Stepped vs Level Insurance Premiums

For insurance such as life, total and permanent disability or trauma cover, you may be able to choose between stepped or level premiums.

Understanding stepped and level premiums is vital to determine just how much money you’ll pay over time on your insurance policy. At Finluca we want to make sure you have the best option for your requirements.

How do I know which premium is right for me?

Getting the right premium from the beginning ensures that you’re getting the optimal Insurance policy for your circumstances.

Here at Finluca we take the time to review your situation to ensure you are on the right kind of premium.

Watch our video for an easy to understand overview of how Stepped and Level Premiums work

Trauma Insurance – Cover for Critical Illnesses

Insurance is all about preserving your standard of living. A major health issue can take its toll on your time and savings – potentially making it difficult or impossible to work. If this happens, you will need to find a way to support yourself and your family. Trauma cover can provide a financial safety net for such events.

Trauma insurance provides cover if you are diagnosed with a specified illness or injury. It covers 44 medical events, conditions and surgical procedures including many types of cancer, heart attack and stroke.

Most people use Trauma Recovery Insurance for:

  • Pay for their spouse or family member to take time off work, so they can provide support and care at home
  • Pay for additional or alternative treatments that may not be covered by the New Zealand health system or health insurance
  • Cover additional expenses such as childcare and travel to medical appointments
  • Reduce debt such as mortgage or credit card payments
  • Take time off work to rest and recover – often choosing to work reduced hours
  • Aid recovery by treating themselves to something that makes them happy, such as going on a family holiday

Some Trauma Insurance benefits you may not know about

Trauma recovery
Pays a lump sum if the medical event, condition or surgical procedure you experience meets the claim criteria.

Early stage cancer cover
Some of your cancer cover is paid out early to help with your treatment.

Financial planning
It covers professional advice from an approved financial planner to help your family decide the best way to use the money they will receive.

Grief support
We will pay to help with the cost of professional grief support during the grieving process.

When deciding if you need trauma cover, think about

  • Your level of private health insurance
  • Other types of life insurance you have
  • How much income you and your family will need to live if you can’t work for a while or forever
  • What help or family support is available to you
  • If you are working, to investigate income protection insurance as this may better suit your needs

Answers to these questions is not an easy task but that’s where Finluca Life & Health Insurance Advisers comes in. We offer independent advice to get the right mix of insurance to suit your personal circumstances.

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What does non-aligned mean?

Finluca Life & Health Insurance Advisers is non-aligned so we can give unbiased advice on the best policies for your needs. This means our clients come first, not the insurances companies which supply the policies. We are not restricted to one insurance company – we work with all the major insurance companies enabling us to select the right company and policy that suits your needs.

Savings to be made on ACC Levies

There has been a significant drive to save money on ACC Levies via Coverplus Extra (CPX), by reducing the compensation to the minimum (min $22, 880 max $94, 553 -2014/15)
Although not adverse to this, we do recommend clients get professional advice specifically due to the additional risk this may incur, there are four main considerations:

  • Reduced Fatal entitlements (accidental death), paid as a weekly benefit to the family; the difference in lost benefit (changing from maximum to minimum levels) for a young family could be greater $1.35Million
  • Significantly reduced weekly compensation until income protection kicks in (typically 4-13 weeks). Can you afford to find over $15,000 in lost compensation over 13 weeks until your private insurance starts paying a claim?
  • No cover for excluded pre-existing conditions on private cover (e.g. Back excluded)
  • Most income protection policies are reduced by any benefit received from ACC

With on average *39% of male claims are accident related (*51% Blue Collar), as advisers we make sure you are aware of the risk and that your private policy works with ACC, not against it.
* Gen Re Reinsurance experience 2004-2008