Life Insurance vs TPD, Trauma and Income Protection
- Life insurance generally pays a death benefit to your beneficiaries on death or another specifically covered event, depending on the policy.
- TPD insurance can pay a benefit when the policy’s definition of total and permanent disability is met.
- Trauma insurance generally pays a lump sum if you’re diagnosed with a specific medical condition or event listed in the policy.
- Income protection insurance generally replaces part of your income if a covered illness or injury stops you working, subject to the waiting period and benefit period.
These products differ in benefits and eligibility. Check each product disclosure statement.