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It’s probably fair to say that the range of personal insurance options available to Kiwis is a bit overwhelming. From contents to car, life to income protection, funeral cover to pet insurance and everything between. Being aware of what insurance covers exist let alone understanding what they do is a challenge.
An often overlooked, but potentially life changing insurance cover is Trauma. This week we dive in to explain it.
What is Trauma Insurance
If you live in New Zealand, you have a one in three chance that you will suffer a ‘Trauma’ event in your lifetime. A trauma event is a critical illness such as a heart attack, stroke or cancer.
These types of illnesses are particularly cruel as they do not just rob us of our health, but often our loved ones are also deeply impacted as they drop everything to be the support network. Organising everything from the cooking, to being the transport for medical appointments as well as acting as a source of comfort.
Overnight two incomes can be reduced to one or none this is where Trauma Insurance steps in by providing a lump-sum cash payout (tax-free).
The benefits of Trauma Insurance
Trauma Insurance removes the immediate financial stress associated with a critical illness.
Trauma Insurance usually provides automatic cover for children (and/or grandchildren) and the funds from the payout can be used for anything you desire including income support, childcare and/or holidays. Critically, these funds can also be used to fund alternative medical treatment options.
Things to be aware of
There are a wide range of Trauma Insurance products available within the New Zealand market - with insurers offering varying definitions and coverage levels. Some insurers cover all types of cancer, but many only cover specified types. Some products will offer a payout based on the severity of the conditions and others pay out a guaranteed figure.
The key to getting your Trauma cover right is to work with a financial adviser who can present you with all the options and ensure your coverage is right for your own personal circumstances.
As a standalone cover, Trauma Insurance can usually be purchased for less than $50 per month on a $100,000 benefit for those aged 40 or under. Costs can be reduced further by bundling a trauma benefit with Life Insurance coverage.
If you would like to have a conversation about Trauma Insurance, please email firstname.lastname@example.org to arrange a meeting with one of our financial advisers.