Trauma Insurance And TPD – Understanding Their Relevance
Accidents and illnesses can happen to you at any time, regardless of how careful or healthy you are.
Unfortunately, such events usually hamper your ability to work and earn an income, and if you are like most people, the ability to pay your bills would be your greatest concern.
Trauma insurance and TPD are meant to provide financial support in case you get a specified medical condition or if you become permanently disabled respectively.
How they work
Trauma insurance is meant to pay a lump sum amount when you receive a diagnosis for a medical condition that is specified in your policy. This cover could either compliment or supplement the income protection you may have. It will cover you for dozens of conditions, but the most common claims are for cancer, stroke and heart attack. Total and Permanent Disability Insurance (TPD) provides a lump sum amount when, after an accident or illness, you are diagnosed as unable to go back to work on a permanent basis because of the injuries sustained or illness.
Do you need both?
With TPD, you can only get your payout when it has been medically determined that you can never go back to work. This means that even if your illness, say cancer, kept you away from work for several months or even years for chemotherapy treatment, you would not get any payout if there was a possibility that you could eventually go back to work. Trauma insurance is therefore designed to make up for this shortfall so you can get the financial support you require during your recovery, visit us TPD Insurance website to know if you need both.
If you decide to take out both trauma insurance and TPD, you need to decide how to structure your insurance in the most cost-effective manner. You can bundle them together, which would make it easy to manage your policy. In this case, your protection would be in one policy and you would pay one premium monthly or annually, depending on your payment plan. However, a claim on either insurance would reduce the coverage amount that would be available for the other insurance.
You can also choose to purchase standalone policies for trauma insurance and TPD, which would mean that the policies would be separate and so would the premiums. The overall premium amount would be larger and you would have to manage each policy separately. However, getting your trauma and TPD policies from one insurance provider would facilitate easier management of the policies.
In both trauma insurance and TPD, the payout amount is determined when you first take out the insurance. Note that the premiums for TPD will probably be higher if you are in a high-risk occupation, such as building. Trauma insurance policies usually don’t cover pre-existing conditions. Ultimately, trauma insurance and TPD are meant to cover the potential outcomes of life’s hazards that are not covered by life insurance. This is why they are usually purchased together with life insurance or income protection insurance so you and your entire family are fully covered. However, as mentioned earlier, they could also be purchased separately. Read: Mortgage Protection Life Insurance