Wondering how trauma insurance differs from TPD cover? You’re not alone. Despite some superficial similarities, TPD and trauma insurance serve different purposes. Understanding trauma insurance vs TPD is essential when exploring your right to disability compensation.
TPD Compensation Lawyers can evaluate your super insurance and other benefits to determine what entitlements you may have. Our team can help you lodge a TPD claim and maximise your payout.
Call 03 9966 7188 today for a FREE consultation. TPD Compensation Lawyers serve clients throughout VIC from our office in Melbourne.
What Is Trauma Insurance?
Also known as critical illness insurance, among other names, trauma insurance pays a lump sum if you are incapacitated by a physical injury or illness. It can help offset financial burdens such as:
- Loss of income
- Out-of-pocket medical expenses
- Daily living expenses, monthly bills, and more
- The cost of specialised aids and equipment
- Medical-related transportation and travel
- Home and vehicle modifications
Recovering from a serious injury or illness is difficult. In some cases, a complete recovery might not be possible. Having trauma insurance cover provides peace of mind should you and your family ever face these challenges.
Is Trauma Cover the Same as TPD?
Trauma insurance is different from Total and Permanent Disability insurance, or TPD. One of the biggest differences is that TPD is generally included in superannuation insurance, while trauma cover needs to be purchased separately. (Prior to July 2014, some super funds did offer trauma insurance; check your insurance to see if you’re covered under an older policy.)
Another big difference is that trauma insurance only covers certain conditions. The conditions covered by trauma insurance are specified in the product disclosure statement provided by your insurer. It is also important to note that trauma insurance does not cover mental health conditions (although TPD may cover mental illnesses).
Generally speaking, trauma insurance covers:
- Cancer
- Heart attack and heart disease
- Brain injuries
- Neurological disorders
- Lung disease
- Kidney failure
- Loss of hearing, vision, or speech
- Severe musculoskeletal disorders
- Advanced diabetes
- Liver disease
- Digestive illnesses
- Loss of limbs
People with these conditions—and others—may also be eligible for TPD compensation. Experienced legal professionals can evaluate the available insurance cover, provide knowledgeable advice regarding trauma insurance vs TPD (as well as other benefits), and assess your eligibility for a payout.
What Is TPD Insurance?
Total and Permanent Disability insurance pays a lump sum if the policyholder becomes disabled due to an injury or illness. Unlike trauma cover, eligibility for TPD is not limited to specific illnesses or injuries. Rather, TPD insurance only pays if you are completely prevented from working.
Basically, trauma insurance can help with the short-term effects of an accident or serious illness while TPD insurance can help with the long-term ramifications of being unable to work.
Types of TPD Insurance Cover
So what exactly constitutes a disability? The definitions used by TPD insurers vary, but there are several different categories of cover for Total and Permanent Disability:
- ‘Any Occupation’: This is the standard TPD cover provided through super insurance. It only pays if you can show that you cannot perform any kind of work.
- ‘Own Occupation’: A more comprehensive policy that pays if you can’t work in your chosen field. If you have ‘Own Occupation’ cover, you can work in a different profession or capacity and still claim a TPD entitlement.
- ‘Activities of Daily Living’ (ADL): Disability is determined based on your ability to live independently rather than occupational capacity. An ADL policy pays if you are unable to perform certain daily tasks, such as feeding yourself, dressing yourself, grooming yourself, etc.
Read More: Any Occupation vs Own Occupation Cover
Many people struggle to understand the differences between these policies, and the insurance companies don’t make it easy. We encourage you to seek legal counsel to gain a thorough understanding of your Total and Permanent Disability insurance.
When Can I Make a Claim?
Both trauma insurance and TPD insurance have waiting periods before you can claim a benefit. With trauma insurance, you usually need to wait 90 days from the start of the policy before making a claim.
For TPD claims, the waiting period is a little more complicated. Instead of the date the policy begins, the waiting period starts on the date a Total and Permanent Disability renders you unable to work. Super insurers usually require claimants to wait 6 months before applying for TPD, while other policies may have a different waiting period.
The date you stopped work is a critical consideration in any TPD claim. Your TPD claim may be rejected because the insurance company argues that you didn’t satisfy the waiting period. A capable TPD lawyer can help ensure that all important dates are documented, including the date of diagnosis, the date you stopped work, etc., as well as manage any disputes.
Don’t Wait; Get Help with Your TPD Claim Today
You may be entitled to multiple benefits if you suffer an injury or become severely ill. Understanding your insurance cover is essential for obtaining all of the compensation you deserve.
At TPD Compensation Lawyers, we pride ourselves on helping clients pursue entitlements with confidence. Though Total and Permanent Disability claims make up the sole focus of our law firm, we can address questions about trauma insurance vs TPD at your FREE consultation.