Life vs TPD vs Trauma cover: what's the difference?
Life, TPD and trauma insurance all pay a lump sum — but they cover very different events. Understand which does what.
A large share of Australians hold default life, TPD and sometimes income protection cover automatically through their superannuation fund.
The advantages
- Premiums are deducted from your super balance rather than take-home pay.
- Cover is often available without full underwriting.
- It can be a cost-effective baseline level of protection.
The trade-offs
- Default cover amounts may be lower than you need.
- Premiums reduce your retirement savings over time.
- Definitions can be less generous than retail policies.
Review your fund's insurance guide and compare it with retail options in our library.