AIA Trauma (Critical Illness) Insurance: A review

AIA NZ - a brief company overview

Helping make New Zealand “one of the healthiest and best-protected nations in the world.”

The AIA Group began selling insurance in 1919 - over a hundred years ago - in Shanghai, China. Expanding into the New Zealand market in 1981, AIA NZ enjoyed rapid, constant growth and can now count more than 800,000 Kiwi policyholders. AIA NZ paid out 93% of claims ($646.4 million) in 2022.

Backed by the Asia-Pacific AIA Group, one of the largest insurers in the world, AIA NZ knows that good health is invaluable. The company believes in “contributing to the wellbeing of people in every community” and encourages policyholders to take charge of their own health, too.

Policywise works with the full suite of AIA NZ’s products, including life, trauma, health, income protection, total permanent disablement, group, and business cover. In this review, we’ll take a closer look at AIA’s Trauma (Critical Illness) Insurance.

Features and benefits: AIA Living Critical Conditions vs Progressive Care

Increasing numbers of people in New Zealand are surviving illnesses that used to be fatal. 

AIA Trauma Insurance offers a lump sum payment to help you deal with the financial effects of a major illness or injury to you or a child. This cover includes protection for 50+ critical conditions, injuries and procedures, such as:

• Cancer
• Cardiovascular diseases
• Stroke
• Heart attack
• Dementia
• Alzheimer’s disease
• Meningitis
• Systemic sclerosis
• Coma
• Severe burns
• Diplegia
• Pacemaker insertion
• Permanent loss of hearing
• Permanent loss of speech
• Permanent loss of use of limbs
• Severe rheumatoid arthritis
• Severe illness or injury
• Advanced AIDS

AIA offers two primary types of trauma insurance: AIA Living Critical Conditions and AIA Living Progressive Care, covering up to $2,000,000. Here are some features and benefits for you to consider:

1. AIA LIVING CRITICAL CONDITIONS

Policyholders receive a one-time lump sum payment, or a partial payment upon the diagnosis of a specified range of well-defined medical conditions. Your Critical Conditions Cover will then end unless you elected to have it reinstated at the time you purchased the policy.

2. AIA LIVING PROGRESSIVE CARE

Offering a distinctively adaptable approach to insurance, AIA Progressive Care permits policyholders to make multiple claims based on the nature and gravity of their illness or injury. The value of the payment depends on the severity of your illness.

The table below shows a more detailed comparison of the benefits and cover of AIA’s Critical Conditions and Progressive Care plans.

Along with these products, AIA Vitality, a science-backed health and wellness programme, encourages healthy habits and rewards policyholders with premium savings and partner incentives. AIA Vitality may be conveniently linked to your AIA Trauma Insurance Cover.

A CLOSER LOOK AT SOME BENEFITS OFFERED BY AIA’S TRAUMA INSURANCE

1. Children’s Trauma Benefit

Offers trauma insurance for your children from three months old until they turn 21. Whatever amount is less than 50% of the sum guaranteed or $50,000 will be paid out if they suffer a covered condition (excluding pre-existing or congenital conditions). 

This benefit payment will not lower the existing value of the life assured’s trauma insurance. It is only given once to each child across all AIA plans and requires a 14-day survival time. 

2. Special Events Increase Facility

Allows you to increase the value of your cover after a major life event, such as having a baby, taking out a mortgage, receiving a pay rise, your child starting intermediate or high school, and more.

3. Financial and Legal Advice Benefit

Reimburses the cost of an AIA-approved financial or legal expert (to the value of $2,500 in fees, GST inclusive) during a full payment claim of the life assured. This is a one-time payment for every life guaranteed under all AIA policies.

4. Severe Illness or Injury Benefit

Of assistance if you suffer a serious sickness or injury that isn't listed in your policy but fits AIA’s definition of a severe illness or injury.

Please note: Terms and conditions, as well as exclusions, apply to all AIA 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.

AIA NZ offers more ways to strengthen your cover

• AIA Life Insurance: Ensures your loved ones receive financial protection in case of your unexpected passing. It provides a lump sum payment to support your family, settle debts, and cover living expenses.
• AIA Health Insurance: Offers comprehensive cover for medical expenses, providing financial security against unexpected health issues, including hospitalisation, surgeries, consultations, and prescribed medications.
• AIA Total Permanent Disablement Insurance: Offers financial support in the event of permanent disability, providing a lump sum payment to cover ongoing expenses, medical care, and lifestyle adjustments.
• AIA Income Protection Insurance: Ensures a regular income stream if you cannot work due to illness or injury, and supports daily living expenses, mortgage payments, and other financial commitments.
• AIA Mortgage Protection Insurance: Helps you with monthly mortgage payments or other bills if your income is severely affected by a medical condition or injury. 
• AIA Group Insurance: AIA can tailor their services to your company's needs, whether you're a small business with 10 employees or a large one with 10,000. AIA offers a competitive benefits package that will motivate your present staff and help you hire the best people.
• AIA Business and Rural Insurance: Supports the owners and key employees of businesses and rural enterprises during cases of critical illness and injury, helping ensure continuity and stability amidst uncertainties.

Do you need AIA Trauma Insurance in New Zealand?

AIA Trauma Insurance presents a valuable layer of financial protection for you and your family. The lump sum payment can cover various expenses, like medical treatments, specialised care, and necessary lifestyle changes, enabling you to prioritise your health and recovery.

Still wondering if critical illness insurance is worth it? Consider these figures and what trauma insurance offers: 

• 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. AIA Trauma Insurance, Total Permanent Disability, and Health Cover provide a strong financial backup for your family if 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%. AIA’s Critical Illness Cover and Mortgage Protection 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. AIA’s Trauma, 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 which resulted 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.