Our insurance team have gathered 260+ quotes from 10 of Australia's most popular providers.
Our expert picks are based on 2023 Finder Awards, Australian Prudential Regulation Authority (APRA) data and customer reviews, plus other policies our team believe offer something beneficial, such as mental health and pre-existing cover.
All the policies on this page can pay you a monthly salary if you need to take time off work due to a sickness or injury. Remember, there's no single best income protection policy that suits everyone's needs, since we all have different budgets and priorities.
Top pick for mental health cover: AAMI income protection
Why choose AAMI?
AAMI income protection could be good if you want a policy that covers mental health or pre-existing conditions, as it's one of the few insurers that clearly states it can cover you.
We chose AAMI because it covers mental health conditions and pre-existing conditions if you meet its health assessment criteria. While other insurers can cover mental health conditions, only 1 other insurer (Suncorp) clearly states that it will cover pre-existing conditions. However, AAMI scored a higher overall score compared to Suncorp in our Finder Awards.
Like other insurers, it can pay you income replacement if you're unable to work due to mental health issues for up to 2 years.
It's also a very comprehensive policy. It can pay up to 75% of your income, which is more than most, and you get a 5% off if you have other policies with AAMI.
You won't be able to claim on mental health conditions within 6 months of taking out cover. This is the same as other income protection policies.
AAMI's income protection product doesn't have a lot of customer reviews so it's difficult to gauge how good its customer service is. However, it's policies are issued by TAL, one of the leading life insurers on the market.
We looked at 10 income protection insurance policies and selected our top pick based on the following benefits: claim benefit period, qualifying period and pre-existing conditions cover. Other insurers including Insuranceline, Zurich and Suncorp can cover you if you need to take time off due to a mental health condition. However, only Suncorp specifies that it will also cover pre-existing conditions. We chose AAMI though because it received a higher score in our Finder Awards. We didn't look at every insurer on the market.
NobleOak income protection is a good option if you want a trusted insurer that offers good cover, including cover for up to 70% of your pre-tax income and tax-deductible premiums.
It's competitively priced. According to our 2023 research of 10 different income protection policies, NobleOak is cheaper than average, costing non-smokers around $20 less than other policies.
97.0% of claims are accepted. That's higher than average (95.2%) and better than TAL (95.7%). Similarly, it has much more positive customer reviews than TAL.
Like other income protection insurance policies, your premiums are typically tax-deductible. That means while it may cost you say $30 a month, you can claim that back at tax time.
It was a highly commended brand in the 2023 Finder Awards largely because it was one of the cheapest policies for smokers and non-smokers. It also comes with lots of features, including the option to receive payments up to the age of 65.
It can cover 70% of your income. This is the same as the majority of other insurers we analysed but some, including Insuranceline, can cover up to 75%.
It comes with 2 waiting period options of 30 days or 90 days. This is fewer options than TAL.
We picked NobleOak because it was a highly commended brand in the 2023 Finder income protection awards. To determine the scores, we got 260+ quotes across 10 income protection providers. These were:
AAMI
Bendigo
Insuranceline
NobleOak
RAC
RACQ
Suncorp
TAL
Zurich
Real
To get a fair average, we used 32 different profiles to gather our quotes. These ranged from a non-smoking 30-year old white collar female to a blue collar 60-year-old male smoker.
Our experts then researched and rated 8 features across 10 policies. The winner was based on a 70:30 split of the features and price score. NobleOak came in second-place. TAL was first because it was cheaper and has more waiting period options.
Best income protection for value : TAL income protection
Why choose TAL?
TAL is our expert's top pick because it's the cheapest policy on average and the 2023 Finder Award winner – you can start receiving 70% of your monthly income within 2 weeks of submitting a claim.
It's the cheapest income protection insurance policy on average, according to our 2023 research of 10 popular Australian income insurers including NobleOak, Suncorp and AAMI. This is based on 260+ quotes we got for 24 different customer profiles, ranging from 30-60-year-olds.
It's the cheapest income protection policy for tradies such as carpenters. On average, a policy cost $81 per month. That's $45 less than average.
It comes with flexible waiting periods of 2, 4, 8 or 13 weeks. So for example, if you want to receive payments sooner, you could choose 2 weeks. If you have some savings you can rely on, you could select 13 weeks and pay less for a policy.
It can cover 70% of your income. The industry average is 70% but some insurers such as Insuranceline can cover up to 75%.
It has a lot of negative customer reviews. Complaints range from premium increases to being rejected because of certain health issues. However, according to APRA, it has an above average claims acceptance rate of 95.7%.
It can cover you for up to $30,000 per month. This is above the industry average (out of 12 insurers, only 4 others offer this much) but it's only really helpful for very high-earners.
