Trauma Insurance, also referred to as Critical Illness or Recovery Cover provides a lump sum benefit in the event of a critical illness. The number of critical illnesses covered varies, depending on the Insurance company. Some insurers offer cheaper policies that offer fewer benefits. 

Trauma Insurance is designed to pay you a lump sum tax free amount in the event of suffering a traumatic illness such as Heart Attack, Cancer or Stroke. These funds can be used to pay for medical expenses and treatment, cover some of your lost income, pay down some of your debt and possibly even take a much needed holiday to recuperate.

These policies also have a Reinstatement Option as an extra feature which means that if you claim on your Trauma Insurance and the insurance has ceased, 12 months later the insurer will offer you the Trauma Insurance back again with no questions asked. The only difference is that you will not be covered for the condition which you initially claimed for. This is a handy feature.