Trauma or Critical Illness insurance provides a cash lump sum on the diagnosis of a medical condition. The number of conditions covered (benefits) varies widely, cheaper policies often offering fewer benefits. The most common claims under these policies are for: cancer, heart attack, coronary bypass and stroke, although other conditions can be covered.

Normally only ONE trauma benefit is ever payable to an individual under a policy - after a pay out you may become uninsurable and no longer able to buy Death, Total and Permanent Disability, Trauma or Income Protection cover from any insurer. So it is important to either purchase a buy back option or have sufficient cover to enable you to live out your remaining life on the proceeds of the claim. Buy back options are offered on some policies for an extra cost. If you purchase the option, you may, after a qualifying period of the benefit payment, re-purchase the death cover component.

Your trauma insurance premium will depend on how much and which cover you choose, and a range of factors such as age, gender, smoking status, health and occupation.

You can tailor the amount of Trauma Cover to suit your individual circumstances. In deciding how much cover you need, you should consider the costs of your living expenses, the medical costs associated with a serious illness, as well as rehabilitation costs.