Guide to TPD Insurance and Trauma Insurance Comparison
Trauma Insurance versus TPD Insurance
A range of insurance policies provides protection when you become injured or ill, including:
- Income protection insurance
- Trauma or critical illness insurance
- Total and permanent disability (TPD) insurance
Each insurance policy offers coverage for different circumstances when the unexpected happens. It is common for people to be confused when reviewing these insurance policies, as they can seem related and provide similar benefits. This blog seeks to remove some uncertainty by outlining the difference between trauma insurance and TPD insurance.
About Illness and Injury Insurance
Most working Aussies have insurance policies routinely given to them when they start contributing to their superannuation. These policies include life insurance, income protection insurance and TPD disability coverage. In Australia, your employer must contribute to your superannuation account, and your super fund pays your insurance premiums.
Typically, people rarely consider their mandatory insurance coverage until something goes wrong and they struggle with living expenses. When this happens, they are unsure if they already have financial protection.
Types of Financial Protection Insurance
If you’ve been injured and need help paying for your recovery, two types of insurance provide protection and help cover medical costs. One covers you against financial losses from an accident; the other includes compensation for lost income while recovering. These are called Trauma Insurance and Total Permanency Disability Insurance (TPD). They’re often confused, but they serve very different purposes.
When you have been severely injured or become ill, you must take the time to focus on your recovery rather than worrying about your financial position. In this case, trauma insurance can help.
Trauma Insurance Cover - What is it?
A trauma insurance policy (or critical illness policy) pays a lump sum if you’re seriously injured or have acquired a significant medical condition. You don’t need to make regular claims under a critical illness policy; it’ll pay out once you meet the requirements contained within your policy.
Trauma insurance policies pay a lump sum if you’re seriously injured or critically sick. Your medical condition needs to meet the ailments listed in the terms of your critical illness cover.
How does TPD (Total and Permanent Disability) Insurance work?
If you become physically injured or ill or acquire a psychological condition and cannot work in your usual occupation, you could claim a TPD lump sum payment. For the requirements of permanent disability insurance, how you became ill or injured is of no consequence. No predefined list of conditions qualifies you as having a total and permanent disability, but some ailments are more common.
are more common than physical injury, and common psychological issues include
- PTSD
- Bipolar disorder
- Schizophrenia
- Severe anxiety and depression
Common illnesses for successful disability claims include primary health conditions like:
- Diabetes
- Heart attack and strokes
- Alzheimer’s disease
- Most types of cancer
A broad range of physical injuries could stop you from working, including loss of a limb, paralysis, and reduced sight or hearing.
More about psychological injury claims >
It may seem that to qualify as having a disability, something significant needs to go wrong in your life. This is not always the case. To know where you stand, speak with one of our experienced insurance claim lawyers. It’s free to know if you can make a claim. Call Now: 1300 873 252
How does Critical Illness Insurance work?
Unlike TPD insurance, you cannot access trauma cover through your superannuation.
Instead, you must purchase trauma insurance or a critical illness policy via an insurance broker or financial advisor. Occasionally, your employer or union membership will provide recovery insurance as part of a package.
How do I get a Trauma Insurance Payout?
The terms of your policy determine how and when you receive a trauma insurance payout. There will be a list of predefined conditions within your insurance, which will likely be long. Some common medical circumstances that qualift for a trauma claim include:
- A wide range of Cancers
- Heart Attack
- Parkinson’s Disease
- Head trauma
- Loss of Sight
- Alzheimer’s
- Diabetes
- Brain Tumours
To understand if you qualify for a payout, please seek legal assistance to meet the terms and conditions of your policy.
Can I Make a TPD Claim and Trauma Insurance Claim?
The simple answer is yes, you can. A medical situation that qualifies for a trauma insurance payout is highly likely also to meet the conditions for a TPD disability payout. If you have paid funds into multiple superannuation accounts during your lifetime, you could also have more than one Total and Permanent Disability claim.
To understand more about how many lump sum payments you could receive and how much they might be worth, speak with one of Aussie’s friendly legal team now.
Understanding the T&Cs of your Trauma Insurance Policy
Your critical illness or trauma insurance will contain a list of medical definitions. It is typical for each of these to have a qualifying condition. For example, you might need to meet or exceed a severity level of illness, require your situation to be permanent, or be reassessed after a period.
Insurance companies don’t enjoy paying a lump sum benefit. It is usual for them to try to minimise or deny your case. Aussie Injury Lawyers have years of experience dealing with insurers and their techniques for denying your entitlements. Rely on our 99% claim success rate to choose Aussie for your case.
Conclusion
Trauma insurance and TPD insurance are both types of insurance that help cover medical expenses but provide different types of protection for when life goes wrong. If you’re:
- Unsure which kind of policy is best for your financial situation
- Or have any other questions about the differences between critical illness insurance and TPD insurance
You can contact a financial adviser or our legal team now. The friendly team at Aussie Injury Lawyers can help you understand your legal options and how to access all your insurance benefits. Call Now: 1300 873 252
TPD Vs Trauma Insurance FAQs
- Income protection insurance
- TPD cover
- Life insurance policy
- Trauma policy
- Critical illness cover
- Funeral insurance
- Death cover
Trauma cover pays a lump sum amount for specific medical conditions listed in the policy terms. It does not cover all illnesses, injuries or accidents, which is its primary disadvantage.