Understanding the distinctions between trauma insurance, critical illness insurance, and total permanent disability (TPD) insurance is essential for making informed decisions about your financial protection.

Trauma insurance is often called critical illness insurance. This type of cover pays a lump sum if you’re diagnosed with an illness or condition listed on your policy, such as cancer, heart attack or stroke.

The payout can be used for medical treatment, mortgage payments, living expenses, or any other financial needs while you recover. Trauma insurance does not require proof of income or working hours, making it accessible to individuals who may not qualify for income protection due to insufficient earnings or not working enough hours.

Total Permanent Disability (TPD) insurance provides a lump sum payment if you become permanently disabled due to illness or injury and are unable to return to work.

The payout can be used for home modifications, debt repayment, living expenses, and ongoing medical bills. This insurance covers disabilities that prevent you from working in any occupation or your usual occupation, ensuring long-term financial support.

Understanding these differences can help you select the right type of insurance based on your individual needs and circumstances. We recommend consulting with one of our expert financial advisers who can evaluate your situation and suggest the most suitable product for you.

This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request