“I have been selling insurance for the last 23 years and talked about the risks but never dreamed it would happen to me
Just like many of my clients I restricted the amount of cover I had because even though 1 in 3 of us will get cancer before we turn 65 I knew I wasn’t going to be one of them.”
Check out the blog Alison coping with cancer
If you suffer an illness or disability (defined in your trauma policy) then a lump sum benefit would be paid to you. This would enable you to pay for anything you require; kill the mortgage, upgrade the house, modify it to meet your needs to make it easier for you and your caregivers to move around in, add a wing for nursing staff, purchase a more suitable car, pay for special treatment only available in another country; the list of possibilities is endless.
Trauma insurance cover could make up the difference between your pre-disability income and an income protection benefit payable from your insurance provider.
Trauma insurance gives a family options. Even babies can be covered for trauma insurance. $10,000 of trauma cover for a baby is only $1 when added to a parent’s trauma policy. $90,000 of trauma cover for a baby would only cost $9 per month when added to a parent’s trauma policy.
Note: The above trauma cover for babies is not standard on all trauma policies. You need to select a trauma policy that will meet the needs of you and your family.
How much Trauma Insurance should you have?
The only restriction on how much of this cover you take out is based on how much you are willing to pay.
Given the probability of a claim is one in three the premiums are far higher compared to life and income protection insurance. Some is better than none. More is better than some.
Dominion Post Article 4th May 2016
A 22 year old architectural student with melanoma. The drug Keytruda is not funded by Pharmac and costs $20,000 every three weeks, plus a $1,500 to $2,000 fee to have it injected. Total cost for treatment is estimated to be $300,000. Medical specialists estimate 20 to 30 people in New Zealand are paying for the drug themselves.
Update August 2016: Keytruda is now on the Pharmac approved drugs list. The point is that there are insurance companies providing medical insurance that will cover non Pharmac approved drugs or you can use a trauma insurance pay-out to finance yourself.