Income Protection vs. Trauma Insurance: The Essential Australian Comparison You Need
Income Protection vs. Trauma Insurance: The Essential Australian Comparison You Need For many Australians, owning a home and building a Superannuation balance are the cornerstones of financial stability. But what happens if an unexpected illness or accident abruptly stops your income? How do you continue paying your mortgage, bills, and everyday expenses? This is where personal risk insurance steps in. Two of the most common and often confused policies are **Income Protection (IP) Insurance** and **Trauma (or Critical Illness) Insurance**. While both are vital safety nets, they serve fundamentally different purposes and pay out under drastically different conditions. Choosing the wrong one—or misunderstanding the fine print—could leave you dangerously exposed. Image Focus: Two distinct insurance policy documents side-by-side, with a question mark symbol between them. Section 1: What is Income Protection (IP) Insurance? Income Protectio...