Why do I need Trauma Insurance When I have Health Cover

When we discuss Trauma insurance with clients, they often tell us that they have private health insurance in place, so they don’t see the need for trauma insurance. In reality, these two kinds of insurance are very different. There is a general belief that, if you have private health insurance, all your medical expenses are covered in the event of a significant illness. Unfortunately, this is often not the case.

Trauma insurance is not designed to replace private health insurance. It’s designed to fund the financial impact of suffering a critical illness. A Trauma insurance policy pays out a lump sum benefit on diagnosis of a specified critical illness such as cancer, stroke, heart attack and many others. This benefit helps cover things like out-of-pocket medical expenses and the loss of your spouse’s income, as they would typically need to take time off work during treatment. Depending on the type of illness and the severity, the financial impact can vary significantly – from the tens of thousands up to the hundreds of thousands of dollars.

The trauma of not having Trauma Insurance

Cancer is one of the most common critical illnesses in New Zealand, and is often one of the most expensive to treat. Recent examples that we are aware of include a woman who had to take a second mortgage to fund $60,000 worth of out-of-pocket medical expenses following a cancer diagnosis for non-funded drugs, despite having private health insurance. Or the 13 year-old boy whose parents were faced with a $35,000 expense for his Hodgkin’s lymphoma medication. So, unless you have the necessary funds available elsewhere, your medical treatment options are often limited by your financial means.

Could you afford the best treatment?

The benefit of having effective Trauma insurance on top of your private health insurance, is that it provides you with the necessary funding to ensure that you can choose the best possible treatment for your illness, and aren’t forced to take options that result in a poor quality of life and/or a much lower recovery rate.

The good news is that survival rates have increased significantly, due to advances in medical treatment. Unfortunately, this can come at a significant cost at a time when stressing about finances is the last thing you need. So don’t be caught out by thinking that private health insurance pays all the bills. Effective trauma insurance could give you financial flexibility as well as access to the treatment you need, when you need it.

Child’s benefit

At no additional cost, all of your children (either by birth or legal adoption) aged between 2 and 20 (inclusive) years are covered  for the lesser of $50,000 or 20% of the parent’s Trauma sum assured should they suffer for the first time after the cover starts one of the Trauma insurance conditions. The child must survive for a period of 14 days. This can be converted up to 30 days before or after their 21st birthday to their own Life Assurance with Trauma accelerated cover.

Financial planning benefit

If a benefit of at least $100,000 is paid, a further benefit of up to $2,500 may also be payable. We will reimburse the reasonable costs of a fully documented financial plan prepared by an Authorised Financial Adviser.

And many more built in benefits

Need to know more, call us on 0508 54 33 26 or complete the form below and one of our team will be in touch with you.

TIP: It’s important to check your coverage each year when you renew your insurance, or whenever your circumstances change.


Trauma Cover Conditions

Full benefit conditions – Trauma Insurance

  • Accidentally acquired HIV
  • Alzheimer’s disease
  • Angioplasty-triple vessel*
  • Aorta surgery*
  • Aplastic anaemia
  • Benign brain tumour or benign spinal tumour
  • Cancer*
  • Carcinoma in situ-major treatment*
  • Cardiomyopathy
  • Chronic kidney failure (renal failure)
  • Chronic liver failure
  • Chronic lung disease
  • Cognitive Impairment
  • Coma
  • Coronary artery bypass surgery*
  • Creutzfeldt-Jakob disease (CJD)
  • Dementia
  • Encephalitis
  • Heart attack*
  • Heart valve surgery*
  • Intensive care

Need to know more about Trauma Insurance – call us on 0508 54 33 26

  • Loss of independent existence
  • Loss of limb and eye
  • Loss of limbs
  • Loss of sight in both eyes
  • Loss of speech
  • Major head trauma
  • Major organ transplant
  • Meningitis and/or meningococcal disease
  • Motor neurone disease
  • Multiple sclerosis
  • Muscular dystrophy
  • Occupationally-acquired HIV
  • Open heart surgery
  • Out of hospital cardiac arrest*
  • Paralysis
  • Parkinson’s disease
  • Peripheral neuropathy
  • Pneumonectomy
  • Primary pulmonary hypertension
  • Severe burns
  • Severe diabetes
  • Severe inflammatory bowel disease
  • Stroke*
  • Systemic sclerosis
  • Total deafness in both ears

Partial benefit conditions – Trauma Insurance

  • Adult onset type 1 insulin dependent diabetes mellitus
  • Alzheimer’s disease diagnosis
  • Aneurysm
  • Angioplasty-two vessels  or  less*
  • Carcinoma in situ-without major treatment*
  • Chronic  lymphocytic  leukaemia*
  • Colostomy and/or ileostomy
  • Dementia diagnosis
  • Early stage prostate cancer*

Need to know more about Trauma Insurance – call us on 0508 54 33 26

  • Hydrocephalus
  • Loss of one limb
  • Loss of sight in one eye
  • Major burns
  • Malignant melanoma diagnosis*
  • Multiple sclerosis diagnosis
  • Parkinson’s disease diagnosis
  • Severe osteoporosis
  • Severe rheumatoid arthritis
  • Systemic lupus erythematosus
  • Total deafness in one ear

* Three month stand-down from the trauma insurance cover commencement date applies. Refer to the Policy Wording for full definitive details and conditions.