Life, health, income protection, mortgage protection, trauma cover… It can be hard to understand the wide array of insurance products available in the market these days.
If you want to protect yourself and your family from the financial consequences of a serious illness, what’s the best way to do that? Health insurance and trauma insurance can both step in, in different ways.
Health insurance can be a wide-ranging product. You can get everyday cover, which pays out for things such as GP visits and is usually more ‘budget-friendly’. Or you can have policies that only cover surgery, and others that cover everything from your dentist check and new glasses to surgery.
Depending on your policy, your insurance should pay some or all of the bill. And on this note, it’s important to choose the right excess, which is the fixed amount you agree to pay each time you claim. Selecting the highest excess you can afford to pay can be a good way to reduce your premiums.
About 30 per cent of New Zealanders have health insurance, and many use it to skip the public waiting lists, access private treatments and get treated faster. Some health insurance policies even provide cover for unfunded drugs, including expensive cancer treatments that have been successfully trialled overseas.
Whatever your needs and goals are, we can help you find the right cover for your circumstances.
Also referred to as critical illness insurance, trauma insurance is designed to pay out when the insured person suffers a specified (or defined) condition. The list of covered conditions varies depending on the policy but usually include serious cases of cancer, stroke, heart attacks and kidney failure. The conditions covered by trauma policies are serious, and usually life-threatening.
Trauma insurance provides a lump sum that can be used for whatever you like: your treatment, paying off debts or just providing some money to get you through your period of ill health. According to the Insurance and Financial Services Ombudsman, there is some confusion about trauma policies among some people, especially when it comes to the definition of ‘trauma’. As always, it’s important to read and understand your policy documents, and we can help you do that.
Although trauma and health insurance both come into play in cases of serious illness, they are complementary.
Imagine you were diagnosed with a benign tumour of the spine. Your health insurer might pay for your specialist consultations, surgery, if it was necessary to go to a private provider, and follow-up treatment. Your trauma policy would then pay out so that you could, for example, clear your mortgage and take the everyday financial stress off your family. In cases where health insurance policies do not cover non-Pharmac drugs, you could call on a trauma policy to cover some of the cost.
The choice, once again, comes down to your circumstances, and the worst-case scenarios you’d like to avoid. We are here to help. Give us a call today to discuss what insurance policies you might need, and the best way to provide you and your family with peace-of-mind that you’ll be protected, whatever happens.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek financial advice.