Disablement Process
The 'Disablement Process' is a concept that helps explain the relevance of each type of insurance. To cope with each stage of the 'Disablement Process' there is a type of insurance which provides financial assistance.
Life Insurance
Life Insurance will provide your family with a lump sum of money in the unfortunate case of your death in order to protect them against the financial burdens and hardship that might otherwise follow.
Total Permanent Disablement
Total and Permanent Disability (TPD) Cover provides a lump sum payment should you completely lose your ability to ever work again (or carry on your normal tasks, if you are not employed), as a result of illness or injury. TPD Cover is designed to help alleviate the significant financial impact that losing an income forever would likely cause.
Trauma Cover
Trauma Cover provides a lump-sum payment should you suffer one of the Covered Conditions listed by your provider. These could range from Cancer, Strokes, Heart Attacks, through to Dementia. The Covered Conditions are by nature serious and potentially life-threatening and, as a result, can have a significant financial impact. Trauma Cover is designed to help alleviate this financial impact.
Income Protection
Income Cover provides a financial safety net should you be disabled as a result of sickness or injury, and unable to earn your regular income. The monthly benefit is designed to replace a significant portion of lost income to help maintain your usual lifestyle during treatment and recovery.
Health Insurance
Health Insurance provides the funding to enable you to have private medical treatment whenever you require more immediate access or a broader range of treatment options than what is available to you through the public health system.
What is life insurance?
Life insurance is important but it can sometimes be complex.Insurance Cover and ACC
If you are self-employed or business owner, ACC and Private cover need to work together and set up properly from outset. Neither once should replace the other.What are PHARMAC and non-PHARMAC drugs?
PHARMAC drugs are the ones which are fully or part funded by the New Zealand government under the public healthcare system and that have been approved by Medsafe.
Some safe and effective drugs are Medsafe approved but not subsidised by PHARMAC. These are known as non-PHARMAC funded drugs. Hospitals and pharmacies have to pay full price for non-PHARMAC funded drugs, so if your client needs them for treatment, they’ll need to pay a higher price compared to subsidised drugs.
Some cancer treatments are very expensive and can cost more than $100,000. Are you prepared to be out of pocket by thousands of dollars should such a time come?
