If you’re suffering from a serious illness, or are recovering from a major injury, the last thing you want to be worrying about is money. Trauma insurance can make sure that doesn’t happen.
That’s because trauma insurance provides a one-off, lump-sum payment if you’re diagnosed with a critical illness, like cancer, heart attack, stroke, Parkinson to mention a couple of illnesses covered.
TPD insurance pays a lump sum if you become totally and permanently disabled because of illness or injury.
Each insurer has a different definition of what it means to be totally and permanently disabled. It can cover you for either:
- Your own occupation — you’re unable to work again in the job you were working in before your disability. This cover is more expensive and is usually only available outside super.
- Any occupation — you’re unable to ever work again in any job suited to your education, training or experience. This cover is cheaper but has a higher threshold to claim, so it’s less likely to pay out.