Trauma insurance pays a lump sum upon diagnosis of a covered serious illness, which you can use for any purpose – treatment, mortgage payments, lifestyle changes, or recovery time. Traditional health insurance covers medical treatment costs like doctor visits, hospital stays, and procedures. Many people benefit from having both types of coverage for comprehensive protection.

This depends on your age, health history, and the amount of coverage you’re applying for. Many applications can be completed with health questionnaires only, while others may require medical exams, blood tests, or specialist reports. Higher coverage amounts and certain health conditions typically require more comprehensive medical underwriting.

A common guideline is 3-5 times your annual income, but the right amount depends on your debts, lifestyle, family circumstances, and financial goals. Consider your mortgage balance, other debts, income replacement needs, and potential treatment costs. Our team can help you calculate an appropriate coverage amount based on your specific circumstances.

Yes, trauma insurance payouts are generally tax-free in New Zealand. This means you receive the full benefit amount without any tax deductions. However, tax laws can change, and there may be exceptions in certain circumstances. We recommend confirming the current tax treatment with a tax advisor for your specific situation.