What is Critical Conditions Insurance?

Critical Conditions insurance is a policy which pays a tax-free lump sum benefit if you develop any one of a number of specified medical conditions. The benefit is normally the full amount of cover provided under the policy, but for some lesser conditions a partial payment applies.

AIA Living Critical Conditions

Critical Conditions insurance includes a range of benefits designed to support you when you need it most.

Critical Conditions can make up for loss of earnings and assist in clearing debt which might otherwise be a drain on your finances. It can also meet often substantial expenses involved in private treatment.

Minimum commencement age 2*
Maximum commencement age 70
Expiry age None

*The minimum commencement age for online applications is 16.

Get a Quote

Learn More

Covered Medical Conditions

Critical Conditions insurance provides cover for more than 50 medical conditions across 5 categories:


Carcinoma-in-situ radical surgery
Malignant tumours
Prostate cancer


Angioplasty – less than 3 vessels
Angioplasty – 3 vessels or more
Aortic surgery
Cardiac defibrillator insertion
Coronary artery bypass surgery
Heart attack
Heart valve surgery
Out-of-hospital cardiac arrest
Pacemaker insertion
Pulmonary hypertension

Major Neurological Disease

Alzheimer’s disease
Benign brain or spinal cord tumour
Cerebral aneurysm
Creutzfeldt-Jakob disease
Idiopathic Parkinson’s disease
Major head trauma
Motor neurone disease
Multiple sclerosis
Muscular dystrophy
Peripheral neuropathy

Paralysis and Loss of Functionality

Loss of independent existence
Permanent blindness
Permanent loss of hearing
Permanent loss of speech
Permanent loss of use of limbs
Quadriplegia/ Tetraplegia

Other Key Conditions

Advanced diabetes
Aplastic anaemia
Chronic liver failure
Chronic lung disease
Chronic renal failure
Cognitive impairment
Intensive care
Major transplant surgery
Severe burns
Severe Crohn’s disease
Severe illness or injury
Severe osteoporosis
Severe rheumatoid arthritis
Severe ulcerative colitis
Systemic lupus erythematosus
Systemic sclerosis
Terminal illness

A 3 month stand down period (from the date the Critical Conditions Benefit commences) applies to certain conditions. Please refer to the Policy Wording for full details, including when a stand down period applies, and when a full or partial payment applies.


Critical Conditions insurance includes a comprehensive range of benefits:

Critical Conditions Benefit

Receive a benefit payment if you suffer for the first time any one of more than 50 medical conditions, to the extent specified in the policy.

A partial benefit applies to certain conditions, for example, where you suffer a specified medical condition to a less serious extent than that which would normally trigger a full benefit payment.

Includes cover if you suffer a major medical condition that isn’t specifically listed in the policy wording but meets AIA’s definition of a severe illness or injury. See the Policy Wording for details.

Financial and Legal Advice Benefit

After you receive a full claim payment, get reimbursed for up to $2,500 (including GST) for financial planning fees paid to an accredited adviser or for legal advice from a legal professional approved by AIA.

Children’s Trauma Benefit

If a child of yours (aged between 2 years and 21 years) suffers an applicable condition, this benefit will pay 50% of the sum assured (up to $50,000). This benefit provides trauma cover for your children at no additional cost.

Payment of this benefit will not reduce the amount of the Critical Conditions Benefit.

Newborn Children’s Benefit

If your biological child is born with one of five defined congenital conditions and survives for 30 days after birth, receive a benefit of 50% of the sum assured (up to $50,000).

Payment of this benefit will not reduce the amount of the Critical Conditions Benefit.

Children’s Trauma Conversion Facility

The Children’s Trauma Benefit can be converted to a standalone Critical Conditions Benefit, or an accelerated Critical Conditions Benefit with an equal amount of Life Cover, of up to 50% of the original sum assured (up to a maximum of $50,000), without further medical evidence.

