Life can change in an instant. A diagnosis of cancer, a heart attack, or stroke can upend not only your physical health but also your financial stability. For New Zealanders, trauma insurance offers a way to protect against the financial burden that comes with critical illnesses.
In New Zealand, where rates of heart disease, cancer, and other major health issues are rising, having trauma insurance in place can provide vital support during a difficult time.
But many people don’t understand exactly what trauma insurance is. So… in this article we’ll explore how trauma insurance works, what are the most common conditions it covers and how it can help safeguard your financial future.
Starting at the beginning trauma insurance, also known as critical illness insurance, provides a lump sum payment if you’re diagnosed with a critical illness. The payout is made upon diagnosis of a condition covered by your policy, and you can use the funds however you see fit – whether it’s to cover medical bills, reduce debt, pay for home care, or simply help with everyday living expenses while you focus on recovery.
Unlike other forms of insurance, trauma insurance doesn’t require that you be unable to work to receive a payout. As soon as you’re diagnosed with a covered condition, the payout is triggered, giving you immediate financial relief when you need it most. For those in higher-risk occupations or facing significant financial commitments, trauma insurance can be an essential part of a comprehensive protection plan.
Trauma insurance policies in New Zealand typically cover a range of critical illnesses and major injuries. While the specific conditions covered vary depending on the policy, the most common ones include:
Cancer
Cancer is the leading cause of death in New Zealand, with nearly 26,000 people diagnosed each year according to the Cancer Society of New Zealand. Many trauma insurance policies cover a wide range of cancers, from the more common types like breast, prostate, bowel, melanoma and lung cancer, to less frequent but equally severe forms such as leukaemia and brain cancer. A diagnosis of cancer can lead to significant treatment costs, time off work, and lifestyle changes, making trauma insurance a crucial financial safety net.
Heart Disease
Cardiovascular disease is another major health concern in New Zealand, affecting thousands of people annually. Heart attacks, strokes, and coronary artery bypass surgeries are typically covered under trauma insurance policies. With heart disease being the second leading cause of death in the country, having financial protection in place if you suffer a heart-related event can relieve the pressure of medical bills and rehabilitation costs.
Stroke
Strokes are another condition commonly covered by trauma insurance policies. A stroke can have devastating effects, leading to long-term disability or a lengthy rehabilitation process. The financial burden of recovery – including medical care, physiotherapy, and lost income – can be significant. Trauma insurance can help ensure that you and your family are financially secure during the recovery period.
Other Commonly Covered Conditions
Beyond cancer, heart disease, and stroke, trauma insurance can also cover other critical conditions, such as major organ transplants, kidney failure, serious burns, and paralysis. Each policy is different, so it’s essential to carefully review what conditions are covered to ensure you’re adequately protected.
In New Zealand, rates of cancer, heart disease, and other major health issues have been steadily increasing. According to the New Zealand Cancer Society, 1 in 3 New Zealanders will be diagnosed with cancer in our lifetimes, while heart disease remains one of the country’s biggest killers.
While public healthcare provides some support, dealing with these critical illnesses often involves out-of-pocket costs that can strain your finances. Trauma insurance offers a financial cushion that can allow you focus on your recovery rather than worrying about how to pay for treatment or cover your living expenses.
Trauma insurance is an essential part of your financial protection plan, especially considering New Zealand’s rising rates of serious illnesses. It provides you with a lump sum payout upon diagnosis of a covered condition, giving you the freedom to use the funds as you need. Whether it’s to pay for medical expenses, support your family, or maintain your lifestyle during recovery, trauma insurance can ease the financial stress of navigating a critical health crisis.
If you’re considering trauma insurance or want to review your existing coverage, book in a free consultation with one of our insurance specialists. It costs nothing to speak to our team and then can provide you with comprehensive advice on the best policies to give you peace of mind based on your personal circumstances. To book a free consultation, click here.
The content of this article should not be taken as financial advice, or a recommendation of any financial product. These insights are based on current economic commentary, market pricing for interest rates, and our personal opinion. Threefold is not liable or responsible for any information, omissions, or errors present.
