As insurance brokers, we are familiar with the occurrence of the unfortunate, the unfair, the unexpected. One of the worst examples of these is child sickness. A child being diagnosed with a terminal disease, or encountering a formidable medical challenge, is one of the most devastating things that can happen to a family. Illness, unfortunately, does not discriminate between the young or old, the weak or the strong. So, the question is, how can you – as a guardian – be prepared?
Luckily, insurance isn’t just for the adults in New Zealand. While the same range of policy options available to adults does not apply to children, you can insure them with two kinds of cover: Medical Cover and Trauma Cover. In this blog we’re going to walk you through both types, so that your child is protected in the event of a major medical emergency.
Medical Cover for Children
Let’s begin with medical cover. In New Zealand, we have a great medical emergency response system – one of the best in the world – but if your child’s condition isn’t emergent then you might have to endure a large waiting list for ‘elective’ surgery. Even if it is an emergency, the cost of hospital stays and emergent care is fairly sizeable.
Medical cover can help in both of these situations. If you would rather go through the private health system, your policy can provide you with the monthly stipends needed to take your child to see a private surgeon and go through treatment. If you decide to stick with the public health system, the costs will stay with you – and they can pile up much faster than expected. Struggling to pay medical bills is a terrible situation to be in, but if you make sure to have the appropriate medical cover policy for your child you can ensure that those bills will decrease in size.
Trauma Cover for Children
Secondly, we have trauma insurance. When a child is diagnosed with a major medical condition, this can result in a huge amount of trauma for both that child and their family. Aside from the substantial emotional impact of potential loss, families and parents also have to deal with the repercussions of financial stress. Trauma insurance is a lump sum payment that helps to negate the financial aspect of a family’s ordeal, aiming to give your family help during such a terrible time.
In New Zealand, if you have a trauma insurance policy that covers yourself, then you are able to find insurers who offer free trauma cover for your child up to a certain amount – usually around $50,000. This money can be used to contribute to medical bills, caregiving, or to allow parents to take time off work to look after their child without the threat of further financial hardship.
The truth is, no one wants to consider that something like this might happen to their child. But, in reality, the possibility exists. There are products and policies out there that can protect both you and your family in the unfortunate event of a major medical diagnosis, so if you’re looking for the right one, we are always happy to help.
Make the best choice for your family.
If you are debating whether you should purchase a policy or not, or if you’re trying to decide on the right one, talk to the experts at Rethink. We are a team of insurance specialists and mortgage brokers in Auckland, dedicated to helping people understand their options to prepare for the future. We’re always happy to help, so get in contact with one of our friendly team today!