WHAT IS TRAUMA & TPD??
Basically Trauma cover will pay out if you suffer from a specified medical event outlined in your insurers Product Disclosure Statement (PDS). There are up to 45 medical definitions that Trauma benefit applies to depending on your level of cover, a few main ones are:
- Heart Attack
- Coronary Bypass Surgery
- Accident (head trauma, burns etc.)
Trauma cover pays a lump sum benefit to you which can be used to pay for medical bills, making lifestyle changes, time off work & focusing on getting you better!
Total & Permanent Disability (TPD)
TPD generally only pays if you are unable to work again, depending on your level of cover. The benefit is paid in a lump sum or a monthly instalment to you in the event of a successful claim. This product is designed to replace your income to support you & your family for an extended period, it can also help with medical bills you may have accrued due to your disablement.
TPD offers different levels of cover allowing you to choose between standard & comprehensive options. The two main types of cover are ‘Any’ occupation which is a standard/basic type of cover and ‘Own’ occupation is the comprehensive option which includes a wider-range of benefits & features.
‘Any Occupation’ basically means that you will never be able to work in any occupation again. You need to be deemed unfit to work again by medical professionals before the insurer will consider paying out the benefit.
‘Own Occupation’ is a more comprehensive option in addition to the ‘Any’ option. This feature is job particular where it would be unlikely you will ever work in your specified occupation again. You could still work in another job position.
SO WHAT’S THE DIFFERENCE??
The main difference between Trauma & TPD is that Trauma pays out at the time of a specific medical event, the benefit can help to get you back on your feet & back to work. TPD however, pays if you cannot work in any or your specified occupation again regardless of the cause of disability.
Trauma & TPD insurances can be paid out at the same time if you meet your insurer’s defined definitions. Your financial adviser can help you determine whether you have a legitimate claim for both of these covers.