Jayalakshmi Vasudevan, a reader from Wellington asked AIA New Zealand, “What is Trauma Insurance? What are the circumstances under which a person can claim under this Policy?”
An AIA official replied:
Trauma Insurance pays a lump sum (agreed at the time of application) if the Life Assured suffers from a specified critical illness.
Vulnerable women
Trauma Cover is a vital part of any risk plan, regardless of whether you are the main breadwinner or not. Figures have shown that women are five times more likely to make a trauma insurance claim than a life insurance claim.Customers often underestimate the replacement costs of housekeeping and child caring duties which are often managed by the maternal member of the family, not to mention medical costs, house hold bills, credit card debt, and mortgage or rent repayments.
Trauma Cover is ideal for those who simply would struggle financially if they were diagnosed with a serious condition and unable to work for a period of time.
The Benefits
The benefits of Trauma Cover are (a) It provides a lump sum that could be used to repay debt (b) It may be used to pay for alternative treatment (c) It may cover the costs of home help or childcare if one parent is critically ill and (d) It can help to relieve financial pressures and stress
This is a new column which will answer or provide clarifications on issues relating to insurance from AIA New Zealand, which is a member of the AIA Group and Sponsor of the ‘Best Financial Advisor’ (Mortgage & Insurance) Category of the Indian Newslink Indian Business Awards 2015. Readers may write to editor@indiannewslink.co.nz
A copy of AIA New Zealand’s disclosure statement is available upon request or at aia.co.nz.
