TPD & Trauma Insurance Calculator
Estimate annual premiums for TPD (Total Permanent Disability) and Trauma (critical illness) insurance in NZ. Stepped vs level premium comparison.
About this calculator
This calculator implements NZ life insurance market premium rate cards (TPD + Trauma) from Partners Life, AIA, Asteron. Last consulted 18 May 2026. Verify the figures yourself by following the link.
NZ TPD & Trauma insurance market
Indicative premium rates 2026- •Trauma cover lump sum (typical): $100,000-300,000
- •TPD cover lump sum (typical): $200,000-600,000
- •Trauma covered conditions: 40+ (cancer, heart attack, stroke...)
- •Stepped premium rise (35→55): ~5× over 20 years
- •Level premium loading: +65% vs stepped initially
- •Major NZ providers: Partners Life, AIA, Asteron, Cigna
Source: Financial Services Council NZ
Disclaimer
This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available IRD data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
How NZ TPD & Trauma premiums are priced
Premium = (cover ÷ $100k) × age-band rate × smoker loading × structure loading.
- 1
Base rate from table
Base = TPD_or_Trauma_rate[age_band, gender] per $100k cover
Trauma is ~2× TPD at same age (more frequent claims).
- 2
Smoker loading
Loading_smoker = ×2.1 if smoker, else ×1.0
Material — declare honestly.
- 3
Premium structure
Loading_level = ×1.65 if level premium, else ×1.0 (stepped)
Stepped starts cheaper but rises ~5× by age 55.
- 4
Annual premium
Annual = (cover ÷ 100,000) × base × loadings × 12
Real underwriting may apply further loadings/exclusions for health.
Worked example
Inputs: Trauma $200k, 35-39 male, non-smoker, stepped
Result: Rate $330/$100k × 2 = $660/yr stepped. ~$55/mo.
Frequently Asked Questions
What's the difference between TPD and Trauma insurance?
Should I get stepped or level premiums?
Can I buy TPD or Trauma cover through KiwiSaver?
What conditions qualify as TPD vs Trauma in NZ?
The TPD and trauma insurance calculator estimates NZ premiums for Total Permanent Disability and Trauma (critical illness) cover by age band, gender, smoker status, and premium structure — the lump-sum policies that pay out on diagnosis rather than death.
How this calculator works
Trauma cover pays a lump sum on diagnosis of a listed serious condition — most NZ policies cover 40+ including cancer, heart attack, and stroke — while TPD pays if you become totally and permanently unable to work. Premiums are quoted per $100,000 of cover from age-band tables; trauma costs roughly twice TPD at the same age because claims are far more frequent. Two multipliers matter most. Smoking roughly doubles the premium. Premium structure is the strategic choice: stepped premiums start cheap and rise every year — typically five-fold between 35 and 55 — while level premiums start about 65% higher but stay flat, usually crossing over within 10-15 years. The calculator prices both so you can see the crossover for your age. These policies complement rather than replace income protection: trauma pays a one-off sum for recovery costs and debt reduction regardless of whether you return to work.
NZ TPD and Trauma market parameters
| Typical trauma cover | $100,000 - $300,000 lump sum |
| Typical TPD cover | $200,000 - $600,000 lump sum |
| Trauma conditions covered | 40+ (cancer, heart attack, stroke...) |
| Indicative trauma rate (male 35-39) | ~$330/yr per $100k, stepped |
| Smoker loading | ~×2.1 |
| Level premium loading | ~×1.65 vs stepped initially |
| Stepped premium rise 35→55 | ~5× |
Indicative market rates; underwriting adjusts for health and occupation.
Worked Examples
Trauma cover of $200,000, male 35-39, non-smoker, stepped premiums
Premium ≈ $660/year (about $55/month) — but expect roughly 5× by age 55.
- Rate: ~$330 per $100,000 at 35-39
- Cover: $200,000 → 2 × $330 = $660/year
- Stepped structure: premium re-prices upward every birthday
Same cover on level premiums
≈ $1,089/year from day one — flat for life, typically cheaper overall if held past ~12 years.
- Stepped base: $660/year
- Level loading ×1.65: $660 × 1.65 ≈ $1,089/year
- Stepped reaches ≈ $3,300/year by age 55 (5×) while level stays ≈ $1,089
- Crossover typically inside 10-15 years — level wins for long-term holders
Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.
Last reviewed: