Trauma Insurance and Total Permanent Disability Insurance, what’s the difference?

Trauma Insurance and Total Permanent Disability (TPD) Insurance can sometimes be confused as the same insurance, however they support you through rather different circumstances, which is why you may need both forms of insurance.

If you were to suffer a serious accident or illness, it’s important that you and your family are looked after.

This is where Trauma Insurance comes into play.

What is Trauma Insurance ?
Trauma Insurance protects you if you become critically ill, such as cancer, a heart attack, or are injured and require extensive medical treatment to recover.

Conditions covered include:

  • Major head trauma
  • Severe burns
  • Heart attack
  • Alzheimers
  • Blood disorders
  • Major Organ transplant
  • Cancer

Trauma Insurance provides a lump sum of money to cover immediate medical expenses and other financial needs when a critical illness or injury occurs.

Additionally, Trauma Insurance can only be paid through your personal cashflow.

Unfortunately though, despite the very best efforts of leading medical professionals, and your own sheer determination, there are some accidents and illnesses from which you can never recover.

In that case, you’ll be glad to have taken out Total and Permanent Disability Insurance.

What is Total Permanent Disability Insurance (TPD)?
TPD Insurance is designed to address this. It replaces your income with a lump sum amount if you become permanently disabled due to illness or accident and are unable to work.

Conditions covered include:

  • Spinal Cord Injury
  • Loss of a Limb
  • Motor Neurone Disease

Without your income, where would your family be in terms of debt repayments, paying for in-home support, or simply covering the cost of living for the next 10, 20 or 50 years?

Typically, there are 3 types of TPD Insurance available:

  • Any Occupation
  • Own Occupation
  • ADL/Non-working Occupation

Additionally, TPD Insurance can be paid out of your Superannuation and your personal cashflow

The difference
In a nutshell, Trauma Insurance funds the costs associated with getting you better and back to work.

But if your accident or illness is so severe that you can never return to work, TPD Insurance will ensure you and your family maintain a good quality of life.


If you want to know more about how to setup Trauma and/or TPD Insurance book in an appointment with us today.