Who can apply for income protection insurance?

Australian residents over the age of 18 can apply for income protection insurance. Most insurers stop offering new policies to people once they reach 60 years old. You will also have to meet minimum work requirements before you are approved. Typically, this is 20 hours a week, but it varies between different insurers.

What can I use income protection insurance benefits for?

Income protection insurance is designed as a temporary replacement for your salary, so you can spend it however you like. Remember, you'll have a little bit less to work with because income protection will never cover more than 85% of your wage, but it can still help with the following: Your rent or mortgage Medical expenses related to your illness or injury Regular bills including utilities, school fees and home insurance Credit card bills, car loans and other debts Daily living expenses, including groceries and household goods

Can I get income protection if I'm self-employed?

Yes, you can find income protection insurance if you're self-employed in order to guard against an accident or illness. But policies are now set up with indemnity value. This means an insurer will base the payout on what you earned in the months leading up to your claim. So, if you have a fluctuating income, then there's a risk you may get a less generous payout.

What if I already have cover in my super?

You can have an income protection policy through your super, as well as through a standalone policy. To see what (if any) insurance you have inside your super, call your super fund and inquire with them. They can inform you of the steps you need to take if you choose to amend or cancel your cover. Good to know: Income protection is often far more basic within super accounts, so you may well find better terms and more tailored insurance by going direct with an insurer.

Can I get cover if I only work part time?

Yes. Insurers typically offer income protection to people who work at least 20 hours a week and have been in the same role for 12 months.

Does income protection cover pregnancy?

If your pregnancy is comparatively straightforward, you won't be able to claim on your income protection insurance. However, if it poses a serious and prolonged health risk, you may be able to make a claim in some circumstances.

Are premiums tax-deductible?

Often, yes. The Australian Taxation Office (ATO) has confirmed that you can claim the cost of insurance premiums if they protect against loss of income. Also, income protection premiums can't be claimed on insurance held through your super fund (where premiums are deducted from your super contributions). Keep in mind only premium payments are tax deductible; any payouts from an insurer aren't. Any benefits you receive must be included on your tax return.

What's the cheapest income protection?

Finder research has shown that cheap income protection can start from just $23.10* per month. We looked at 14 brands and found an average monthly premium of $41.95 for a 20-year-old male with a salary of $50,000. Keep in mind that the cheapest income protection policy may not be one that gives enough cover for your needs. *These figures were for a 20-year-old male earning a yearly income of $50,000. Correct as of January 2021.

How do waiting periods work with income protection?

A waiting period is the amount of time you'll need to wait before you can make a claim on your income protection policy. This period is usually 14, 28, 60 or 90 days. If you have the option to increase your waiting period, this can help lower the cost of your premiums. But you won't be insured for this time, so it's risky.

Is income protection calculated on gross income?

Yes, income protection pays up to a percentage of your pre-tax (gross) income. It's set up to replace the income from your annual earnings over the 12 months before your illness or injury.

Does income protection cover losing your job?

No, income protection insurance doesn't cover you losing your job. However, you can opt for alternative products to support you, your family and your lifestyle if you were to lose your job such as mortgage protection insurance .

How long will income protection help me if I'm out of work?

It depends on the maximum benefit period and how long your recovery takes. Generally, income protection policies are up to 2 or 5 years. But the likes of NobleOak and Aspect could offer you far longer protection.

Compare Income Protection Insurance & Deals

1 - 7 of 23

Product	Finder Score	Maximum monthly benefit	Maximum % of income covered	Maximum benefit period	Minimum entry age	Sum insured
TAL Accelerated Protection Income Protection Finder Award	Finder score 9.9 Excellent	$30,000	Up to 70%	Up to Age 65	19	$1,305 million	Get up to 70% of your income covered with flexible short and long term benefit periods.	Get quote View details Compare	loading Fetching your data...
AAMI Income Protection	Finder score 8 Great	$10,000	Up to 75%	Up to 5 years	18	$222 million	Save up to 10% on premiums every year for the life of the policy on AAMI Income Protection. Offer ends 31 July 2025. T&Cs apply.	Get quote View details Compare	loading Fetching your data...
Suncorp Income Protection	Finder score 7.9 Great	$10,000	Up to 75%	Up to 5 years	18	$222 million	Save up to 10% on premiums every year for the life of the policy on Suncorp Income Protection. Offer ends 31 July 2025. T&Cs apply.	Get quote View details Compare	loading Fetching your data...
Medibank Income Protection	Finder score 6.7 Standard	$12,500	Up to 70%	Up to 5 years	18	Data not available	No medicals or blood tests needed to apply. Plus, if you're a Medibank health member, get a 10% discount on your premiums every year.	Get quote View details Compare	loading Fetching your data...
ahm Income Protection	Finder score 6.7 Standard	$10,000	Up to 70%	Up to 5 years	18	Data not available	ahm offers a simple application process. Be approved online or over the phone. No medical or blood tests needed to apply.	Get quote View details Compare	loading Fetching your data...
Zurich Ezicover Income Protection	Finder score 6.6 Standard	$12,000	Up to 70%	Up to 5 years	19	$5 million	Get your first month of cover free when you buy Zurich EziCover Income Protection.	Get quote View details Compare	loading Fetching your data...
Real Income Protection	Finder score	$15,000	Up to 70%	Up to 5 Years	18	Data not available	Cover up to 70% of your monthly income if you can’t work due to illness or injury, up to a maximum of $15,000 a month.	Get quote View details Compare	loading Fetching your data...

