A review of Fidelity Life Trauma Cover (Critical Illness Insurance)

Fidelity Life Insurance - a brief company overview

“50 years of looking after New Zealanders.”

Beginning as a family-owned business in 1973, Fidelity Life Insurance has evolved into one of New Zealand’s most responsive and agile companies, paying out $1.5B in claims over 50 years. In the last financial year (July 2022 to June 2023), the company’s total paid-out claims reached $149.2 million.

• Of this amount, $29.1 million went to trauma insurance claims.
• The youngest claim was for a 2-year-old; the oldest: 82 years old. 
• The top 3 conditions among trauma cover claimants were cancer (56%), cardiovascular conditions (24%), and neurological conditions (13%).

Fidelity Life is in the game of knowing that life doesn’t always go according to plan and that situations can change dramatically. So the company structures their core policy offerings to meet your circumstances head-on - a big relief for Kiwis in strife.

Protecting the lives of around 375,000 members is a challenging task, but Fidelity is well placed to continue this vital role, future forward. The backing of local shareholders, NZ Super Fund and Ngāi Tahu Holdings, means Fidelity remains buoyant, NZ-centric, and fully committed to supplying relevant, affordable insurance options to Kiwis like you.

Policywise works with the full suite of Fidelity products, including life, trauma, income protection, total and permanent disability, mortgage repayment cover, and group insurance. In this Fidelity Life trauma insurance review, we’ll look at their critical illness cover in detail.

Fidelity Life Trauma Cover: Features and benefits

Fidelity Life Trauma Cover offers specialised cover for 40+ serious medical conditions or illnesses. If a covered condition is diagnosed, Fidelity Life pays out a full or partial lump sum to assist with various costs associated with the illness. These costs may include medical treatment, rehabilitation, mortgage payments, debt reduction, or taking time off work to focus on recovery. This ensures that policyholders can prioritise recovery, health, and wellbeing without worrying about their finances.

COVER FOR 40+ MEDICAL CONDITIONS

Fidelity Life offers cover for more than 40 trauma conditions, such as:

• Cancer
• Heart attack
• Stroke
• Out of hospital cardiac arrest
• Heart valve surgery
• Coronary artery bypass surgery
• Open heart surgery
• Loss of limbs
• Loss of speech
• Alzheimer’s disease
• Dementia
• Severe diabetes
• Severe inflammatory bowel disease
• Intensive care
• Major organ transplant.

For some conditions, cover starts three months after your policy application, meaning that you have a waiting period of three months before you can make a claim.

MAXIMUM COVER

Fidelity Life allows you to obtain a maximum trauma cover of up to $2 million, providing significant financial protection. This can help you and your loved ones deal with the aftermath (and future impact) of a traumatic event.

AGE ELIGIBILITY

Fidelity Life Trauma Cover is available to individuals aged 16 to 64. If you already have a life insurance policy with Fidelity Life, such as Life Cover, you can add trauma cover up to the age of 69.

CHILD COVER 

Fidelity Life's Trauma Insurance includes free cover for children aged 2 to 20. If they experience one of the eligible trauma conditions, a payment for a percentage of your cover is provided, without reducing the parent's sum insured.

INCREASED COVER

Life milestones, such as marriage, having a child, receiving a pay rise, or increasing a mortgage, often necessitate increased cover. Fidelity Life allows you to enhance your cover during these times without requiring additional medical information.

RELOCATION BENEFIT 

This benefit covers your and your support person’s economy flight back to New Zealand (up to $10,000) if you've lived abroad for more than three months and your trauma claim is accepted.

FINANCIAL PLANNING SUPPORT 

Large lump sum payments can be overwhelming to manage. To help you navigate your finances effectively, if you receive a payment of at least $100,000, Fidelity Life will reimburse up to $2,500 for a comprehensive financial plan prepared by a qualified adviser.  

STAND ALONE OR ADVANCED PAYMENT 

Fidelity Life Trauma Cover can be purchased independently or as an advanced payment deducted from your Fidelity Life Cover. This means that you can purchase trauma cover separately or add it to your existing life insurance policy.

PAYMENT FLEXIBILITY

You can choose how you wish to pay your premiums – either a fixed price for the policy’s duration or payments that increase annually. This flexibility allows you to settle on a payment plan that best suits your financial situation.

Please note: Terms and conditions, as well as exclusions, apply to all Fidelity Life products. It's important to review your policy carefully to understand the specific terms of cover, benefits, and any limitations. This ensures that you have a clear understanding of the protection provided by each product. If you have any questions or would like some help finding the right policy, book a callback with a Policywise adviser; it's fast and free.

