Compare Income Protection Insurance

Keep your lifestyle going even if your income stops.

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Income protection insurance pays up to 85% of your regular pay if you get injured or fall ill and are forced to stop working. It's a way to keep food on the table, no matter what life throws at you.

Best of all, the premiums are completely tax-deductible so you don't even have to be out of pocket for covering yourself.

Compare Australian income protection brands

Tip: If you want to compare policies side-by-side, simply click the 'Compare' tickbox that's just underneath the green buttons!
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 1,000 job types - full-time, part-time and self-employed.


$10,000
85%
5 years
14, 28, 60, or 90 days
Get cover up to 75% (to a maximum of $10,000) of your monthly income.
$10,000
75%
24 months
30 days
Join Qantas Income Protection and earn up to 100,000 Qantas points. T&CS apply including minimum premium and policy hold periods apply to earn points.
$12,000
75%
5 years
2, 4, 13 weeks or 2 years
Receive one month's premiums free if you pay annually. T’s and C’s apply.

$10,000
85%
24 months
14 or 28 days
Take out a policy and get a $100 bonus gift after holding cover for 2 months. T's and C's apply. Offer ends 31 March 2020.
$10,000
85%
5 years
14, 28, 60 or 90 days
Receive up to 75% of your income (up to $10,000 per month) if you're unable to work due to serious illness or injury.
$10,000
75%
5 years
30 or 90 days
Get income protection cover (up to 75% of your income) without a medical test. Plus, Medibank health insurance members can save 10% off premiums.
$7,500
75%
5 years
30 or 90 days
Get your first month free with Zurich Ezicover Income Protection. Cover up to $75% (to maximum of $12,000) of your monthly income.
$12,000
75%
5 years
30, 60 or 90 days

Compare up to 4 providers

Need some help? Speak to a consultant

Common income protection questions

Top question: 'Is income protection right for me?'

Answer: If you're dependant on your income for your livelihood (like rent, mortgage, groceries, and bills) then it's worth considering income protection. It's especially useful for self-employed people, small business owners, contractors or anyone who's business is reliant on their ability to perform work.
Why? Look no further than the numbers. A May 2018 survey by Finder found that:
  • Over a third (34%) of Australians wouldn't be able to support themselves for a month or less if they became injured or ill tomorrow and unable to work.
  • If the time out of work was increased to six months, that number jumps to 64%.

Income protection covers part of your income up to a defined period of time (up to 2 years on some policies).

Author: Maurice Thach

by Maurice Thach

Life Insurance Publisher for finder.com.au

Do I just need income protection?

Find the right coverage

Answer two quick questions to work out the type of cover you need.

Question 1 of 2

You're probably looking for...

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.

What is income protection insurance?


Income protection insurance pays you up to 85% of your regular income if you're unable to work due to serious illness or injury. You'll receive a payout for an agreed period (usually up to two years) or until you can return to work, whichever is sooner.

If you're ready to compare income protection insurance, Finder gives you a choice of going direct with an insurer or speaking to a financial adviser to talk you through your options.


What can income protection cover while you recover?

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

Groceries
Your food

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

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

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

Income protection can cover any caring costs you have, like childcare and the cost of a carer if you need one.

Will income protection cover redundancy?

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

Case study: A sudden need for income protection

finder.com.au spoke to Germaine, who shared her story of when income protection was able to help her in a time of need.

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.

Note: We interviewed a real policyholder for this case study however we changed their name to 'Germaine' to allow the user to remain anonymous.

What are the different types of income insurance in Australia?

Cover facts

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 Protection Workcover
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 accommodation 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.

How do I actually compare policies?

Follow these steps to compare income protection cover.

1. Understand your basic preferences

Does your income change or is it fixed?

How long can you go without income?

How long do you want cover for?


2. 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
  • The right disability definition for your circumstance
  • Agreed value cover if you want to set your benefit amount
  • Guaranteed future insurability so you can increase your cover without another medical test

Compare income protection benefits

3. 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


Frequently asked questions

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

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Some more questions you might have about income cover

      Buying cover

    • Benefits and waiting periods

    • Payout eligibility and disability definitions

    Your policy

    Your benefit

    Your premium

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    References:

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

    2 Income protection gaps: a rising global challenge, Zurich/Smith School, University of Oxford, November 2015.


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    12 Responses

    1. Default Gravatar
      alfDecember 1, 2018

      Is there a policy that provides income protection when becoming temporarily unemployed after having been working & with income protection plan cover?