The lowdown on Finder Score

We assess 12 products and score each product a score out of 10, based on their pricing and key features.

The higher the Finder Score the better the product. We assess products for their pricing across multiple personas and eight features.

The Finder Score methodology is designed by our Insights team and reviewed by our editorial team. We review the products objectively. Commercial partnerships do not affect the scores.

Remember that Finder Score is just one factor to consider. Look at other aspects like fees, features, benefits and risks to make sure a product is suitable for you. Double-check details that matter to you before applying or buying.

Why compare income protection with Finder?

You pay the same price as buying directly from the income protection insurer.
We're not owned by an insurer (unlike other comparison sites).
We don't ask for your phone or email.
We've done 100+ hours of policy research to help you understand what you're comparing.

Speak to an insurance specialist to help you find personalised cover

What is income protection insurance?

Income protection pays a monthly wage if you need to take time off work due to a sudden accident or illness. Most insurers will pay up to 70% of your pre-tax income. They'll also set a maximum benefit, usually around $10,000 monthly.

The payouts from income protection can help you meet regular expenses, such as your mortgage or rent and groceries. It can also maintain your family's lifestyle while you focus on your recovery.

How does income protection insurance work?

With income protection, you get an ongoing cash benefit after a successful claim. It lasts until one of the following occurs:

You can return to work
Your benefit period ends
You reach an age when you can no longer renew your policy

The benefit period is the maximum amount of time you can receive payments. In most cases, this is for 1, 2 or 5 years. Some insurers offer a benefit period until the age of 65. These policies will cost more.

You can only claim income protection after you've passed the waiting period stated in your policy. It starts from the day you file your claim and it can be 14, 28, 60 or 90 days.

Tip: The longer your waiting period, the cheaper your policy will be. However, choose with care as you'll need to have enough money to support yourself for the duration of your waiting period.

- Expiry age. This is the age at which you will no longer be able to renew your policy. Most insurers set this as 65 years of age.
- Partial disability benefit cover. This add-on lets you claim a portion of your insurance benefit if you can return to work at a reduced capacity – for example, on a part-time basis. You can be paid this until you return to work fully (or your benefit period ends).
- Premium pause. Some policies let you stop paying your premiums – for up to 12 months – if you take extended leave. This could be for parental leave, compassionate leave or full-time study.
- Stepped or level premiums. You may be able to choose between stepped and level premiums. A stepped premium starts off cheaper but increases over time. A level premium starts out more expensive than stepped but won't go up over time.

Pros and cons of income protection

Weighing up the pros and cons of income protection is a helpful way of working out if it's right for you. Take a look below.

Pros

Peace of mind. Money is one of the major causes of stress in life. Income protection can't guarantee all your money worries will go away, but it can take care of one of our biggest concerns: what happens if I can't work? It lets you focus on getting better, not how you'll pay your next bill.
Short-term help that stops long-term problems. Income protection is for those scary times when you're temporarily unable to work. It's short-term financial help that ensures your money worries don't become a long-term problem. If you can rely on income protection, you don't need to worry about alternative ways of paying your bills, like selling your car, picking up a second job when you can return to work, or relying on high-interest loans.
Easy to claim. You don't need to prove permanent disability to work; just that you're temporarily unable to perform your duties.
Good for small business owners. If you run your own business, income protection insurance is very helpful security if an illness or injury strikes and stops you from working.

Cons

Can be trickier if you have a pre-existing medical condition. Sometimes it can cost you more if you have a pre-existing medical condition and in some cases you won't be covered if you need to take time off due to that.
More expensive for different occupations. You'll likely have to pay a little more if you work in a high-risk job where injuries are more likely to occur.
Waiting periods. Income protection policies generally have a waiting period - usually around 30 - 90 days - before it begins to pay you, so you may have to fall back on sick pay until the waiting period is over.

Here's what some experts had to say...

❮ ❯

While it's counterintuitive, you'll want to consider insurance when you're in tip-top shape. This is absolutely a worthwhile investment of your time and helps provide a safety net... lock it in early to get better terms if you can. If you wait and get your cover at a later date, you might find the specific condition you've since had is excluded from your policy.