Fidelity Life offers more ways to strengthen your cover

Fidelity Life offers more than just trauma insurance, so you and your family can rest assured that you are prepared for life’s uncertainties. 

• Fidelity Life Life Insurance Cover: Provides a lump sum payment in the event of your passing or terminal illness diagnosis, offering crucial financial support during difficult times.
• Fidelity Life Income Protection Cover: Ensures that you continue to receive a regular income in case you cannot work due to illness or injury, helping maintain your financial stability and cover everyday expenses.
• Fidelity Life Monthly Mortgage Repayment Cover: Helps you meet your monthly mortgage payments if you become disabled or critically ill.
• Fidelity Life Total and Permanent Disability Cover: In the unfortunate event of a total and permanent disability, this insurance provides a lump sum payment, offering financial support to help you adapt to a different way of life.
• Fidelity Life Survivor's Income Cover: Offers ongoing financial support to your partner or dependants if you pass away, providing them with regular income to cover daily expenses and maintain their quality of life.
• Fidelity Life Business Cover: Covers the vital expenses of running your business if you or a key staff member are unable to work due to a policy-defined illness, injury, disability, or death. 
• Fidelity Life Group Cover: Covers your employees against the risk of illness, accidental death, permanent disability, loss of income (up to 75%), or injury with either a lump sum payment or monthly benefit.

Do you need Fidelity Life Trauma Insurance in New Zealand?

Fidelity Life’s Trauma Cover provides essential financial backing in the event of a traumatic occurrence or policy-defined severe illness diagnosis. Offering a lump sum payment, trauma insurance can be used for major expenses, such as medical treatments, specialised care, living costs, and necessary lifestyle adjustments.

Here are more reasons to invest in trauma cover:

• Financial security: Of 2.8 million employed Kiwis in the March 2022 quarter, 44,200 were away from work for a full week because of sickness, illness, or injury. Fidelity Life’s Trauma Insurance and Disability Cover provide strong financial backup for your family in the event you need to stop working temporarily or permanently.
• Debt protection: Home loan rates in New Zealand have been volatile since Covid-19 struck in 2020, rising from lows near 2% to more than 7%. Fidelity Life’s Trauma Cover and Mortgage Repayment Cover can help pay debts, rents, mortgages, and loans, relieving your loved ones from the burden.
• Income replacement: The cost of living in New Zealand rose by 7.0% in the 12 months to the December 2023 quarter. Fidelity Life’s Trauma, Income Protection, Disability, or Life Cover can help replace the financial input of the policyholder, enabling your family to maintain a similar lifestyle and keep paying the bills.
• Peace of mind: From June 2022 to May 2023, Kiwis sustained approximately 35,805 injuries, resulting in more than a week away from work. Knowing your loved ones are financially secure while you are off work offers invaluable peace of mind.

Policywise: Your trusted insurance adviser

Policywise is a 100% free service which tells you which health, life, and disability insurance provider best fits your needs. We offer fast, comprehensive, and easy-to-understand comparisons of all leading providers, and a simple summary clearly recommending which insurer is best for your situation.

Not all insurance policies are the same. Policywise can help you sort out the duds, avoid the lemons, understand the fine print and exclusions, and get the right insurance for you and your family.

We make the important decision of where to buy your insurance super easy. We’ll answer your questions, provide experienced advice, quotes, and comparisons, and manage all the back and forth throughout the application process. Taking out your cover through us means you'll have our lifetime support and claims advocacy, and we'll help you negotiate a positive outcome at claim time. We can also take care of lodging any claims on your behalf and back you up if the going gets tough.

Check out the reviews on our homepage for how other New Zealanders have found our service, because now is the time to get your trauma recovery insurance sorted. Give your family or someone you love the most outstanding financial support possible. Book a 5-minute callback with Policywise today; our service is fast and free.

Disclaimer: All information on this page or website is general information only, not intended as advice, and does not take into consideration your personal circumstances. We recommend consulting a Policywise adviser before making any insurance decision.

Please note: Policywise advisers are licensed by the Financial Markets Authority to provide financial advice in relation to health insurance, life insurance, and disability insurance. You can learn more about this on our Public Disclosure page. All insurance covers are subject to the insurer’s approval of your application. 

Insurance policies and their built-in and optional benefits may be subject to stand-down periods, exclusions, terms and conditions, and premium loadings not listed on this website. Optional benefits also have additional premiums. Please refer to the insurance product’s policy document for full details. Insurers may alter these details at any time. 

Therefore, nothing in our product pages is intended to be definitive or binding. Where there are discrepancies between any policy wording on this website and the policy wording provided by the insurance company at the time your cover is approved, then the insurance company’s wording will be deemed the correct version.