Sometimes also called Critical Illness Insurance. An amount of money is paid out under this cover for serious conditions like Cancer, Stroke, Heart Attack, Paralysis, Parkinson’s Disease and a number of others including the loss of limbs and/or one of your main functions (hearing, sight, speech). Trauma Insurance is to help take away the financial burden of having to readjust to the impact - likely requiring much more care and help to achieve daily activities like showering, getting dressed, eating, drinking and using the toilet.
Here are some statistics: Everyday 71 Kiwis will be told “you have cancer”. In 2018 alone, more than 26,000 Kiwis were diagnosed with Cancer (Ministry of Health). Each year roughly 9,000 Kiwis have a stroke with 25% of cases are people under 65 years old. More than 170,000 New Zealanders are living with a heart disease and almost 1 in 3 deaths are caused by heart related disease (Heart Foundation).
The risk of contracting a serious condition is real, one worth taking seriously. We recommend Trauma Insurance to help cover the expenses for medical care and adjustments to life, so that you and your loved ones can be cared for without financial burden.
First, check out an insurance company that provides Trauma Insurance or speak to an insurance adviser. Cigna, Partners Life, AIA are some of the larger brands that offer this cover. Most banks insurance will also offer a version of this cover.
Second, you can get a quote online or with an adviser to understand how much cover you should think about getting. This is usually quick and easy. Understanding the appropriate cover to get is important, as it can be easy to underestimate the costs of care for many conditions listed on different policies.
Third, complete an application form and have your personal medical history, as well as your family’s ready. Insurers will need to take some time to assess your medical history to understand risks and what can and can't be covered under your policy.
Fourth, check that you have an Enduring Power of Attorney who has the legal rights to make decisions on your finances, health and welfare on your behalf for when you are seriously ill and cannot receive any income. This immediately places power in the hands of someone you trust, so that focus can be put on your recovery and care rather than dividing responsibility.
Lastly, check that your insurance cover is still right for you every 12 months or if you have any changes to your family, income or lifestyle.
Quashed is an online platform that makes it easy for you to manage and track all your insurance in one place. You’ll be prompted at the right time to check on your insurance and it helps you keep track of how your premiums are increasing each year.
The cost of your premium is different with each provider and they don't all follow the same guidelines when it comes to calculating costs. Premiums are the on-going payments you make to continue your cover and protection. Below are some of the common factors used in the industry that will play a part in determining your premium.
Your smoking history: Your health and the risk of illnesses are important when it comes to making future claims. You will have to pay higher premiums if you have a history of smoking, particularly in the last 12 months.
Your medical history and your family history: With your current health and family's medical history, the insurance company will take these into calculating your premium based on health risks. If you have a developing health issue or a history of illnesses, it may increase your premium costs.
Your lifestyle and hobbies: Extreme sports and other high risk activities will increase the cost as they are likely to lead to trauma in the future. For example, people who enjoy skydiving, mountain climbing, diving, or racing could expect to pay a higher premium.
Age and gender: This largely depends on what type of policy you plan to obtain: a stepped or level premium policy. A stepped policy will be cheaper at first, but will increase in premium cost each year as you age, alongside other personal factors. A level policy is more expensive upfront, but the premium does not change due to increases in age, so the cost won't change over time. In some cases the price of level premium policies can be fixed for the entire insurance term. Personal factors and gender will also be taken into considering your premium cost where males will pay more than females.
Your specific plan and cover: The greater the coverage/agreed value that your policy insures for and the more benefits, add-ons and risks it includes, the more you will pay in your Trauma Insurance premium. This also extends to things such as the benefit period which your insurance will continue to pay out for, and the waiting period before your insurance begins to pay out. A longer benefit period and shorter waiting period will both contribute towards higher premium costs.