Keep your lifestyle going even if your income stops.

Use our tools to find the right income protection insurance for you.

Whether you're a full-time retail worker or a contracted plumber who's weekly hours are never the same, we can all agree on one thing: not being able to work is an uncomfortable thought.

This is why income protection exists. It's a product that keep an income stream coming in if you do get injured or fall ill and are forced to stop working.

If you want to be able to pay your rent and keep your lifestyle going while you recover, then make sure you compare some of the Australia brands on our panel below:

Compare income protection quotes

Name Product Short Description Maximum Monthly Benefit Maximum % of Income Covered Maximum Benefit Period Waiting Period
Cover up to 85% of your income up to $10,000 per month if you can't work due to sickness or injury. Cover for over 1,000 jobs and full-time, part-time and self-employed.
$10,000
85%
5 years
14, 28, 60, or 90 days
Cover up to 75% of your monthly income if you can’t work due to illness or injury, up to a maximum of $10,000 a month. Take out cover today and you could get a bonus $100 Gift Card.
$10,000
75%
5 years
30 or 90 days
Cover up to 75% (to a maximum of $25,000) of your monthly income with NobleOak Income Protection. Benefit period can be tailored to suit your needs.
$25,000
75%
2 years or to the age of 65
30 or 90 days
Receive up to 75% of you income (up to $10,000 per month) of your income if you're unable to work due to serious illness or injury.
$10,000
75%
5 years
30 or 90 days

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    Life insurance

    Life insurance pays out a benefit to your loved ones if you die. This payment can be used to pay off the mortgage and for any ongoing expenses your family has.

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    What is income protection? | Types of income protection | How to compare cover | Income protection guides

    What is income protection insurance?


    What is income protection insurance?

    Income protection insurance is a product that replaces some of your income if you're unable to work due to serious illness or injury.

    • Most policies in Australia will provide you with a monthly payment up to 75% (with some up to 85%) of your total income to keep you afloat during recovery.
    • Your income can include any commissions, bonuses or fringe benefits that you are eligible to receive.
    • Some policies can cover you for period of up to two years

    What can the monthly benefit cover?

    The monthly benefit can cover your everyday expenses as well as any long-term debt repayments. This can include the following:

    Your food

    With or without work, you still need to eat to survive.

    Your bills

    Think utilities, rent, internet, insurance and all those things that are usually taken care of by your income.

    Mortgage payments

    This is a big one. If you stop working you'll still need to cover your mortgage.

    Childcare

    Some income protection policies offer a Child Care Benefit which can cover the cost of child care while you are unable to.

    Cost of a carer

    Some income protection policies offer a Special Carer Benefit if you require a nurse.

    Family care

    Some income protection policies offer a Family Member Benefit to reimburse a family member if they need to stop work to look after you.

    Will income protection cover redundancy?

    Some brands will combine two policies together: Regular income protection insurance and redundancy cover.

    Case study: Income protection in a real life situation

    Income protection was able to help Germaine at her most vulnerable.

    1. Diagnosed with cancer

    At 56, the legal professional was diagnosed with breast cancer forcing her out of her job and was left to treat cancer without any income.

    2. Income protection at a difficult time

    Fortunately, Germaine had an income protection insurance policy that could provide a monthly benefit of up to 75% of her income. Thanks to this, she was able to take time off, recover and still pay for her ongoing living expenses.

    3. Eventually able to return part-time to work

    After steady recovery, Germaine was able to return to work in a part time arrangement. A feature of her income protection insurance allowed her to switch to a 'partial benefit' to cover the days where could no longer work.

    Receive an income protection quote

    How is income protection different to WorkCover?

    income-protection

    WorkCover is a nationwide initiative where all employers pay the government a premium in case one of their employees is injured at work. The employer can then make a claim and WorkCover will pay out compensation and other benefits, but only if the injury occurred at work.

    You should view WorkCover as the minimum amount of insurance cover you need

    While all Australian employees are covered under WorkCover, that doesn't make income protection insurance obsolete. You should view WorkCover as the minimum amount of insurance cover you need. Potential benefits are not always guaranteed by WorkCover. The table below outlines the differences:

    Income ProtectionWorkcover
    Cover for injuries and illnesses that occur during work
    • Yes
    • Yes
    Cover for injuries and illnesses that occur outside of work
    • Yes
    • No
    Cover for rehabilitation expenses
    • Yes*
    • Yes
    Cover for elective surgery
    • Yes*
    • No
    Cover for your spouses accomodation expenses (if they need be with you away from home)
    • Yes*
    • No

    *Make sure you check with your provider. This may be an included feature or an additional option.

    Is income protection the same as life insurance?

    income-vs-life

    Income protection and life insurance are not the same products as both forms of insurance serve different cover needs.

    What are the different types of income insurance in Australia?

    Cover facts

    How do I actually compare policies?

    Is your income fluctuating or fixed?

    How long can you go without income?

    How long do you want cover for?


