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Essential insurance for your personal and financial wellbeing

Are you considering ways to protect your personal and financial health?

Health insurance, trauma cover, and income protection are three important tools that can provide financial assistance or faster access to specialist care and diagnosis if you face serious health issues. Depending on your unique needs, you might consider one or all these options in combination.

Here’s what you need to know about each. 

The connection between health and financial stability 

Your personal and financial health are intricately linked, particularly when it comes to insurance options like health and trauma insurance.

No one likes to think about becoming seriously ill, but serious health conditions can significantly impact your life financially as well as medically. Conditions that result in extended periods off work or unexpected medical bills can strain your finances. 

While we can’t predict the future, having the right financial protection in place can mitigate the financial consequences of a severe illness.  

Speedier treatment with health insurance

Health insurance is designed to provide quicker access to specialist medical treatment and diagnoses. It can allow you to receive medical care when you need it, without the potential delays of the public healthcare system waiting list.

Depending on your situation, you might choose to cover major expenses (like specialist visits and elective surgeries), everyday medical costs (such as GP visits and dental treatments), or a combination of both. Some policies also provide cover for Med-safe approved medications that are not funded by Pharmac. 

With many options available, consulting with an insurance adviser can help you understand each one and determine what might be right for your needs and situation.

Financial support with trauma cover 

Trauma cover, sometimes also referred to as critical illness insurance, can provide a lump sum if you’re diagnosed with one of the serious illnesses or traumas specified in the policy. The conditions specified in the policy vary by provider but usually include events such as strokes, heart attacks, and many types of cancers.

The lump sum can be used any way it is needed, such as covering medical expenses or replacing lost income, helping you to focus on recovery.

Securing your income with income protection

While health insurance can expedite your recovery and trauma insurance offers flexible financial support, income protection is designed to replace some of your income if you’re unable to work due to a serious illness or injury. 

With most policies, you can replace up to 75% of your gross pre-disability income. You also choose an appropriate wait period (the time between when a doctor deems the person is unable to work before the policy begins paying out its benefits) and benefit period (the duration for which benefits are paid) based on your circumstances.

Many people in New Zealand rely on ACC for income protection, but ACC only covers accidental injuries. Income protection cover can provide cover if a serious medical issue prevents you from working.

Which cover is right for you? 

As insurance advisers, we can help evaluate your financial situation and help you understand the benefits of each insurance option. Contact us to determine the most suitable protection for your specific needs.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.