Types of Trauma Insurance
- Standalone Trauma Insurance: This policy solely focuses on critical illnesses and conditions, providing a lump-sum payment upon diagnosis of a covered condition.
- Trauma Insurance as a Rider/Addon: Some life insurance policies allow the addition of a trauma insurance rider, providing coverage for critical illnesses alongside the primary life insurance coverage as part of an overall bundled insurance policy. Sometimes securing multiple types of insurance under the same policy or from the same provider can result on better deals on premiums.
Benefits of Trauma Insurance
- Financial Support: Trauma insurance offers a tax-free lump sum payment upon the diagnosis of a covered condition. This payment can be utilized to cover medical expenses, rehabilitation costs, debts, or any other financial obligations during a difficult period.
- Flexibility in Usage: The lump-sum payment received from trauma insurance can be used at the policyholder's discretion, providing financial freedom to seek alternative treatments, hire caregivers, or even make lifestyle adjustments.
- Peace of Mind: Having trauma insurance offers peace of mind, knowing that you and your loved ones are financially protected against the potential financial burdens that may arise from critical illnesses.
Typical Conditions Covered
Trauma insurance policies in New Zealand typically cover a range of critical illnesses and conditions, including but not limited to:
- Cancers: Coverage for various types of cancer, such as breast cancer, lung cancer, prostate cancer, and more.
- Heart-related conditions: This includes heart attack, coronary artery bypass surgery, and cardiac arrest.
- Stroke: Coverage for a significant stroke resulting in permanent neurological deficit.
- Major Organ Transplant: Coverage for procedures involving the transplant of major organs, such as heart, liver, kidney, or lung.
- Paralysis: Coverage for conditions resulting in permanent and irreversible paralysis.
- Loss of Vision, Hearing, or Speech: Coverage for the loss of sight, hearing, or speech due to illness or injury.
- Various major surgeries or procedures: Make sure that you check your specific policy wording whenever you undergo any medical procedure or receive a diagnosis, as in some cases, in our experience people with active trauma cover have often been able to make a significant claim and not known about it.
Trauma insurance plays a crucial role in safeguarding individuals and their families against the financial implications of critical illnesses. In the New Zealand marketplace, there are various types of trauma insurance policies available, offering benefits such as financial support, flexibility in usage, and peace of mind. Understanding the coverage and conditions included in trauma insurance can help individuals make informed decisions about their insurance needs and secure their financial well-being if anything severe does go wrong with their health.
Sometimes people can make the assumption that a severe health event will result in either a recovery or an unfortunate passing, but from 30 years in the Insurance Marketplace, this is not often the case. In fact, the most likely outcome is a protracted period of disablement during which you may no longer be able to continue earning an income. With a lump-sum trauma insurance claim though, your financial worries will be alleviated, allowing you to focus on your recovery and continue to provide for your loved ones and dependants.
*Please note that the coverage, conditions, and benefits of trauma insurance may vary between insurance providers. It is recommended to consult with a qualified insurance advisor or provider to understand the specific details of a policy before making a purchase
