Income Protection Insurance in Australia

Compare 12 income protection insurance quotes and save up to 50%

You’re probably comfortable insuring your car, life and home & contents but do you have insurance for the thing you depend on the most - your job?

With the largest panel of Insurers, our Income Protection Insurance can help safeguard your family’s expenses if you get sick or injured, until you’re ready to go back to work.

For more information on how income protection can protect you and your family, please read our Income Protection FAQ.

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What is income protection insurance?

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.

How does income protection work?

In the event of a claim, the insurer will pay an amount (normally up to 75% of your gross salary in Australia) until you have recovered sufficiently to work again, or up until the maximum benefit period as stated in the policy; 2 years, 5 years or up to age 65.

Why do I need income protection insurance?

What would happen if you woke up tomorrow and found you were incapable of working for an extended period of time? Would you be able to support your household, repay your mortgage or save for the future?

While Workers Compensation protects you if your injury is connected to work, Income protection insurance provides cover for individuals, 24 hours a day, anywhere in the world.

Read more in our article Income Protection versus Workers Compensation.

How much income protection cover do I need?

The income protection cover levels offered are determined by your salary, and influenced by things like debts, lifestyle and illness or injury.

In Australia, the maximum amount of cover you are eligible for is as follows:

  • If you are employed 75% of your current gross salary (including employer packaged fringe benefits  and superannuation contributions).
  • If you are self employed 75% of the income generated by the business as a result of your personal  endeavour, less your share of expenses. This is usually averaged over a period of time, so that a good month or year does not result in a higher level of cover than what are entitled to.
  • If your income is above certain limits (for example, over $250,000), a lower percentage of income may apply.
  • Maximums to the monthly benefit sum insured may also apply.

Things to consider:

  • Costs of meeting your debts (mortgage, etc.)
  • Providing sufficient funds for a spouse, children or other dependents
  • Maintaining your assets & investments

What should I pay for income protection insurance?

Income protection premiums vary greatly depending on the level of protection you are after.

As a general rule, income protection in Australia costs approximately one week’s salary per year (approximately 2% of your annual salary). And when it comes to tax time, premiums are generally tax deductible. To find out if this is the case for you, seek out advice from a tax professional.

The following factors also influence your income protection premium:

  • Age - the cost of obtaining cover generally increases over time
  • Gender
  • Health and pre-existing conditions
  • 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. If you already have a policy and premium based on smokers’ rates and you have not smoked in the last 12 months, you may be eligible for a non-smoker’s premium.
  • 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 waiting periods generally range from 2 weeks to 2 years.
  • Benefit Period - The maximum length of time the policy will provide you with an income stream, following the waiting period. These can either be for a set period (2 years, 5 years) or until a certain age (to age 65). If you have recovered from your sickness or injury and are able to return to work, then the monthly benefit will cease at the time of your return.
  • Additional policy features – comprehensive cover, basic cover or any additional features will also affect the policy premium.

Who offers best Income Protection Insurance in Australia?

At Rate Detective, we take your Personal Insurances seriously. We compare all major insurance companies in Australia, and have insurance specialists that are qualified to provide you with advice on what type of insurance cover is relevant to your situation. This holistic service is offered at no cost to you.

To find the best income protection insurance for you, complete our 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 consultants know during your discussions.

Exclusive Income Protection Insurance Offer

Enquire now and you'll receive a 20% cash rebate on your first year of income protection insurance premiums! This offer valid for Rate Detective clients only, and can only be received by applying above.