What's the difference between life insurance and TPD insurance?

Life insurance and Total and Permanent Disability (TPD) insurance serve different purposes in Australia. Life insurance pays a lump sum only when you die or become terminally ill, helping your beneficiaries after you're gone. TPD insurance, however, pays out if you become totally and permanently disabled due to illness or injury, leaving you unable to work again, and you're still alive to use the funds. TPD typically requires you to have been off work for at least 3-6 months before claiming. The key difference is timing and purpose: life insurance protects your family after death, while TPD protects you during life if you can never work again. Many Australians purchase both types of cover together, often in a bundled policy, as they address different risks. TPD helps cover medical costs, rehabilitation, home modifications, ongoing care needs, and lifestyle maintenance when you can't earn income. Some policies offer 'own occupation' TPD (can't work in your specific profession) or 'any occupation' TPD (can't work in any job), with own occupation providing broader protection but costing more. Consider both covers for comprehensive protection.