Sunday, January 25, 2015

Do you need trauma insurance?

Did you know:

1. 52 people are diagnosed with cancer everyday in New Zealand.

For many of us who only have basic life insurance or medical insurance, this could be a catastrophic event not only healthwise but financially. Lost income through work and the cost of care spiral upwards quickly, especially if you are the family's sole breadwinner and savings can be rapidly depleted. Upon diagnosis of a critical condition like cancer though, trauma insurance will pay out its entire sum assured to help you and your family financially through your tough times. For this reason, we recommend considering it thoroughly.


2.  Although cancer rates are increasing, deaths due to cancer are decreasing.

The rate of death from cancer has fallen 16.2% in the period between 1999 and 2009. This reflects the continuing advances in treatment. As our population ages, the increase in cancer will continue, with a great proportion of those surviving the disease which is great news. However, once more, it brings into focus how costly a battle with cancer can be for an individual or family.

3. Between the ages of 30 and 65, one in five men and one in seven women will suffer a critical illness which trauma cover could insure them for.

This means that a working couple has a one in three chance of having one its members suffer a serious malady before New Zealand's current retirement age. Are you prepared?

4. 1 in 20 New Zealand adults have been diagnosed with heart disease. That totals a huge 165,000 New Zealanders.

5. A considerable number of less serious conditions and procedures entitle you to a full or partial trauma insurance claim payout.

Whilst you can certainly claim upon your full trauma cover for diagnosis of serious heart disease or when you undergo a major heart operation, many can be unaware that less serious procedures or conditions can be partially covered too. A friend recently found to his surprise that he was entitled to a payout of half of his sum assured for having a stent inserted into his artery (a relatively common procedure). The surgery itself was covered by his health insurance, so the trauma payout helped him pay outstanding bills and provided an unexpected boon to his finances. Read more about his story here.

6. The average age of a Trauma Insurance payout is 47.

This is considerably younger than most people expect to go through a serious health condition. As an average figure too, many payouts occur even younger than that.

7. 21 New Zealanders a day have a stroke.

Approximately 35% of stroke victims are aged under 40.

Wednesday, January 14, 2015

What is Whole of Life Insurance?

Much like a regular term life insurance policy, a Whole of Life policy is designed to provide a sum of money (the sum assured) to someone else or to a trust upon your death. It provides an increasing level of cover which gradually builds up a cash value through to a chosen maturity date as premiums are paid. Whole of life cover is the only form of life insurance that can be paid out whilst the policy holder is still alive, if they survive past the agreed upon maturity date of the policy.

Also, whereas a term life policy covers you for a certain period of time (for instance, until the age of 65 or for a certain amount of years after you take out your policy), whole of life insurance covers you for your entire life. As such, it is generally a lot more expensive than regular term cover and has become less and less prevalent in the NZ insurance market over time. Today, few insurers here offer whole of life cover, but many policies taken out in the past are still in force and active across the country.

Whole of Life insurance is also different from other forms in that it can have aspects which function as an investment. For some whole of life policies, premiums paid are invested into a fund and can be refunded to the policy holder if performance is greater than expected. Sometimes, premiums are expected to be paid for the entire life of the policy (as long as the policy holder lives) and in other cases, the premiums cease at a certain age although the cover goes on until death. This is established when the policy is taken out, as well as the sum assured and the fixed premiums.

Whilst few providers offer whole of life policies in New Zealand these days, if you have one that is currently active and you have any questions about your policy, you can use our website's contact form to get a reply quickly and easily at anytime.