Trauma Insurances
Trauma Insurance
Trauma insurance provides a lump-sum payment if you are diagnosed with a serious traumatic health condition.
Trauma insurance anticipates that you are going to live through that health condition, and is designed to provide you with the funds to get through, without adding financial stress to the stress of your traumatic health situation.
The most common payments made for trauma insurance cover are for heart attack, cancer and stroke. Trauma insurance is also sometimes called Critical Care Insurance, Vital Care Insurance or Living Assurance.
With Trauma insurance, you select the sum that you want to be insured for,
and it will be paid out if you are diagnosed with that traumatic condition.
All trauma insurance policies are not created equal
Trauma insurance is a more complex product than life insurance.
Policies differ significantly in both the number of conditions covered and how those conditions are defined.
Some policies cover only a small number of conditions. Higher quality policies may cover many more, and often with broader or more practical definitions.
Because the policy wording determines whether a claim is paid, the differences matter more than most people realise.
How much trauma insurance cover do I need?
The amount of cover that you should have will depend on a range of things, including:
Other insurance cover that you have in place (eg income protection insurance)
The amount of debt that you have
Whether there are two incomes in the family
How do we help you with your Trauma Insurance?
Choosing trauma insurance involves balancing quality, cost, and how it fits with your other insurance cover.
Our role is to help you work through those decisions and put appropriate cover in place, and to support you if you need to claim.
What do I need to be aware of with my trauma insurance?
Trauma insurance will only pay out if all of the following apply:
Your premiums are paid and up to date.
You disclosed all relevant information when you applied for the policy.
You are past any stand-down period that applies to the condition.
Stand-down periods are often three or six months and commonly apply to conditions such as cancer, stroke, and heart attack.
Types of trauma insurance cover
Trauma insurance can be structured in two ways:
Accelerated trauma cover, where the trauma benefit is part of your life insurance. If a trauma claim is paid, the life insurance cover reduces by the amount paid out.
Standalone trauma cover, which sits separately from life insurance and does not reduce your life cover when a claim is paid.
Trauma Insurance Case Studies
We have assisted a number of clients who have successfully claimed on their trauma insurance following serious illness.
The payments received helped reduce financial pressure while they focused on treatment and recovery.
Some of the actual payments that our clients have received are:
Sex | Approximate Age | Condition | Approximate Amount |
Female | 42 | Breast Cancer | $195,000 |
Female | 46 | Breast Cancer | $260,000 |
Female | 52 | Pancreatic Cancer | $180,000 |
Male | 38 | Cancer | $190,000 |
Male | 48 | Motor Neurone Disease | $58,000 |
Male | 52 | Prostate Cancer | $85,000 |
Male | 63 | Parkinsons Disease | $66,000 |
Female | 37 | Cancer | $300,000+ |
Moneyworks NZ Ltd
P: 0800 225 621
E: contact@moneyworks.co.nz
7c Hall Street, Cambridge 3434
Licensed Financial Advice Provider - FSP 15281
Regulatory Information: Moneyworks is a Licensed Financial Advice Provider (FSP15281), and AML Reporting Entity and is supervised by the Financial Markets Authority.