Compare Life, TPD, Income & Trauma Cover
Four covers, four different jobs. Here is general information about what each one generally does, how it pays out and how it may be funded, so you can see at a glance how they differ. Features and availability vary between insurers and products.
| Feature | Life Insurance | TPD Insurance | Income Protection | Trauma Insurance |
|---|---|---|---|---|
| What it covers | Death or terminal illness, as defined by the relevant policy | Total and permanent disability that satisfies the applicable policy definition | Temporary illness or injury that stops you working | Diagnosis of a defined critical illness (cancer, heart attack, stroke, etc.) |
| How it pays | One-off lump sum to your beneficiaries, subject to policy terms | One-off lump sum to you, subject to policy terms | Monthly benefit that may replace up to around 70% of pre-tax income, depending on the product and eligibility | One-off lump sum to you on diagnosis of a covered condition, subject to policy definitions |
| Typical cover amount | Commonly $100,000 to $5M+, depending on the product, eligibility and underwriting | Commonly $250,000 to $5M+, depending on occupation, the product and underwriting | Commonly up to around 70% of monthly pre-tax income, where available and subject to policy terms | Commonly $50,000 to $2M, depending on the product and underwriting |
| Can pay from super? | May be payable from super, where available and subject to super rules | May be payable from super, where available and subject to super rules | May be payable from super in some cases (indemnity style), where available | Generally held outside super, with premiums paid personally |
| Premiums tax-deductible? | Generally not personally deductible. Tax treatment depends on ownership and your circumstances | Generally not deductible when held personally. Tax treatment depends on your circumstances | May be deductible when paid personally, depending on your circumstances | Generally not deductible when held personally. Tax treatment depends on your circumstances |
| Commonly considered by | Anyone with a mortgage, dependents or who wants to leave a legacy | Tradespeople, professionals and anyone whose income supports others | Employees, self-employed and anyone whose lifestyle depends on regular income | Anyone wanting a cash buffer for cancer, heart or stroke diagnosis, even if they recover |
Life Insurance details
Full overview
TPD Insurance details
Full overview
Income Protection details
Full overview
Trauma Insurance details
Full overview
Approved Product List
Our product comparisons are limited to the life insurance products available through our licensee-approved product list. We do not compare every insurer or insurance product available in the Australian market.
Products currently available through our approved product list: Neos Protection, Encompass Protection, Futura Protection, PPS Mutual.
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Use our free calculator for a general estimate of life, TPD, income protection and trauma cover levels in under a minute. General information only, not personal advice.
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Some people hold a combination of these covers, others only one. A short call is enough to explain how each type of cover generally works, at no cost and with no obligation.