Most Kiwis are familiar with life insurance: an essential policy if you’ve got debts to pay and family who rely on you. But many don’t hold a trauma insurance policy despite the fact it’s often just as essential as life cover.
This gap could leave thousands of Kiwis vulnerable – so what’s the story with trauma insurance and do you need it?
Trauma insurance, sometimes called critical illness insurance, pays a one-off lump sum to the policyholder in the event that they suffer a serious illness or injury. This type of insurance usually covers up to 50+ different illnesses and injuries including:
The idea is that the lump sum makes it easier to pay for your medical care and covers living costs until you’re able to get back to work. These costs might include your mortgage, rehabilitation, your family’s living costs and anything else that comes up as a result of your illness or injury.
Trauma insurance isn’t for everyone. If you’re young, healthy and have no dependents or debts, you might not need it. On the other hand, you may need trauma insurance if you have:
Ask yourself – ‘if my income stopped all of a sudden and I had to cover a number of unexpected costs, would my family and I be able to cope?’ If you answered ‘No’ or I’m not sure’, then chances are you need trauma insurance.
When buying trauma insurance, it’s a good idea to shop around for better value and to find a policy that suits your unique circumstances. When comparing policies consider:
Buying trauma insurance is easy, but buying the right trauma insurance tailored to you? Not so much. Make sure you get it right and speak to an insurance advisor here at Money Empire before you buy.