By Robyn Bartlett
Product Manager, Asteron Life
Trauma insurance is a useful insurance product, but not one that many people think of when they think of life insurance.
It pays out a lump sum if you suffer one of the specified serious illnesses or major surgical procedures. You can choose your own sum insured and how to spend the benefit if you claim on it.
Restoring your cover if you make a claim
Normally it’s only possible to claim once on your Trauma insurance, and after that it’s gone.
But you can choose to add a reinstatement option to your Trauma cover. That means that you can re-purchase Trauma cover 12 months after you make a claim, in case you need it again for a different illness or injury.
If your cover is accelerated, you may also be able to buy back the amount of life insurance cover that was reduced, 12 months after your claim.
Buy back and reinstatement are both optional extras on your policy, so it’s a good idea to talk to your adviser about what you need and how much it will cost.
Is Accelerated or Stand Alone Trauma right for you?
Stand alone Trauma cover will give you more certainty over your life insurance, as well as an extra pay out if you suffer from one of the specified conditions.
But if you’re on a budget, accelerated cover can be a more affordable way to add a trauma benefit to your policy. If you do choose an accelerated option and you make a claim, you’ll need to remember that your available life insurance cover has reduced and take that into account in your financial plans.