What is Trauma Insurance?
Trauma Insurance, also known as Critical Illness Insurance, is a vital financial tool for New Zealanders, offering a lump sum payment if you’re diagnosed with a serious illness or injury listed in your policy, such as cancer, heart attack, stroke, or major surgeries. Unlike Life Insurance, which supports your family after your passing, Trauma Insurance helps you while you’re alive, covering costs that Health Insurance may not, like lost income, daily expenses, or home modifications.
Trauma Insurance provides a lump sum payment (typically ranging from $50,000 to $2 million) upon diagnosis of a covered critical illness or injury. This payment can be used flexibly for:
Medical expenses not covered by public health or private Health Insurance
Lost income during recovery
Daily living costs, such as groceries, utilities, or childcare
Debt repayment, including mortgages or credit cards
Home modifications for accessibility
Alternative therapies or family support, like travel or holidays to aid recovery
Why Trauma Insurance Is Crucial in New Zealand
New Zealanders face significant health risks, with over 26,000 new cancer diagnoses each year and heart disease claiming a life every 90 minutes, according to the Ministry of Health.
Real-life stories underscore the need for Trauma Insurance:
Asha, a 26-year-old, suffered a severe stroke and now requires 24/7 care, struggling to relearn walking.
John, a fit 48-year-old non-smoker, was diagnosed with stage 4 lung cancer, facing $8,000 treatments every three weeks.
Andrew, 34, with stage 4 bowel cancer, relies on crowdfunding for non-Pharmac chemotherapy costing $1,775 fortnightly.
Without Trauma Insurance, many Kiwis face debt, deplete savings, or turn to crowdfunding.
Trauma Insurance provides a financial cushion, allowing you to focus on getting better and not the bills.
