Difference between TPD and Income Protection Back
Two insurance policies that offer protection in the event of illness or injury are TPD (Total and Permanent Disability) and IP (Income Protection).
However, they differ in a number of ways.
TPD protection:
If you become total and permanently incapacitated and are unable to work in your current or any occupation again, this policy will pay you a lump amount.
Income Protection:
If you are unable to work due to illness or injury, it will give you a steady income stream. This insurance covers temporary disabilities and replaces your lost income. Maximum 70% of your entire annual income, received as recurring monthly income, is covered by this insurance.
There is waiting period and benefit period in Income Protection.
The waiting period: It is the period you must wait before the benefit period starts and you become eligible for a monthly benefit.
The benefit period: It is the period until which the monthly benefit will be paid. The benefit period for any claim starts at the end of the waiting period.