Pascale Heylar-Moray
Financial literacy advocate

No one is ever really prepared for life's harsh surprises, but the right income protection insurance can help soften the blow during a tough time for your family: financially, emotionally and physically while you're on a claim.

Phil Thompson
Financial Adviser at Skye Wealth

There's a lot more to finding the right cover than simply looking for the cheapest deal. Ultimately, you get what you pay for with income protection. In my view, policies held in super are rarely worth it in the long run. Going directly to an insurer or a broker is the pathway to a more comprehensive policy.

James Martin
Finder's life insurance editor

3 ways to buy income protection insurance

The ways to get life insurance in Australia are direct, retail or via super.

Direct

Do some research and buy directly with an insurer.

Retail

Seek advice from a broker who'll build you a policy.

Super

Get basic cover in your super fund.

Learn more about income protection insurance

Our income protection insurance guides can help you compare and understand what cover option is right for you.

Some more helpful stuff

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Income protection insurance: A beginner's guide
Learn the key points about how income protection works.

Worker

How does my job affect my income protection?
Tradies are well aware of the dangers of their work. Find out how insurers see things.

Life Insurance Box 3

Is income protection insurance tax-deductible?

Here's why income protection is often (but not always) tax deductible.

Life Insurance Box 4

Is income protection worth it?
A balanced look at how income protection can protect you.

The latest income protection deals and discounts

We put together a list of deals and sign-up offers below to help you save:

Store	Discount
ahm Income Protection Deals	10% off for ahm health members ahm health members save 10% on their income protection premiums. Last verified 22 Apr 2025	Get deal
AAMI Life Insurance Deals	5% off on AAMI Income Protection Existing AAMI Insurance customer you’ll receive 5% off on AAMI Income Protection premiums for the life of the policy. Last verified 1 Apr 2025	Get deal
Suncorp Income Protection	5% off on Suncorp Income Protection Existing Suncorp Insurance customer you’ll receive 5% off on Suncorp Income Protection premiums for the life of the policy. Last verified 1 Apr 2025	Get deal
Medibank Income Protection Deals	Medibank health members save 10% If you’re a Medibank health member, you can enjoy a 10% policy discount annually. Last verified 1 Apr 2025	Get deal
Zurich Ezicover Income Protection Deals	Get your first month of cover for free Get your first month of cover free when you buy Zurich EziCover Income Protection Last verified 1 Apr 2025	Get deal

Read our income protection reviews

Want to find out more about a specific insurer? We've reviewed over 20 of them. Here's a bunch of the most popular ones:

If the brand you're looking for isn't here, check out our directory.

Why you can trust Finder's income protection insurance experts

You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.

You save time. We spend 100s of hours researching income protection insurance so you can sort the gold from the junk faster.

You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.

Frequently asked questions

Income protection insurance is designed as a temporary replacement for your salary, so you can spend it however you like. Remember, you'll have a little bit less to work with because income protection will never cover more than 85% of your wage, but it can still help with the following:
- Your rent or mortgage
- Medical expenses related to your illness or injury
- Regular bills including utilities, school fees and home insurance
- Credit card bills, car loans and other debts
- Daily living expenses, including groceries and household goods
Yes, you can find income protection insurance if you're self-employed in order to guard against an accident or illness. But policies are now set up with indemnity value. This means an insurer will base the payout on what you earned in the months leading up to your claim. So, if you have a fluctuating income, then there's a risk you may get a less generous payout.
You can have an income protection policy through your super, as well as through a standalone policy. To see what (if any) insurance you have inside your super, call your super fund and inquire with them. They can inform you of the steps you need to take if you choose to amend or cancel your cover.
Good to know: Income protection is often far more basic within super accounts, so you may well find better terms and more tailored insurance by going direct with an insurer.
Often, yes. The Australian Taxation Office (ATO) has confirmed that you can claim the cost of insurance premiums if they protect against loss of income.
Also, income protection premiums can't be claimed on insurance held through your super fund (where premiums are deducted from your super contributions).
Keep in mind only premium payments are tax deductible; any payouts from an insurer aren't. Any benefits you receive must be included on your tax return.
Finder research has shown that cheap income protection can start from just $23.10* per month. We looked at 14 brands and found an average monthly premium of $41.95 for a 20-year-old male with a salary of $50,000.
Keep in mind that the cheapest income protection policy may not be one that gives enough cover for your needs.
*These figures were for a 20-year-old male earning a yearly income of $50,000. Correct as of January 2021.

Thank you for your feedback!

To make sure you get accurate and helpful information, this guide has been edited by David Gregory as part of our fact-checking process.

Written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 618 Finder guides across topics including:

Health, home, life, car, pet and travel insurance
Managing the cost of living

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