About Trauma Cover
Trauma Insurance makes sure that your business is supported financially with a lump sum payment if you or a key team member are diagnosed with a covered serious medical condition.
Trauma Cover pays a lump sum if you suffer a specified condition such as a stroke, a heart attack, cancer or loss of a limb. If a physical trauma means you can’t work, or have to meet significant medical costs, you won’t have to suffer financial trauma too. The policy comes with some important benefits at no additional cost. You can also add one or more optional benefits for which you will pay an additional premium. This benefit is available either in conjunction with Life Assurance Cover (accelerated benefit), where a claim will reduce the life cover, or on its own (standalone benefit).
- Entry age is from age 16 to 64 (standalone) or 69 (accelerated).
- You are covered for your life (accelerated) or to age 70 (standalone).
Level of cover
- The maximum standalone cover is $2 million. If you choose the accelerated benefit, the maximum cover is the level of your life insurance to a maximum of $2 million.
- You can ‘inflation proof’ your cover by increasing it each year in line with the CPI.
- Angioplasty, aorta surgery, cancer, cerebrovascular accident (stroke), myocardial infarction (heart attack), coronary artery bypass surgery, heart valve surgery and out of hospital cardiac arrest are not covered if they occur within the first three months of the policy.
- Payable fortnightly, monthly, quarterly, half-yearly or yearly.
- Yearly renewable premiums are fixed for one year at a time and will normally increase in line with age.
- Level term premiums are fixed for the life of the policy.
- If you buy this cover as standalone then the cover ends with the payment of the benefit (except in the case of angioplasty to 1 or 2 vessels or a partial payment under a diagnosis benefit).
- If a claim is paid on an accelerated benefit, the claim amount will be deducted from the life cover of your policy.
- If a claim is paid on a standalone benefit, the payment will not reduce the life cover under the policy.
Life Cover buy-back
Following the payment of an accelerated trauma benefit you have the opportunity to “buy-back” the life cover amount paid, one-third every year for three years, without having to provide any evidence of insurability. After three years you will have your original level of life cover. You will pay the premiums appropriate to the level of cover. Refer to policy wording for details.
At no additional cost, all of your children (either by birth or legal adoption) aged between 2 and 20 (inclusive) years are covered for the lesser of $50,000 or 20% of the parent’s Trauma sum assured should they suffer for the first time after the cover starts one of the Trauma conditions. The child must survive for a period of 14 days. This can be converted up to 30 days before or after their 21st birthday to their own Life Assurance Cover with Trauma accelerated cover.
Financial planning benefit
If a benefit of at least $100,000 is paid, a further benefit of up to $2,500 may also be payable. We will reimburse the reasonable costs of a fully documented financial plan prepared by an Authorised Financial Adviser.
You can increase your Trauma cover without further medical evidence on the occurrence of certain events:
These events include getting married, civil union, having a child, taking out a mortgage, or the death of a spouse, partner or child, or stopping work to take full time physical care of a dependent relative. Refer to policy wordings for details. Not available with Level Term.
Relocation to New Zealand benefit
If you suffer from one of the trauma conditions while living overseas for more than three months, this benefit will pay an economy airfare up to a total of $10,000 for you and, where necessary, a support person to be flown directly back to New Zealand. This can be paid once during the period of cover.
You can convert your standalone cover to accelerated cover with a equal amount of life cover, before you turn 60. Refer to policy wording for details. Not available with Level Term.
Business future insurability option
This option allows you to increase cover as your business changes. No further medical evidence will be required though financial evidence may be required. Conditions apply. Refer to policy wording for details. Not available with Level Term or Mortgage Protection.
Life cover buy-back
Following the payment of an accelerated trauma benefit, you have the opportunity to buy back the life cover amount paid after one year without having to provide any health evidence. You will pay the premiums appropriate to the level of cover. The buy back option may be available after six months for certain events.
Waiver of Premium Cover
While the insured person with the Waiver of Premium Cover is totally disabled, the premiums due on the policy after the waiting period ends will be waived and premiums paid during the waiting period will be refunded.
Total and Permanent Disability extension
Provides financial protection against total and permanent disability with a lump sum payment.
Trauma Cover reinstatement option
This option allows you to reinstate trauma cover (standalone or accelerated) 12 months after a trauma claim. The reinstated trauma cover is restricted to new conditions (i.e. you cannot claim twice for the same condition) and any pre-existing conditions will be excluded. Other conditions also apply. A discount may apply on the reinstated cover.
Children’s Trauma Cover
The trauma cover can be taken out as a standalone cover up to $60,000 which includes the trauma conditions listed.
To ensure your benefit keeps pace with inflation, you can choose to have your policy cover increase each year by the greater of 2% or the Consumer Price Index, regardless of changes of the insured person’s health. Each year we will advise you of the increased sum assured and new premium. Where premiums are level and the indexation option has been selected, the sum assured will be increased by a fixed rate of 2% each year.
Allows the policy to continue with the same level of cover on a YRT basis at expiry of policy term or to take up another level term policy. Applies to Level Term only.
Note: All the above optional benefits require payment of an additional premium.
Trauma Cover Conditions
Accidentally acquired HIV
Adult onset insulin dependent diabetes mellitus#
Benign brain tumour
Cerebrovascular accident (stroke)*
Chronic liver failure
Chronic lung disease
Chronic renal (kidney) failure
Coronary artery bypass surgery*
Heart valve surgery*
Loss of independent existence
Loss of limbs and/or eyes#
Loss of speech
Major head trauma
Major organ transplant
Meningitis /meningococcal disease
Motor neurone disease
Myocardial infarction (heart attack)*
Open heart surgery
Out of hospital cardiac arrest*
Primary pulmonary hypertension
Severe rheumatoid arthritis#
* Three month stand-down from commencement applies.
# A partial advance payment of the Trauma Cover can apply to these conditions. This applies to some cancers.
Refer to the Policy Wording for full definitive details and conditions.
Disclaimer: This is a convenient summary of the key points of this insurance policy. It is not, and is not intended to be, a policy document. Details of definitions, benefits, standard exclusions/limitations, terms and conditions are contained in the official policy document which is available from your financial adviser. You should read the policy document carefully to make sure you understand exactly what cover is provided under each benefit. This document does not provide a personalised financial advice service.