Trauma insurance

Trauma insurance

Trauma cover should be a key component of a most peoples' insurance portfolios. This cover pays you a lump sum if you suffer from one of a number or specified trauma conditions such as heart attack, cancer, or stroke. Money at this time can help cover treatment and rehabilitation costs, replace lost income, or allow a support person to take time off work to help with recovery.

The trauma insurance space is becoming increasingly complex, as companies compete vigorously to offer better cover than their rivals. It is vital that you have advisers who have an excellent knowledge of the various complex trauma products available, and who only work with the very best insurers in the marketplace. Ron and Paul use independent product research to ensure that they offer impartial advice, and recommend the best cover for your particular requirements.

You can find out more about the various trauma insurance products we can source from our preferred suppliers below, including a sample of the product research we use when assessing product quality.

We have also included an interview with Dr Marius Barnard, in which he explains what led him to develop trauma cover.




Frequently Asked Questions

  • Isn't trauma cover expensive?
    As a rule of thumb, the cost for a given sum of trauma cover is roughly twice that of the same amount of life cover. This cost reflects the fact that you are more likely to experience a trauma event and live, than you are to die from that same event.
  • Why are my trauma premiums increasing so rapidly?
    Insurance companies are constantly refining their products so that they can retain a competitive edge over their rivals. Better products mean a higher likelihood of successfully claiming, which in turn puts upwards pressure on pricing. This trend is set to continue, meaning you can expect even greater premium increases for your trauma cover in the future.
  • Can I get Level Premium trauma cover?
    Yes. We strongly recommend that clients have at least some of their trauma cover on Level Premium. Constant product enhancements are putting upwards pressure on trauma insurance premiums, giving you a very good reason to lock in your Level Premium cover today.
  • How much can I save with Level Premium trauma cover?
    To give just one example, a 45-year-old female who implements $50,000 of level premium trauma cover will save around $20,000 through to age 70. She will pay around $50 per month for her cover. If she instead elected to pay by stepped premium, that level of cover would be costing around $375 per month by the time she is 70.
  • When was trauma cover invented?
    Ok, this isn't really a question we have ever been asked, but it is an interesting story. Unlike life insurance, which has been around in its modern form since the early 18th Century, trauma insurance is a relatively recent development.

    Trauma (or "critical illness") cover was originally invented by pioneering South African surgeon Marius Barnard. Dr Barnard noticed that those patients who were not under financial pressure had a much better recovery rate than those who had to return to work prematurely to make ends meet. Dr Barnard invented a simple Critical Illness cover, which paid a lump sum if the patient suffered from one of a handful of major trauma conditions. The first trauma insurance policy was launched on 6th October 1983, and was called "Dread Disease Insurance."

    While many of the NZ banks still offer these simple products, the mainstream insurers we choose to deal with offer far superior products. They cover a far greater number of conditions and - most importantly - pay out when you really need it.