New announcement. Learn more


Health and trauma insurance: What’s the difference?

You’re likely familiar with health insurance, and you might have come across trauma insurance as well. But are you aware of the differences between the two?

Both are designed to provide support during times of illness, but they operate in different ways. Depending on your circumstances, having both could be advantageous. So, let’s delve into what sets them apart.

Health insurance

In New Zealand we have a free public health system, but there can be long wait times when needing diagnosis or treatment for what are considered non-urgent or non-life-threatening conditions. Health insurance can steps in to help cover the costs of diagnosis and treatments obtained through private healthcare providers.

If you haven’t managed to put away a substantial emergency fund for medical expenses, health insurance can be a valuable tool in those instances. Health insurance can allow you to access private specialists promptly for necessary diagnostics and procedures,avoiding the sometimes extensive waiting lists of the public system. 

Trauma insurance 

In contrast, trauma insurance provides a lump sum payout upon diagnosis of a specified health condition(s). These can include certain cancers, strokes, or terminal illnesses – among others outlined in your policy.

The lump sum payment gives you flexibility to utilise it for various purposes, such as covering your mortgage, treatments that are not covered by insurance, or replacing a portion of your income during the time you are unable to work, allowing you to focus on recovery.

Combining the two

These two insurance types respond differently even when covering the same condition. For example, you might use health insurance to cover the cost of surgery and then rely on trauma insurance to provide financial support during your recovery period. Depending on your specific needs, combining the two can help strengthen your safety net for robust protection and coverage. 

Like to learn more?

If you’d like to mitigate the financial impact of a serious health issue, health and trauma cover might be on your mind. Reach out to us for assistance in finding a solution that suits your specific needs. We’re here to help you navigate the complexities and make informed decisions about your insurance coverage.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.