Do I Need TPD Or Trauma Insurance

Do I need TPD or Trauma Insurance?

It’s a pretty common question actually. Nearly all Super Funds offer “TPD” insurance, or Total and Permanent Disability Insurance. TPD insurance covers you if you suffer a circumstance where you cannot ever work again.

As you might imagine something that stops you from “ever working again” would have to be pretty serious. You would be right, it could a catastrophic accident, or something very terminal, below is the recent claims experience for Asteron:


It is really important to note that two doctors have to agree that, in their opinion, the condition will prevent you from ever working again.

Trauma Insurance, on the other hand, allows you to make a claim based on being diagnosed with a specific illness. So, it does not matter that you can or can’t return to work. In fact many claimants on Trauma Insurance do return to work quite quickly, but this does not affect their claim.

Which type of cover do you need? Often it is a combination of both but it is important that you get some good advice around this type of cover because getting it wrong can be pretty expensive.