    Compare the following policy benefits

    We feel like it's important to consider these benefits when looking for an income protection insurance policy:

    • A long enough benefit period
    • A shorter waiting period
    • Cover for your pre-existing medical condition
    • Fully underwritten to consider your personal circumstances
    • A total disablement benefit
    • A specified disability benefit
    • Rehabilitation expenses cover
    • Day one accident cover
    • Child care benefit if you have kids

    Compare price

    Although we don't believe price is the most important thing to consider, once you understand what cover you need it's good to see who offers competitive premiums. Here's an idea of how much it costs to get income protection for an annual salary of $45,000.

    Policy Monthly quote* Weekly quote*
    Clearview LifeSolutions $36.69 $9.17
    TAL Accelerated Protection $40.54 $10.14
    MLC Insurance $44.76 $11.19
    Asteron Life Complete $45.20 $11.30
    Zurich Wealth Protection $48.14 $12.04

    *Prices quoted above were taken from finder's quote engine. The quote was based on a 35-year-old, non-smoking male office worker. Quotes are accurate for March 2018 and are subject to change. Any weekly premium mentioned is for reference only as most providers offer yearly, monthly and fortnightly payments.

    Cost of income protection insurance

    Compare income protection quotes with an adviser

    Guides to help you understand income protection

    What situations does income protection cover ?

    One of the most important steps when comparing policies is to find out when you will actually be covered. Providers will class disabilities as either partial or total and permanent. The exact definition of total disablement will vary among insurance providers but most will use the following characteristics to approve a benefit payment:

    • You suffer a serious accident or illness.
    • You are unable to work due to suffering a serious accident or illness.
    • You experience a decrease in income following a serious accident or illness.
    • Total and permanent disabilities (this is where TPD insurance comes in)
    • Death (this is the job of life insurance)
    • Redundancy (unless policy is combined with a redundancy plan)

    What's considered 'unable to work'? Three disabilities to understand

    This is where it can get confusing. In this definition of "unable to work" or "disablement", life insurance companies use these different definitions of disability;

    Duties-based disability

    • You are unable to perform one or more important duties in your role at work because you have suffered an illness or injury.
    • Such duties may include manual work, supervision, desk work, meeting with clients or presentations.

    Income-based disability

    • You have suffered a reduction in your income of 20% or greater because of an accident or illness.

    Hours-based disability

    • This means you are unable to perform the duties of your own occupation a certain number of hours per week (usually 10 hours) after suffering a serious accident or illness.

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    How much will I be paid if I'm unable to work?

    You will receive up to 75% of your total monthly income. Your total monthly income is based on either your income when you apply or your income when you make a claim.

    A key factor that you must consider when taking out income cover is whether to take out an agreed-value or an indemnity-value income protection policy. This will help determine how much you will receive.

    What do insurance companies recognise as income?

    • Pre-tax remuneration paid by your employer, including salary, fees and fringe benefits of the previous financial year.
    • Superannuation contributions made by your employer.
    • Commissions and bonuses paid by your employer.
    • Income generated due to the worker's own exertion minus expenses that have occurred during the previous financial year.

    Read the full guide to income protection for self-employed workers.

    In this case your income and in turn your benefit amount, are assessed at the time you make a claim. Therefore, when you make a claim you will also need to provide financial documents, so if you income has reduced since you applied for the policy, your benefit will also be reduced, however, if your income has increased, your benefit will too. An indemnity policy can also often be around 20% cheaper in premiums than an agreed value policy, and can be ideal if you are in a steady job, where you receive regular pay raises and b

    Back to topBack to top

    Some more questions you might have about income cover

    Your policy
    Your benefit
    Your premium

    References:

    ¹ AIHW (2008) Cancer in Australia: an overview 2008, Cancer series no. 46, Cat. no. CAN 42, Canberra

    ² Fabrizio, E (2007) Australia & NZ Disability Income Experience www.actuaries.org/IAAHS/Colloquia/Cape_Town/Walker_-_Income_protection.pdf

    ³ AIHW (2008) Australia’s health 2008, Cat. no. AUS 99, Canberra

    Ready to compare policies? Get quotes from Australian life insurance brands

    Some of the icons on this page are sourced from the Noun Project. See attribution below:

    • groceries by Danil Polshin
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    • Child by Halle Roland
    • Elderly Caretaker by Gan Khoon Lay
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    4 Responses

    1. Default Gravatar
      LornaApril 11, 2017

      If a person has been treated for cancer more than 5 years ago will this affect pay out.

      • Staff
        ZubairApril 12, 2017Staff

        Hi Lorna,

        Thank you for your question.

        finder.com.au is a comparison and information service and we are not permitted to provide our users with personalised financial advice or product recommendations.

        For clarification on whether you are eligible to receive a full claim or not, please refer to your product disclosure statement or contact your insurer.

        All the best,
        Zubair

    2. Default Gravatar
      jamesSeptember 14, 2016

      I want to have my income protected in case of illness of family members (my parents) in the UK

      • Staff
        MauriceSeptember 14, 2016Staff

        Hi James,

        Thanks for your question. Unfortunately income protection in Australia will only protects the income in the case of an injury or illness to the person who’s income is insured.

        I hope this helps,

        Maurice

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