Although there is only 1 type of Total and Permanent Disability Insurance in Australia, there are various types of disability insurance plans available to Australian residents.

Some of the types of disability insurance plans offered by insurers include:

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• - critical illness cover
   
• - income protection insurance cover and
   
• - TPD insurance.
   
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  TPD Insurance

TPD insurance will ensure that you get 1 lump sum payment if you cannot work permanently due to an injury or accident. To be eligible for TPD insurance, you have to be off work for at least 3 – 6 months.

The compensation payment you receive can be used to pay bills, debts and other debts. TPD insurance may be offered as a standalone policy or may be offered as an additional policy with life insurance plans and income protection plans.

Income Protection Insurance

Income protection insurance will ensure that you get monthly compensation payments from the insurance company of your choice if you cannot work temporarily due to problems that include sickness and disablement.

These plans have a benefit period that will determine the number of months or years you will get the selected benefits that are offered by the insurer.
 

Trauma Insurance ( Critical Illness Insurance }

Trauma Insurance or Critical illness insurance will ensure that you get a onetime compensation payment if you are diagnosed with a terminal illness that includes heart attacks and cancer. The compensation payment will most likely be given to you when you are diagnosed with the condition, and this payment can be used to help you and your family financially during a stressful time.