We know that planning for the unexpected isn’t easy, especially at a time in your life when you are healthy and well. But despite the best intentions around leading a healthy lifestyle, a major medical event could sneak up on you when you least expect it. According to the Heart Foundation NZ, 175,000 Kiwis live with heart disease, and based on Cancer Control Agency data 25,000 Kiwis are diagnosed with cancer each year.
While you are in your prime, the best time to plan for a major medical event is now.
Trauma insurance (also known as critical illness cover) can be a way to safeguard your financial future for when the unexpected happens. Trauma insurance pays out a lump sum of cash if you or your loved one is diagnosed with a critical condition or injury, such as stroke, heart attack, cancer diagnosis or loss of independence from a traumatic medical event.
If not planned for, critical injury or illness can put you and your loved ones in a compromising financial position. Significant medical events like a heart attack or cancer diagnosis may often require you to stop working in order to focus on your or your loved one’s recovery. If that time comes, the last thing you want to think about is how much that time off will cost you. But with a protection plan in place like Trauma insurance, you can have assurance that, if an event ever did occur, you could be secure financially and focus on your recovery.
Paying for time off work is not only how you could use this lump sum payment. Our National Insurance Lead, Willie Moala, has witnessed some creative ways around how clients have used their claim payment. He explains:
“I had a client who was sadly diagnosed with a rare form of cancer where there were no treatment options for him in New Zealand. Thankfully, there was a large trial happening overseas looking into the efficacy of a treatment for this very specific cancer. Their condition qualified them to participate in the programme, but it was costly. So, they used their lump sum payment to contribute to the cost of travel and the treatment itself.”
“The best part with Trauma Insurance is, there are often no restrictions or rules around how you use this payment. If your diagnosis meets the long criteria list of critical conditions, you will get that payment no matter how you plan to use it,” Moala concludes.
Unfortunately, at times there is no treatment. While we often hope for the best, a critical condition could lead to the worst-case scenario. With that may come a list of regrets of what you wish you did differently in life. Here is an example of how a trauma insurance payout helped one of Moala’s clients tick off a big bucket list item.
“My client came to me to get an understanding of what her policy could do for her. She was unfortunately diagnosed with Stage 4 Breast Cancer and, while positive at the time about her recovery, she had deep regrets about not taking her husband to see her hometown in Europe.”
“When I looked at her protection plan, I could see that she had taken out a Trauma policy. We were able to work with the insurer to get her claim paid out quickly. The amount she was insured for helped cover the cost of her travel for both her and her husband. She sadly passed away not so long after her trip. But thanks to the foresight and planning around her insurances, she was still able to experience her husband seeing where and how she grew up in her hometown before she passed on.”
These stories remind us that good health is not always promised to us. It can be easy to put financial planning off while you’re young, healthy, and carefree, but inaction comes at a cost too. Trauma insurance can allow you to live your life and navigate through the many phases of sickness and health with secure peace of mind.
With many options available to you, we know that choosing a suitable plan fit for your circumstances can be challenging. That’s where our team of expert advisers are more than happy to help.
If you would like to learn more about how Trauma Insurance can fit into your broader financial plan, reach out to us today. Email us at hello@advicefirst.co.nz to speak to an adviser.