      • Avatarfinder Customer Care
        ValDecember 7, 2018Staff

        Hi Alf,

        Thank you for leaving a question.

        This depends on the reason why you are unemployed temporarily but for information you can check Beginners guide to income protection for options on income protection plans available

        Cheers!
        Val

    2. Default Gravatar
      MustafeOctober 30, 2018

      I live in Ethiopia i want sponsor

      • Avatarfinder Customer Care
        JohnOctober 31, 2018Staff

        Hi Mustafe,

        Thank you for your question.

        I understand you are looking for a sponsor to enter Australia. You can find a sponsor yourself, or you can put in an expression of interest using SkillSelect. Lodging an expression of interest in SkillSelect allows Australian employers to see your qualifications and employment history. Employers can then contact you if they are interested in offering you a position. Hope this helps!

        Cheers,
        Reggie

    3. Default Gravatar
      RahulOctober 23, 2018

      main isake lie aavedan kaise kar sakata hoon…

      • Avatarfinder Customer Care
        JohnOctober 23, 2018Staff

        haay raahun

        ek prashn chhodane ke lie dhanyavaad.

        aap us pradaata ke painal se chun sakate hain jis par ham aay suraksha beema ke lie hain.

        upalabdh pradaataon ko pradarshit karane vaalee taalika par krpaya apane vikalpon kee sameeksha karen aur tulana karen. ek baar jab aap kisee vishesh pradaata ko chun lete hain, to aap “sait par jaen” batan par klik kar sakate hain aur aapako pradaata kee vebasait par reedaayarekt kiya jaega jahaan aap aavedan ke saath aage badh sakate hain ya aage ke poochhataachh ke lie apane pratinidhiyon ke sampark mein rah sakate hain.

        aavedan karane se pahale, krpaya sunishchit karen ki aap sabhee yogyata maanadandon ko poora karate hain aur aavashyak aavashyakataon ke vivaran ke saath-saath sambandhit utpaad prakateekaran vaktavy / niyam aur sharton ke maadhyam se apane vikalpon kee tulana karate samay yah nirnay lene se pahale ki yah aapake lie sahee hai ya nahin. ummeed hai kee yah madad karega!

        cheeyars,
        regee

    4. Default Gravatar
      GregOctober 2, 2018

      Self employed, I took out income protection and Trauma policies in 1994 due to the arrival of first child. The cover was indexed and I accepted the indexation increase upon every policy anniversary.

      In 2000, I suffered a mild MCI from which I fully recovered without needing a stent or subsequent surgery. The Trauma lump Sum benefit was paid immediately.

      The insurer then advised that my future premiums for the remaining income protection cover would be subject to a 200% loading. On independent advice I continued to accept indexed cover.

      In July 2009, I was diagnosed with early onset Parkinson’s Disease at age 51. Medically, I was able to continue running my business for another 5 years whereupon my overall condition had deteriorated to the point where a claim on the policy was approved and I accordingly ceased working and retired in August 2014.

      The last annual premium exceeded $13000.00 which prompts my enquiry:

      1.Would I have been charged an increase in trailer commission to the agent, and
      2.Would I have paid commission on the loading component of the increased premium?

      Your response appreciated.

      • Avatarfinder Customer Care
        MauriceOctober 5, 2018Staff

        Hi Greg,

        Thanks for your question. Although I can’t speak for your specific situation, generally, if you are to use an agent to manage your insurance there is potential for ongoing premiums to be paid as percentage of premium. So if a premium is to increase, there’s a chance the commission increases as well.

        Get in touch with your adviser or agent who may be able to disclose their commission structure with you.

        I hope this helps,

        Maurice

    5. Default Gravatar
      LornaApril 11, 2017

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

      • Avatarfinder Customer Care
        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

    6. Default Gravatar
      jamesSeptember 14, 2016

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

      • Avatarfinder Customer Care
        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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