TPD & Trauma Insurance Calculator

Trauma cover (also called Critical Illness) pays a lump sum if you're diagnosed with one of a defined list of serious conditions (cancer, heart attack, stroke, major surgery, etc.) — even if you fully recover. TPD (Total Permanent Disability) only pays if you become totally and permanently unable to work. Trauma is more commonly claimed; TPD is for catastrophic outcomes. Source: Financial Services Council NZ.

Stepped premiums start cheap (e.g. $40/mo at 35) but rise sharply with age (potentially $400+/mo at 60). Level premiums start ~65% more expensive but stay flat for life. If you plan to hold the policy 10+ years, level premiums often cost less over the lifetime of the policy. Run the numbers carefully. Source: Partners Life, AIA.

No — KiwiSaver is purely a retirement savings scheme. It doesn't include life, TPD, or trauma insurance. These must be bought as separate policies through life insurance providers (Partners Life, AIA, Asteron, Cigna, Fidelity). However, some KiwiSaver schemes offer 'bolt-on' insurance as an optional add-on (e.g. AMP Lifestages with optional Group Life cover) — premiums deducted from your KS contributions. Generally cheaper than retail policies but with less flexibility (fixed cover amounts, limited claim definitions). A 'salary sacrifice' strategy can route some of your pre-tax income to insurance via your employer's group scheme. Source: Financial Services Council NZ.

TPD (Total Permanent Disability) pays a lump sum if you become totally and permanently unable to work in your usual or any reasonable occupation. Common qualifying conditions: severe stroke with paralysis, advanced multiple sclerosis, terminal cancer, severe brain injury, blindness. Definition matters: 'Own Occupation' TPD (most generous) vs 'Any Occupation' (cheaper, narrower). Trauma pays on diagnosis of a specified condition, even if you fully recover. Standard NZ Trauma policies cover 40+ conditions including: heart attack, stroke, cancer, major organ transplant, paralysis, blindness, deafness, coronary bypass, kidney failure, severe burns, motor neurone disease, Parkinson's, Alzheimer's, Huntington's, MS, ALS. Some policies extend to coverage for children's trauma at no extra cost. Source: Partners Life + AIA NZ product disclosure.