Compare Income Protection Across Australia’s Top 9 Insurers

In the event of a claim, the insurer will pay an amount (normally up to 70% of your gross salary in Australia) until you have recovered sufficiently to work again, or up to the maximum benefit period as stated in the policy: 2 years, 5 years or up to age 65.
In the event you can’t work due to illness or injury, income protection insurance aims to protect your income by providing you with an income stream; it acts as a backup plan.

Income protection is also known as salary continuance insurance. The reason why you can’t get the full 100% of your income is to provide you with some incentive to get back to work, while providing you with enough income to help toward paying the bills.

Depending on the policy, an Income Protection will generally cover 70% of your annual income (including super) as a monthly benefit. Some policies offer booster payments of up to 90% in the first six months. This monthly benefit is taxed as regular income.

Income Protection factors to consider:

• Costs of meeting your debts (mortgage, etc.)
• Providing enough funds for a spouse, children or other dependent
• Maintaining your assets & investments
• The benefits are taxable, but the premiums are generally tax deductible.

If you choose a level of cover that is more than your financials can justify, you will be paid the lesser amount according to your actual earnings.
If you are self-employed, BEWARE – cash-in-hand jobs, that are not declared, do not count towards proving your income come claim time. It’s important to select as close as possible to the right amount of cover so that you are not unnecessarily paying premiums that are too high.

There is no requirement for a medical, except if your cover amount is above certain limits or you have a pre-existing medical condition that the insurance company wishes to find out more about before offering cover.

Typically, you can receive up to $ 7,500 or higher without the need for a medical examination, although this amount varies according to your age. If you are younger, you can get higher amounts without a medical.

If you have a pre-existing condition, the insurance company may require you to do medical test(s). Importantly, these tests are of no cost to you.

Income protection insurance will cover you for up to 70% of your income, while loan protection insurance generally covers up to loan repayment amounts. Income protection can provide you with a higher benefit to assist you in meeting other needs/bills outside of your loan repayments.

Income protection costs vary significantly depending on several factors, including the following.

• Age – the cost of obtaining cover generally increases over time
• Gender – Females typically pay a higher amount due to a higher claim ratio for income protection. Females pay less for life insurance.
• Health and pre-existing conditions may either increase your premium costs or exclusions might be offered on your policy or both.
• Whether or not you smoke – If you currently smoke, or have smoked within the last 12 months, you will pay more in premiums compared to a non-smoker. The good news is if you stop smoking for 12 months you can be rated as a non-smoker and have the premiums reduced.
• Occupation – If your occupation is hazardous or high risk, you will pay a higher premium compared to someone who works in an office.
• Waiting period – how long you can be off work before you require the income to commence. The shorter the waiting period the higher the policy costs. The most common waiting period is 30 days, but shorter waiting periods of 14 days are available and longer waiting periods of 90 days are common. It’s important to remember with your waiting period that payments are made 30 days after you are eligible to receive your claim. So, if you choose a 30 day wait your first payment will come at 60 days, this is often not well understood. If you choose a 90 day wait, the first payment will be after 120 days for successful claims.
• Benefit Period – The higher the benefit period the more the insurance costs. The benefit period represents how long the policy will pay out for while you are on claim.  Standard terms are 2 years, 5 years or all the way up to age 70. If you have recovered from your sickness or injury and are able to return to work, then the monthly benefit will cease, and the benefit period resets for new claims unrelated to your original claim.
• Additional policy features – comprehensive cover, basic cover or any additional features will also affect the policy premium.

We compare up to eight insurance companies in Australia, rather than just a couple. This service is offered at no cost to you. The companies on our panel are all trusted, large, well-established retail insurance brands. Each insurance company have “niche” areas where they are looking to attract business, so that quotes can vary wildly between providers.

To find income protection insurance for you, complete our online enquiry form, or contact us via email or phone 1300 793 143. This is a free, no-obligation service.

If you feel comfortable with the information provided in your initial enquiry, please let our Life Insurance Brokers know during your discussions. Our expert brokers do not just find you the right policy. We also help you structure your cover so your accountant can easily claim your income protection tax deduction at tax time.

Income protection provides a backup plan to help offset your bills and expenses if you are unable to work due to sickness or injury.

Look beyond the premium. Compare the waiting period (how long before payments start), the benefit period (how long payments can continue), the percentage of income covered (usually up to 70%), any offsets, and the exact definitions of disability. Also check occupation classification, as this significantly affects price. Our team prepares side-by-side comparisons from nine leading insurers so you can see the real differences clearly.

The waiting period is the time you must be unable to work before benefits begin. A 30-day waiting period costs more but means payments start sooner. A 90-day waiting period is noticeably cheaper and suits people who have solid sick leave or emergency savings. Your first payment usually arrives 30 days after the end of the waiting period, so a 30-day wait typically means the first payment around day 60.

Yes, in most cases. If you pay the premiums from your own after-tax income (not from super), they are generally tax-deductible in Australia. The monthly benefit you receive is treated as taxable income. Premiums paid from superannuation are usually not deductible. We recommend confirming the exact treatment with your accountant, and we can structure quotes to make the tax position clear.

Yes — occupation is one of the biggest factors. Office-based or professional roles are generally rated as lower risk and attract lower premiums. Manual, trade, or higher-risk occupations (for example many tradies) attract higher loadings. Correctly classifying your duties (including how much time is spent on manual work versus supervisory work) can make a meaningful difference to the quotes you receive.