What is ‘Trauma Insurance’?
The Value of ‘Trauma Insurance’
Protecting Your Financial and Emotional Well-being
Life is unpredictable, and unexpected events can occur at any time. Dealing with a serious illness or a traumatic health condition can be emotionally and physically challenging, but it can also have a significant impact on your financial well-being. This is where trauma insurance plays a crucial role. In this blog, we will delve into the value of having trauma insurance and how it can provide you with the much-needed financial security and peace of mind during difficult times.
Financial Security: Trauma insurance, also known as critical illness insurance, offers a lump sum payment if you are diagnosed with a specified serious illness or condition. This financial support can be used in various ways to alleviate the financial burden brought on by the illness:
Medical Expenses: Trauma insurance helps cover the costs associated with medical treatments, surgeries, hospital stays, medications, and therapies not covered by regular health insurance. It ensures that you have access to the best possible medical care without worrying about draining your savings or going into debt.
Lifestyle Adjustments: A critical illness may require you to make lifestyle changes, such as home modifications or specialised equipment. Trauma insurance can provide funds to adapt your living space or purchase necessary aids, allowing you to maintain your quality of life.
Income Protection: During your recovery period, you may be unable to work or face reduced working hours. The lump sum payment from trauma insurance can serve as a replacement income, covering your living expenses, mortgage or rent payments, and other financial obligations.
Giving you Peace of Mind
Financial Stability: Knowing that you have trauma insurance in place provides peace of mind, allowing you to focus on your recovery without worrying about the financial consequences. It offers reassurance that you and your loved ones will be protected during a challenging time.
Flexibility and Control: The pay-out from trauma insurance is in the form of a lump sum (within a few weeks) providing you with the flexibility to use the funds as you see fit. Whether it's covering medical bills, seeking alternative treatments, or taking time off work, you have the control to make decisions that best support your recovery and well-being.
Supplement to Other Insurances: While health insurance covers medical expenses, trauma insurance complements it by addressing the financial implications of a critical illness that may not be covered by traditional policies. It acts as an extra layer of protection, filling the gaps and ensuring comprehensive coverage.
Investing in Trauma Insurance helps with safeguarding your financial future and emotional well-being. It provides a vital safety net during challenging times, ensuring that you have the necessary funds to cover medical expenses, adapt your lifestyle, and maintain financial stability. With trauma insurance, you can focus on your recovery without the added stress of financial burdens. Remember, it's always better to be prepared and protected than to face uncertainty unprepared. In addition to this, in NZ 37% of people with Trauma cover make claim as opposed to only 16% claims for Life Insurance!