Trauma Insurance Explained: What It Covers and Why It Matters
Trauma cover (also known as critical illness insurance) provides a lump sum payment if you're diagnosed with a serious illness such as cancer, heart attack, or stroke.
What Does Trauma Insurance Cover?
While cover varies between providers, most policies include:
Cancer (many types)
Heart attack
Stroke
Major organ failure
Multiple sclerosis
Severe burns or head trauma
You don’t need to die or be permanently disabled to claim — just meet the policy’s medical definition.
Why It’s So Valuable
Trauma insurance gives you financial breathing space when you’re dealing with a major health shock. You can use the lump sum to:
Cover medical treatment (including private options)
Reduce or clear debt
Fund time off work to recover
Support your family
Real-Life Example
A 40-year-old parent diagnosed with breast cancer used her trauma payout to access treatment faster, take pressure off her partner, and focus on recovery instead of finances.
Do I Still Need Health Insurance?
Trauma cover and health insurance serve different roles. Health insurance pays providers directly for medical costs; trauma gives you cash to use however you need.
Sorting out insurance doesn’t have to be scary. We’re here to make it simple and tailored to you. Whether you're starting a family or simply want peace of mind, get in touch for a no-obligation chat.
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📩 support@legaseed.co.nz
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Legaseed NZ Ltd (FSP1005404) holds a licence issued by the Financial Markets Authority and provides financial advice in relation to financial & retirement planning, investments, KiwiSaver and personal risk insurance. Our disclosure information can be found on our website www.legaseed.co.nz, or is available on request and free of charge.
