Keep your lifestyle going even if your income stops.

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Rates last updated December 16th, 2017
Name Product Short Description Maximum Monthly Benefit Maximum % of Income Covered Maximum Benefit Period Waiting Period
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
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
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
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

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Want to know how much income protection you can get?

Income Protection Calculator

Income Protection Insurance Benefit Calculator

The estimated coverage quote provided in the calculator above is determined using the following formula:

(Current Annual Income) x (0.75)

= Your monthly benefit to replace your income


Continue reading to learn how income protection works

Not sure how income protection works?

What is income protection?

Income protection replaces your income (in the short term) if you're unable to work due to the following:
  • Serious illness
  • Injury
  • Redundancy (depending on the policy)

What type of benefit does income protection provide?

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.

What does the monthly benefit cover?

The monthly benefit can cover your everyday expenses as well as any long-term debt repayments. These expenses can include the following:
  • Food
  • Petrol
  • Education fees
  • Credit card debt
  • Mortgage payments
  • Everyday bills

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Learn the basics of income protection in three minutes

Looking for a more specific type of cover?

The finder.com.au income protection comparison

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 Dec 2017 and are subject to change. Any weekly premium mentioned is for reference only as most providers offer yearly, monthly and fortnightly payments.

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

Likelihood of actually needing income protection over your working life?

  • Over 60% of Australians will be disabled for a period over one month during their working life with 25% being disabled for longer than three months².
  • Over 2.6 million Australians under the age of 65 have suffered a physical disability³.
  • Yes, premium payments are generally tax deductible.
  • An ongoing benefit can be paid until age 65.

How do I actually compare policies?

Understand your needs Compare benefits Check policy structure

Is your income fluctuating or fixed?

How long can you go without income?

How long do you want cover for?


Understand your needs Compare benefits Check policy structure

Compare the following policy benefits

Protecting your income is serious business and you want to make sure the policy you are paying for is going to protect you in the way you need. Assess the following benefits as you compare policies:

  • Total disablement benefit. You will receive a monthly benefit if you meet your policy's definition of total disablement. You will receive your benefit from the end of the waiting period to the end of the benefit period.
  • Partial disability benefit. You will be paid the monthly partial disability benefit if you meet the definition of partial disability.
  • Benefit indexation. Each year, your insured monthly benefit will increase to keep pace with inflation.
  • Premium waiver. You will not have to pay your premium if you are eligible to receive the monthly benefit.
  • Rehabilitation expenses cover. Your insurer will pay for the cost of an approved rehabilitation course if it is necessary for your recovery.
  • Recurrent benefit. Your insurer will pay a benefit without a waiting period if after a specified period of time at work (usually about 12 months), you suffer the same or a related disability from a previous claim.
  • Death benefit. Your beneficiaries will receive a lump-sum benefit equalling a multiple of your insured monthly benefit if you pass away before the policy expires.
  • Needlestick injury benefit. This is a benefit paid if you become infected with HIV, AIDS, Hepatitis A or Hepatitis C as a result of a splash or needlestick injury that occurred while performing the normal duties of your occupation. This benefit is normally only offered to medical practitioners.
  • Cosmetic or elective surgery benefit. This is the total disablement benefit you will receive if you become totally disabled as a result of cosmetic surgery, other elective surgery or as a result of surgery to transplant an organ from your body into the body of another person.
  • Specified injury benefit. You will be paid the insured monthly benefit in advance without a waiting period if you suffer an injury listed in your policy.
  • Bed confinement benefit. You will be paid a portion of your monthly benefit if you are confined to a bed and require the attendance of a full-time nurse.
  • Accommodation benefit. You will be reimbursed for the accommodation costs of an immediate family member if you become totally disabled and they travel more than 250km to see you.
  • Family care benefit. A benefit will be paid if at the end of the waiting period, a family member's income is reduced as a result of looking after you while you are totally disabled.
  • Overseas assistance benefit. This covers the cost of transporting you back to Australia if you are travelling overseas and become totally disabled for more than a specified period of time (usually three months).
  • Worldwide protection. You will be covered 24 hours a day, 7 days a week anywhere in the world.
  • Day-one accident benefit. In the event of an accident, you can receive the benefit of your income protection policy from day one. Watch out for policies that will require you to be injured for a certain period before backdating the benefit.
  • Claim escalation benefit. If your claim has been paid for more than a specified period, your benefit payment will be increased by the CPI increase.
  • Lump-sum payment. You will receive a lump-sum payment as opposed to a monthly payment if you satisfy the company's definition of total disablement.
  • Child care benefit. You will receive a benefit payment if you are unable to work and your child is dependent on you for everyday needs.
  • Retirement optimiser. This covers a portion of your monthly income so that your superannuation fund can continue to grow while you are under an income protection claim.
  • Business expenses. This covers the fixed expenses of your business if you are a self-employed worker.
  • Increasing claims option. This is a paid option that increases the monthly benefit you receive over time by an agreed percentage (often 5% a year) or in line with annual CPI (inflation) increases. The increasing claims option is suited to those whose income protection policy pays a monthly benefit of longer than two years and who are not sure if the amount they would receive in the event of a loss of income would be sufficient for their needs after future inflation has reduced its value. Naturally, a benefit such as the increasing claims option has the potential to cost an insurer more money in the long run, so the cost is passed on to the insured in the form of a higher initial premium. However, some Australian life insurance companies have recently started offering this option as an inclusion in their income protection policies.

Understand your income needs Compare benefits Check policy structure

Check the structure of your policy

Make sure you ask your insurer the following key questions when comparing policies:

Compare income protection quotes with an adviser

Guides to help you understand income protection

When will I qualify for a payment with income protection?

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.

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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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.

WorkCover should only be viewed as the minimum 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. See the table below for how the two cover types are different;

Income protection

  • Provides an ongoing benefit payment of 75% of your monthly income if you suffer a serious illness or injury.
  • Will cover injury and illness that occurs both at work and outside of the workplace.
  • Provides additional benefit payments to cover rehabilitation expenses.
  • You can choose to have your benefit paid for 2 years, 5 years or to age 65.

WorkCover

  • You are generally entitled to compensation if you suffer an injury, disease, illness or psychological injury through the course of your work.
  • You may be entitled to compensation if through the course of your work, a pre-existing condition reoccurs.
  • Workers Compensation provides cover for reasonable medical, surgical and hospital care for work-related injuries.
  • A lump-sum payment may be provided for permanent impairments.
  • Premiums are funded by the employer.
  • Benefit payments will usually last for a minimum of 13 weeks at 90% of the workers Annual Weekly Earnings (AWE). From 13 to 26 weeks, this amount is reduced to 80% of the AWE.
  • You may not receive payment benefits when you are first injured, which can be when you need them the most to cover medical bills, mortgage repayments and other immediate expenses.
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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

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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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