Should I Keep Paying My Trauma Cover in My 50s?

Reaching your 50s can feel like a turning point; kids may be leaving home, retirement is on the horizon, and you may finally be thinking about slowing down. But with those changes also comes the inevitable question: do I really need to keep paying for trauma insurance?

It's a fair question, especially when your expenses may be shifting. But before you consider cancelling your trauma cover, it’s worth taking a closer look at the risks that come with age, and the real value trauma insurance continues to offer in your 50s and beyond.

What is trauma cover, again?

Trauma insurance (also known as critical illness cover) provides a lump-sum payment if you're diagnosed with a specified serious illness or injury, such as cancer, a heart attack, or a stroke. The payment can be used however you need, whether that’s to fund medical treatment, reduce debt, or give you space to recover without worrying about finances.

The 50s: A peak time for trauma claims

According to AIA's 2024 claims data, trauma claims from people aged 50 to 59 totalled a massive $49.19 million, more than any other age group. And the most common cause? Cancer - accounting for 59% of trauma claims in that age band.

What does that tell us? Illness isn’t just a concern for older people. In fact, your 50s may be one of the riskiest times for serious health events, especially as long-term lifestyle habits and genetic predispositions start to surface.

Why people consider cancelling

There are a few common reasons people consider dropping their trauma cover:

• Cost: Premiums can rise with age, and you may feel like your money could be better spent elsewhere.

• Improved health: If you're feeling fit and healthy, it might be tempting to bet on staying that way.

• Other financial priorities: Mortgage repayments, retirement savings, or supporting adult children can all compete for your income.

But any decision to cancel should be made with full awareness of the risks.

The true cost of serious illness

While ACC may help with injuries, it doesn’t cover most illnesses. And while public healthcare in New Zealand is generally good, it doesn’t always provide timely access to specialists or newer treatments, especially for non-urgent cancers or complex conditions. Private treatment can be expensive, and that’s where a trauma payout can make a real difference.

Keep in mind that trauma cover isn't just about survival, it's about maintaining quality of life while you recover. Even if you have health insurance, it might not cover all costs or lost income, and that’s where trauma insurance fills the gap.

Should you reduce cover instead?

If your budget’s tight but you're nervous about cancelling entirely, reducing your cover amount might be a smarter move. You’ll still maintain some level of protection without paying full premiums - a compromise many Kiwis in their 50s are making as they navigate changing financial responsibilities.

Protect your future self

Trauma insurance is often something we don’t think about until we need it, and by then it’s usually too late to get cover. Given that AIA’s data shows those in their 50s are the most frequent trauma claimants, now might actually be the worst time to drop your policy.

So before making a final decision, weigh the risks and talk to a financial adviser. It’s worth checking if your existing policy allows for flexible options like pausing or reducing cover, rather than cancelling outright.

If you're thinking about reviewing your insurance needs, start by exploring your personal risk options. And if you're ready to consider your next steps, get started with us here.

It's about more than the numbers

Your 50s are a decade of big changes, but they also come with bigger health risks. Before you cancel your trauma cover, consider the peace of mind it brings. Insurance isn’t just about protecting assets, it’s about protecting your future choices, your family’s lifestyle, and your ability to recover with dignity.

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Disclaimer

The information in this article is general information only and is not intended as financial, medical, health, nutritional, tax or other advice. It does not take into account any individual’s personal situation or needs. You should consider obtaining professional advice from a financial adviser and/or tax specialist, or medical or health practitioner, in relation to your own circumstances and before acting on this information.