The debts don’t stop.
A payout can help the business stay afloat.
When it comes to serious medical issues or illness, you can’t afford to muck around. Nobody wants to have to think about this stuff, but you probably won't be able to work as usual, and your care costs can mount up quickly. Trauma cover takes away a lot of the financial pain, so you can focus on getting better while covering medical and recovery costs – and keep your business supported.
Trauma cover for business pays out a lump sum if you suffer from a serious illness that you’re insured for, like a heart attack, cancer, stroke, angioplasty and more.
It’s a great way to take off some of the financial pressures. And if it’s a serious illness which means that you are unable to return to the business, the funds can be used to repay debt or if a transfer of shareholdings is needed.
You pay an amount of money (called a ‘premium’) for a policy. The policy is a contract so you know exactly what we’ll pay out for. As long as you keep paying for your insurance with us, and the policy terms and conditions have been met, we’ll pay out for everything we agreed.
With business growth comes increased risk. You can increase the value of a person’s cover when certain financial changes happen in the business before the age of 55 without needing to give us medical evidence (check out the info sheet for details, there are a few conditions). While medical evidence isn’t needed, we will need to see financial evidence to support the need for the increase in cover. (You can increase your cover at any time up to age 75 though, but we may need to do health and financial checks.)
We’ve compiled a list of the most commonly asked questions about this cover.
For a good overview of the ins and outs, it’s worth reading the info sheet.
Yes - you’ll need to be between 16 and 64 if you want this cover on its own – or 69 if you’re taking it out as an accelerated benefit with your Life insurance (otherwise known as Life assurance) – meaning any payout will be deducted from your total Life insurance cover amount.
Standalone cover (which won’t affect the total amount covered by your Life assurance / Life insurance cover) lasts until you’re 70 – while an accelerated benefit (see above) lasts for life.
$2 million – either as a standalone benefit for as an accelerated benefit that’s taken from your Life insurance (otherwise known as Life assurance).
A few conditions aren’t covered for the first three months after you’ve taken out your cover. You can find these by taking a look at your policy documents.
You can pay fortnightly, monthly or annually – whatever works best with your budget.
At the start of the policy you can choose whether you want your premiums to increase each year (called Yearly Renewable Term) or be fixed for the life of your policy (called Level Term).
With Yearly Renewable Term, your premium increases each year based on things like your age, gender, smoker status and your amount of cover. You’ll receive a note letting you know your adjusted premium.
With Level Term, the premiums start out a bit higher than yearly renewable, BUT the amount you pay remains the same for the term of the policy.
A combination of Level Term and Yearly Renewable Term can help provide flexibility and certainty. Ask your adviser about this, or give us a call.
All of your children (by birth or adoption – aged between 2 and 20) are covered for either $50,000 or 20% of your cover amount (whichever’s the lower amount) if they experience any of the conditions outlined in your policy – provided they weren’t actually born with that condition. You can find out more about the ins and outs of this benefit in the info sheet.
There are certain events where you can increase your Trauma cover without the need for more medical evidence up until you reach 55. With Trauma cover for business there’s a benefit automatically offered under your policy which allows you to increase up to certain limits should the person’s value to the business, their financial interest in the business, or loan guarantee increases. If you’re likely to need more cover in the future than what this benefit offers, you can also take out the Business Future Insurability Option. You can find out more by taking a look at the info sheet.
If you have bought ‘Trauma Reinstatement’ option you can start up your trauma cover again 12 months after you’ve made a claim – but you won’t be able to claim for the same condition twice. There are a few other conditions as well – so it’s worth reading over them in our info sheet.
* Fidelity Life has an A- (Excellent) financial strength rating from A.M. Best. The rating scale that this rating forms part of is available for inspection at our offices. For more information please visit fidelitylife.co.nz/about-us/our-financial-strength/
Disclaimer – the information contained in this webpage is a convenient summary of the key points of this insurance policy and is general in nature. It is not, and is not intended to be, a policy document.
Details of definitions, benefits, standard exclusions/limitations, terms and conditions are contained in the full policy documentation which is available from your financial adviser. Please refer to current policy wordings for specific details. This webpage does not provide a personalised financial advice service.