Premium Conversion Facility

At any time before age 65, you can convert all or part of your Critical Conditions Benefit from a Rate for Age premium structure to a Level premium structure without needing to produce further medical evidence.

Special Events Increase Facility

You can increase the amount of cover under your policy following certain life events, without any medical questions, examinations or tests. A premium will be applied to the additional cover.

Future Insurability Benefit

You can increase the amount of cover under your policy at every third policy anniversary date by up to 20% of the original cover (up to a maximum of $200,000), without any medical evidence. An increase in premium applies.

Return Home Benefit

If you are outside New Zealand and suffer from, for the first time, a covered condition, AIA will reimburse the cost of a standard economy flight back to New Zealand for you and one support person, up to a total cost of $10,000.

Parents Grieving Benefit

AIA will pay a Parents Grieving Benefit if a child of yours dies before age 21. A benefit will even be paid if a child of yours dies prior to birth but after at least 24 weeks gestation and you are the biological mother of the child. If the child is under age 10, the amount payable is $2,000 (the maximum under law), otherwise the amount payable is $15,000.

Counselling Benefit

Get reimbursed for up to $2,500 (including GST) for the cost of a psychiatrist or psychologist consultation and/or counselling where the support treatments and/or consultations directly relate to a claim under the Critical Conditions Benefit.

Suspension of Cover Benefit

Flexibility to suspend your cover for up to 12 months if you:

  • Go on parental leave;
  • Go on leave without pay for any reason;
  • Become unemployed or redundant;
  • Experience a reduction in pay of 20% or more (comparing the most recent payslip against a previous payslip from the same year); or
  • Are self-employed and experience a reduction in revenue of 30% or more (by comparing one month’s revenue against the same month for the previous year).

No premium will be payable during the period that cover is suspended. No claim will be payable for any condition that occurs during the period that cover is suspended.

Please refer to the Policy Wording for full details of all benefits and any associated terms and conditions.

Policy Features

Critical Conditions insurance includes the following great features:

Financial Strength

The policy is underwritten by AIA New Zealand Limited, New Zealand’s largest life insurer. AIA New Zealand Limited has an AA (Very Strong) financial strength rating from Fitch Ratings.

24 x 7 Worldwide Cover

Whether you’re at home, travelling or working anywhere for any period (including overseas, even if you move overseas permanently), you remain insured.

Lump Sum, Tax-Free Benefits

Under current legislation, any and all benefits payable under the Critical Conditions Benefit are paid as tax-free lump sum benefits, directly to the policy owner.

Automatic Enhancement

If any change is made to the underlying AIA Living policy in the future, and that change would be favourable to you, then the Enhancement Pass Back Benefit means that the enhanced change will automatically be applied (passed back) to your policy. Conditions apply.

Free-Look Period

If at any time during the 15 days following receipt of your policy you do not wish to continue with your cover (for whatever reason at all), you can return your policy for a full refund of all premiums paid.

Please refer to the Policy Wording for full details and any associated terms and conditions.


Trauma Insurance Brochure

Download or view the brochure:

Trauma Insurance Brochure PDF

Policy Wording

Critical Conditions Policy Wording

The Critical Conditions policy wording is comprised of the following documents:

AIA Living Umbrella Policy Wording PDF
The Umbrella Wording is common to all AIA Living policies.

Critical Conditions Policy Wording PDF
The Benefit Appendix is specific to the Critical Conditions benefit.

AIA Vitality

AIA Vitality

AIA Vitality is a science-backed health and wellbeing program that supports and rewards you for making healthier choices.

Premiums for eligible insurance policies that cover you may be discounted in certain circumstances based on your membership and participation in the AIA Vitality program. You’ll receive an initial 10% premium discount in your first year.

A membership fee of $11.50 per month per member applies.

Learn more


Check out our FAQs for answers to frequently asked questions.

Get a Quote

Important Information

  • The above identifies and provides a brief summary only of the principal benefits under the policy. Please refer to the Policy Wording for full details of all benefits and the terms and conditions under which they are provided.