Financial Help During Serious Illness in New Zealand

A serious diagnosis can put sudden pressure on your finances from multiple directions at once. This guide maps out the support that exists — insurance entitlements, government payments, lender provisions, tax relief, and free advice — so you can work through it one step at a time. If you'd rather have a plan built around your situation, answer a few questions and we'll build one around you →

Check your insurance policies first

Before anything else, check what cover you hold. Several types of policy can pay out at or shortly after a diagnosis — if you cancel or let any lapse while you're still checking, you may forfeit a payment you're owed.

• Income protection — replaces a portion of your income (typically around 75%) while illness stops you working. Waiting periods and definitions of disability vary between policies; read the policy wording or call the insurer directly.
• Trauma or critical illness cover — pays a lump sum on diagnosis of a listed condition (cancer, heart attack, stroke, and others). This pays out regardless of whether you can still work.
• Total and permanent disability (TPD) — pays if you're permanently unable to work. Some policies cover your own occupation; others require you to be unable to work in any occupation. Check the definition in your policy.
• Mortgage protection cover — meets your home-loan repayments while you're unable to work. Usually has a waiting period before payments begin.
• Employer group schemes — check with your HR department or payroll. Group life, income protection, and trauma cover are often bundled into workplace packages and easy to overlook. Ask what cover the employer holds on your behalf and how to make a claim.

Contact each insurer directly and ask whether your diagnosis triggers a claim. Don't cancel any cover while you're still checking — even policies that seem unlikely to pay may have provisions you haven't considered, and cancelling could forfeit an entitlement.

Your KiwiSaver

KiwiSaver has two withdrawal pathways that may apply after a serious diagnosis. Both are applied through your scheme provider — contact them directly to start either process.

Serious illness withdrawal — available if your illness permanently and severely reduces your life expectancy, or permanently and severely reduces your ability to work. You'll need a certificate from a registered medical practitioner. Your provider assesses the application and, if approved, can release some or all of your balance.

Significant financial hardship withdrawal — available if you genuinely cannot meet your reasonable living expenses, including mortgage payments, rent, food, and essential utilities. You'll need to show the financial shortfall, and your provider may ask whether you have applied for all available government assistance first. They can only release what's needed to cover the gap.

If you're still working but too unwell to keep contributing, you can apply for a contributions holiday to pause your KiwiSaver deductions for up to five years. Contact your provider to arrange this.

Disability Allowance

The Disability Allowance is a weekly Work and Income payment that covers the regular, ongoing extra costs that come directly from a health condition — GP visits, specialist appointments, medicines, transport to treatment, or higher heating costs at home. You don't have to be on a main benefit to qualify; it's income-tested separately and many working people receive it.

Your doctor or specialist completes a short certificate confirming the condition and the associated costs. Apply by calling Work and Income on 0800 559 009 (Mon–Fri 7am–6pm, Sat 8am–1pm) or visiting a service centre.

Community Services Card

If your income has dropped after a diagnosis, you may now qualify for a Community Services Card — an income-tested card that reduces the cost of GP visits and some other primary health services. Eligibility depends on your household income and size. Apply through Work and Income by calling 0800 559 009 or at a local service centre.

Prescription costs

Prescription items subsidised by PHARMAC are free — the $5 per-item co-payment was removed in July 2023. If you need medicines that aren't on the PHARMAC funded schedule, costs still apply; the Disability Allowance can contribute to these ongoing expenses.

For people who regularly need a large number of prescriptions, the High Use Health Card may provide additional subsidies on health costs. Ask your GP or pharmacist whether you qualify. Using a single pharmacy makes it easier to track everything and simplifies any card applications.

National Travel Assistance

If you're referred to a specialist who is 80 km or more away from your home — or if you need to travel frequently for treatment regardless of distance — National Travel Assistance can help with transport and accommodation costs. It's administered by Health New Zealand (Te Whatu Ora) and your hospital or specialist's team handles registration on your behalf. Ask the hospital travel coordinator or your specialist's admin staff to set it up — they do this routinely.

Banks and lenders

If you have a mortgage, personal loan, or credit card and your income is likely to be affected, contact your bank or lender as soon as possible. Under the Credit Contracts and Consumer Finance Act, lenders are required to consider genuine hardship applications.

Options typically include mortgage deferrals (pausing principal and sometimes interest), reduced repayments, restructuring the loan term, or temporary credit card interest relief. Most banks have a dedicated financial hardship team — ask for them by name when you call. The earlier you make contact, the more options are usually available; don't wait until you've already missed payments.

Tax and IRD

A mid-year drop in income can affect your tax position in your favour. If you've been paying PAYE on a salary that then falls, you may be owed a tax refund — IRD usually calculates this automatically at the end of the tax year, but you can also check through myIR.

• Student loan repayments — if your income falls below the repayment threshold, automatic deductions should reduce or stop. If you're still struggling, IRD has a hardship application process. Call 0800 775 247 or manage it through myIR.
• Working for Families — if your household income has dropped significantly, you may now qualify for Working for Families tax credits or qualify for a higher entitlement than before. Update your income estimate through myIR or call IRD to reassess.

Condition-specific charity grants

Many condition-specific charities offer one-off financial grants or direct support for people facing treatment costs, travel expenses, or income disruption. This is an underused resource — the application process is usually simple and the grants exist specifically for situations like this.

The Cancer Society (0800 226 237) has a grants programme for people affected by cancer. The Heart Foundation and other national organisations have similar provisions for their conditions. Contact the charity relevant to your diagnosis and ask directly what financial support is available.

Free financial advice

You don't have to map all of this out alone. Free, confidential financial advice is available from several sources:

• MoneyTalks — a free financial helpline staffed by trained budget advisers: 0800 345 123, or reach them by text or online chat at moneytalks.co.nz. Available weekdays and some evenings. A budget adviser can help you work through your full picture — benefits, insurance, lender options — in a single conversation.
• Citizens Advice Bureau — free, confidential help with money, benefits, and debt questions: 0800 367 222, or find your nearest branch at cab.org.nz.
• Sorted.org.nz — free tools and guides for managing money during a crisis, including budgeting calculators, debt tools, and an insurance checker.