We picked TAL because it is 2023 Finder income protection award winner. To determine the winners, we got 264 quotes across 10 income protection providers. These were:
AAMI
Bendigo
Insuranceline
NobleOak
RAC
RACQ
Suncorp
TAL
Zurich
Real
To get a fair average, we used 32 different profiles to gather our quotes. These ranged from a non-smoking 30-year old white collar female to a blue collar 60-year-old male smoker.
Our experts then researched and rated 8 features across 10 policies. The winner was based on a 70:30 split of the features and price score.
Say you're paying $40 a month in income protection premiums, you can claim all that back at tax time. If you have other types of insurance bundled with your income protection policy, such as personal injury, these won't be tax deductible.
Top pick for features: Insuranceline income protection
Why choose Insuranceline?
Insuranceline income protection is a good policy if you want covered for a larger percentage of your salary (75%) and access to some sign up perks others don't offer.
It can cover up to 75% of your salary. That's 5% more than the industry average, and one of the main reasons it scored better than any other insurer for features in the Finder Awards.
It comes with flexible waiting periods of 2, 4, 8 or 13 weeks. This could be helpful if you want to receive payments sooner (you could choose 2 weeks) or have some savings you are happy to fall back on for a while (by selecting 13 weeks). The longer the waiting period, the cheaper your monthly payment will be.
There are sign-up perks as well. You also get a $100 gift card after your first 4 months. This offer ends 31 March 2024.
Insuranceline isn't typically the cheapest policy. TAL and NobleOak tend to offer cheaper policies.
While this isn't part of its income protection product, Insuranceline has had some negative reviews and press over its funeral insurance product. Some customers have paid more for insurance than the cost of the funeral itself.
We selected Insuranceline because it performed best in the Finder Awards for features. This was largely because it is one of the only insurers to cover up to 75% of your salary, come with several waiting period options and pay you an income for up to 5 years.
Unfortunately, income protection policies don't generally cover redundancies anymore. They only pay out if you're unable to work because of an accident or illness.
Income protection calculator: How much cover you could get
We estimate that you could get...(click Calculate to see results)
This is how long you will be paid. Usually, the insurer will give you a few options to choose from – e.g. 1, 2 or 5 years. The smaller the benefit period you choose, the cheaper your policy will be.
Waiting period
Once you're unable to work, you can submit your claim. You'll then need to wait a specific time before your policy begins. This is the waiting period.
For example, say you submit your claim on 1 November and you select a 14-day waiting period, your policy will begin on 14 November. You will receive your first monthly payment on 14 December.
Most policies let you choose from a few different waiting periods – the bigger the waiting period, the cheaper your policy will be. If you think you can get by on sick leave for a while, it might be worth selecting a bigger waiting period.
Maximum cover
Insurers will also put caps on the amount you can claim per month. You'll only be able to earn a percentage of your current salary (usually up to 70%).
Insurers also set a maximum monthly benefit, typically around the $10,000 mark. If you earn more than that per month, insurers such as TAL and NobleOak go up to $30,000.
Stepped or level premiums
Stepped premiums go up as you get older but tend to start off cheaper. Level premiums don't increase over time but typically cost more to start off with. If you're worried about payments becoming unaffordable over time, level premiums might be best for you. Otherwise, it's likely that stepped premiums will be cheaper in the shorter term.
Compare more income protection insurance policies in Australia
Why you can trust Finder's income protection experts
We're free
You pay the same as buying directly from the insurer. We make money from referral fees when you choose a policy, but you don't pay any extra.
We're experts
Our team of income protection experts have researched and rated dozens of policies as part of our Finder Awards and published 80+ guides.
We're independent
Unlike other comparison sites, we're not owned by an insurer. Our opinions are our own and all guides must meet our editorial standards.
We're here to help
Since 2016, we've helped thousands of Australians find income protection by explaining your cover options, simply and clearly.
Frequently asked questions
There's no best income protection insurance, as no two people have the same needs. However, based on our awards research and expertise, TAL, AAMI and Insuranceline is Finder's top picks for April 2024. We review these policies on a monthly basis.
An income protection policy typically covers you for up to 70% of your regular income. Some will cover you for up to $30,000 a month. No income protection policy will allow you to earn more than your current income.
If you rely on your income to pay bills, including your mortgage payments, then income protection is probably worth getting. It means that if you experience an accident or illness that forces you to temporarily stop work, it can make sure you don't fall behind in payments.
Income protection doesn't typically cover you if you are made redundant. Any sickness resulting from Pregnancy is another common exclusion.
In most cases, you can receive income protection payments for between 12 months and 5 years, depending on the benefit period you select. Some insurers, such as NobleOak, also come with another option which allows you to receive monthly payments until you turn 65.
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
Life insurance can be bought directly from an insurer. Learn about the benefits and a few watch outs you should be aware of.
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