Understanding the Different Types of Personal Insurance
When life takes an unexpected turn—be it illness, injury, or even loss of life—having the right personal insurance in place can make all the difference. But with so many options out there, it can be confusing to know which type of cover is right for you and your family.
At New Vision Financial Services, we believe in empowering Kiwis with knowledge to make confident decisions about their financial protection. Here's a breakdown of the key types of personal insurance and how each one works.
1. Life Insurance
What it does: Pays a lump sum to your loved ones if you pass away or are diagnosed with a terminal illness.
Why it's important: Life insurance provides financial stability for your family during an incredibly difficult time. It can help cover things like mortgage repayments, everyday living costs, funeral expenses, or even future education for your children.
2. Trauma Insurance (Critical Illness Cover)
What it does: Pays a lump sum if you're diagnosed with a serious illness like cancer, heart attack, or stroke.
Why it's important: Trauma cover gives you the financial freedom to focus on recovery, not bills. Whether it’s taking time off work, paying for treatment, much needed family holiday, or modifying your home, this lump sum helps ease the burden during a health crisis.
3. Income Protection Insurance
What it does: Replaces a percentage of your income if you’re unable to work due to illness or injury.
Why it's important: For most of us, our income is our biggest financial asset. Income protection ensures that if you’re off work for a period of time, you can still meet your financial commitments and maintain your lifestyle while you recover.
4. Total and Permanent Disability (TPD) Insurance
What it does: Pays a lump sum if you become permanently disabled and are unable to ever work again.
Why it's important: A severe injury or illness that results in permanent disability can be life-altering—not just physically and emotionally, but financially too. TPD cover helps you adjust by funding medical needs, rehabilitation, and long-term support.
5. Private Medical Insurance
What it does: Helps cover the cost of private healthcare services, including specialist appointments, surgery, and diagnostic tests.
Why it's important: In New Zealand, the public health system is great—but wait times can be long. Medical cover allows you to access faster treatment and have more control over when and where you’re treated.
Which Insurance Is Right for You?
There’s no one-size-fits-all approach. The best cover depends on your personal circumstances—your income, debts, family situation, health, and long-term goals. Often, a combination of these policies offers the most complete protection.
Let’s Talk About Your Protection Plan
Our role at New Vision Financial Services is to help you navigate these options and create a personalised insurance plan that protects what matters most. Whether you're starting fresh or reviewing your existing policies, we're here to make sure you're covered.
Because peace of mind isn’t a luxury—it’s a plan.
Amy Callon
Financial Adviser
New Vision Financial Services
Plan your future and let us help you have peace of mind along the way.