Many people take out Life Insurance policies, but a large proportion overlook the importance of taking out Trauma Cover to cover yourself in the case of a serious illness without death. Trauma Cover pays a lump sum or a regular income when you are diagnosed with specific illnesses or injuries. Unlike Income Protection, it does not rely on whether your can work or not, it is a lump sum payment that gives you the financial stability to pay off your mortgages and debts, go on a holiday.
Around 42 of the most common illnesses are covered. Some examples of these are:
- Heart attacks
- Major Burns
Trauma Cover is also known as Living Assurance, Critical Illness Cover or Serious Care.
Why do I need Trauma Cover?
Medical treatment both nationally and internationally is ongoing and rapidly advancing, which means New Zealanders have a greater chance of surviving than ever before. If you suffered a serious illness, would you be able to pay your debts or maintain your lifestyle? How hard would it be on your family?
- One in five men and one in seven women between the ages of 30 and 64 will suffer a critical illness. (Gen Re LifeHealth ‘Australian Critical Illness Survey 2008’)
- Sixty-one per cent of cancer patients will recover and be alive five years after diagnosis. (South Australian Cancer Registry, 2003)
- Every day, about 22 people in New Zealand suffer a stroke. (The Stroke Foundation of New Zealand, 2010)
Want to know more?
Our advisers provide specialist advice free of charge.