Trauma cover
A lump sum paid on diagnosis of one of the defined trauma conditions (e.g. major cancer, heart attack, stroke).
Definition
Trauma cover (also called critical illness or living assurance) pays a lump sum on diagnosis of a defined event. Each insurer publishes a list of covered conditions and stage definitions — NZ insurers vary materially on what they cover and at what severity threshold. The trauma definitions list is the single most consequential difference between products in this category.
See also
- Stand-alone trauma — A trauma policy independent of life cover — a paid trauma claim does not reduce the life benefit.
- Accelerated trauma — A trauma cover bundled with life cover, where a paid trauma claim reduces the life sum insured.
Not personalised financial advice. Definitions are editorial framings of how the term is used across NZ life cover. Your specific policy wording is the authoritative source.