Trauma Insurance: What is it and do I need it? | Protection Solutions

Trauma Insurance: What is it and do I need it?

Trauma Insurance: What is it and do I need it?

September 4th, 2020

Nobody wishes to think about being diagnosed with a critical or dreadful disease as it often brings with it severe implications related to costs of health treatments, medical procedures and possibly the loss of income. However, thinking about these things in advance and making sure you are prepared allows you to be covered just in case something terrible happens. Trauma Insurance can do just that, however not everyone understands what Trauma Insurance is and whether or not they need it. Let’s look at Trauma Insurance in more detail to help you decide if it’s right for you.

What is Trauma Insurance?

Trauma Insurance is also known as Critical Care, Progressive Care, and various other names. Having Trauma Insurance means you get paid out a lump sum after falling ill with a critical disease or illness. This allows you to take time off work for hospitalisation, rehabilitation or at home recovery. With Trauma Insurance you can choose how much money you’ll be paid out when you apply for the cover. Think about trauma insurance as living insurance, if you were to be diagnosed with a critical condition, you’d get paid the lump sum amount.

What conditions are covered by Trauma Insurance?

The providers we work with will have differences in their policies as to what conditions they cover. Most trauma policies have a list of 40 or more specific conditions, which we can discuss with you if you choose to take out cover. There are however a few standard conditions that are covered by most providers, for example, cancer, heart attack, stroke, and terminal illness to name a few. It is important to remember that not all conditions are covered, so make sure you have a good idea as to what conditions various policies cover. Be careful of policies that only have a shorter list of covered conditions, they are often no cheaper and offer a far greater risk of not getting paid at claim time. Some providers even offer a free critical illness kids cover (but we will get into this topic in another blog!).

Do I need Trauma Insurance?

This is a question only you can truly answer. Trauma Insurance pays out a lump sum, therefore most people will use this money for medical care, recovery, mortgage/rent payments or even a holiday if they wish to do so. As insurance advisers we see these two primary benefits to having Trauma Insurance:

  1. Economic: When faced with a critical illness it will have a huge financial impact on you and your family, having Trauma Insurance in place helps minimise financial stress. Often the payment allows the well-partner to take time off work to support you, which is a great benefit!
     
  2. Recovery: Having Trauma Insurance gives you the ability to take time out to recover, physically and mentally from a traumatic event. Having money to pay for medical bills or even for a holiday can assist in your recovery process.

What does an NZ Trauma Policy Cover?

Trauma insurance cover can be made to suit your needs. Please remember that your choice of cover will impact how you can claim. You can choose all types of cover, or two or just one. Some options include:  

Comprehensive          Major  Multi or Severe            Cancer only Cover      Progressive Care

Are you interested in getting Trauma Insurance? Contact one of our advisers today, we would be happy to look at the options available to you.