It's unfortunately common to face a trauma such as a serious illness or injury at least once in your life. Trauma Insurance is designed to pay you a lump sum of money to manage the financial impact if you or one of your children were to face one of these events.
We often experience financial hardship as a result of a serious illness or injury to ourselves or a family member. Having trauma insurance can provide much-needed financial support to cover whatever you need, like taking care of medical treatment and rehabilitation costs, or simply allowing you financial breathing space to enable you or your family members to recover and be together, instead of at work.
AIA Living Progressive Care is an innovative trauma insurance that allows you to make multiple claims, based on the severity of your illness or injury. You'll be covered for 70 defined medical conditions across five categories: Cancer, Heart and Arteries, Brain and Nerves, Loss of Function, and Other Health Events.
Benefits Included
Medical Advancements Provision
If the medical diagnostic techniques and investigations used in our definitions of medical conditions have been superseded due to medical advancements, we will consider these when assessing your claim.
Severe Illness or Injury Benefit
This benefit aims to offer protection if you suffer a major medical condition that isn't specified in the policy wording, but meets our definition of a severe illness or injury.
Children's Trauma Benefit
This benefit provides you with some trauma insurance for your children. If a child of the life assured suffers a covered condition, this benefit will pay 50% of the sum assured (up to $50,000). Importantly, the payment of this will not reduce the amount of any trauma insurance remaining for the life assured. The Children's Trauma Benefit is payable once per child across all AIA policies. A 14 day survival period applies. Exclusions apply for any congenital or pre-existing conditions.
Newborn Children's Benefit
If a child of a life assured is born with one of five specified congenital conditions and survives for thirty days after birth, this benefit will pay 50% of the sum assured (up to $50,000). The payment of this benefit will not reduce the amount of any trauma insurance remaining for the life assured. Please note that AIA will pay one claim per child under either the Newborn Children's Benefit or the Children's Trauma Benefit across all AIA policies. The Newborn Children's Benefit is payable once per child across all AIA policies. A 12 month stand down period applies.
Financial and Legal Advice Benefit
This enables you at claim time to access financial and legal advice from an AIA approved financial adviser or legal professional. AIA will reimburse you for fees up to $2,500 (incl. GST). This is a one-off payment across all AIA policies for each life assured.
Return Home Benefit
If you're outside New Zealand and suffer one of the critical conditions for the first time, you could access up to $10,000 towards the cost for you and a support person to return home.
Counselling Benefit
We will pay up to $2,500 (incl. GST) to cover the cost of a Psychiatrist or Psychologist consultation and counselling for you and/or your family where the treatment directly relates to a claim.
Parents Grieving Benefit
If the worst should happen to your child and they pass away, we'll help with associated expenses. We will pay you $2,000 for children aged under 10 years and $15,000 for children between 10 and 21 years of age.
Children's Trauma Conversion Facility
Upon reaching 21 years of age the Built-in Children's Trauma Benefit or Optional Children's and Maternity Benefit can be converted to a trauma insurance adult policy without any further medical evidence required, except where there is an increase in cover.
Standalone Conversion Facility
You may convert your standalone trauma insurance to be accelerated with an equal amount of Life Cover without any further medical evidence. Conditions apply.
Premium Conversion Facility
Before reaching the age of 65 years, you have the option to convert all or part of your sum assured to a level premium structure without further medical underwriting.
Future Insurability Benefit
You can apply to increase your sum assured at every third policy anniversary without providing any further medical information. Limits and conditions apply and every increase in cover will result in an increase in premium.
Special Events Increase Facility
Enables you to increase the sum assured under your cover following a significant event in your life which results in increasing financial responsibilities. These significant events include: having a child, your child starting secondary school, taking out or increasing a residential home loan or receiving a salary increase and other major events.
Suspension of Cover Benefit
AIA provide the flexibility to suspend your cover for up to 12 months, without medical evidence if you meet the following conditions:
- Take parental leave
- Take leave without pay for any reason
- Get made redundant
- Become unemployed
- Experience at least a 20% reduction in pay (comparing the most recent payslip against a previous payslip from the same year)
- If self-employed, experience a 30% reduction in revenue (by comparing one month's revenue against the same month for the previous year)
No benefits will be payable for any claim event which occurs during this suspension period.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
