout on first diagnosis of a covered condition
• Partial payout for specific trauma conditions
• Children’s trauma benefit 
• Newborn children’s benefit
• Financial/legal advice and counselling benefits
• Support-person travel and accommodation.

Optional add-ons include:

• Early cancer benefit
• Trauma and multi-trauma cover buy-back options.

You can secure up to $750,000 of trauma cover, with entry ages ranging from 16 to 70. 

To learn more, read our nib Ultimate Trauma Insurance review or talk to a Policywise adviser.

Partners Life

“We're an industry leader that Kiwis trust.”

Partners Life began as a New Zealand start-up company in 2011. Since then, it’s grown to become one of New Zealand’s most trusted health, life, and business insurance providers, protecting over 340,000 Kiwis and paying over $1.6 billion claims. 

Partners Life received the ANZIIF Life Insurance Company of the Year award for 2022, recognising a strong dedication to clients and an ongoing pursuit of better solutions. Since its inception, the company has also consistently achieved the Lewers Research five-star approval rating (Lewers Survey), indicating Partners Life’s total commitment to customer service.

From 1 April 2024 to 31 March 2025, Partners Life paid 95% of claims, totalling over $325 million. Trauma insurance claims accounted for about 24% ($78.8 million), with cancer, heart, and accident and injury accounting for 60%, 20%, and 9% of claims, respectively.

Partners Life provides three core trauma products: 

• Trauma Cover for broad condition protection
• Moderate Trauma Cover for specified moderate severity events
• Severe Trauma Cover for the most serious illnesses and injuries.

Built-in benefits may include: 

• Full or partial lump sum payments if you suffer a covered condition
• Children’s cover
• Return-to-home support
• Support person accommodation and transport costs
• Financial/legal advice and counselling reimbursements
• Conversion to other trauma cover types.

Optional benefits may include:

• Early partial payment upon diagnosis of specific conditions
• Cover buy-back options.

Partners Life trauma cover can be taken as standalone or accelerated (linked to life cover). The maximum entry age is 70 years old, with cover amounts up to $3 million. Higher sum insured options are available to those taking a business insurance plan.

To learn more, read our Partners Life Trauma Cover review or talk to a Policywise adviser.

Why compare trauma insurance plans through Policywise

• Going directly to one insurer limits you to their products, even though another provider may offer a more suitable trauma insurance cover at a similar cost. Policywise advisers compare trauma insurance quotes across leading New Zealand insurers, helping you find better value and more tailored protection.
• We partner only with trusted trauma insurers: AIA, Asteron Life, Chubb Life, Fidelity Life, nib, and Partners Life.
• We simplify complex policy wording and help you determine how much trauma cover you actually need, based on your goals, budget, and wider financial plan. 
• If you ever have to make a claim, Policywise can help manage the paperwork and liaise with the insurer on your behalf, removing stress at an already difficult time.
• You get personalised advice and comparisons, 100% free.

How much does trauma insurance/critical illness cover cost? 2026 sample quotes

A number of factors will impact your premiums, such as:

• Age
• Gender
• Amount of cover
• Medical history
• Smoking status
• Policy structure (standalone or accelerated cover)
• Premium type (stepped or level)
• Optional benefits you’ve selected.