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

What if I already have cover through 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.

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.

Income protection that’ll work harder than you do

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.

Compare income protection policies

5 of 18 results

Finder Score	Maximum monthly benefit	Maximum % of income covered	Maximum benefit period	Minimum entry age	Sum insured
Finder score 9.8 Excellent TAL Accelerated Protection Income Protection Finder Award	Finder score 9.8 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 product selectionCompare	loading
Finder score 8.7 Great HCF Income Protect Insurance	Finder score 8.7 Great	$10,000	Up to 70%	Up to 12 months	18	$22 million	Cover up to 70% of your income by choosing a fund that puts members first.	Get quote View details Compare product selectionCompare	loading
Finder score 8 Great AAMI Income Protection	Finder score 8 Great	$10,000	Up to 75%	Up to 5 years	18	$222 million	Purchase a new AAMI Income Protection policy and save $100 on your first year. T&Cs apply.	Get quote View details Compare product selectionCompare	loading
Finder score 6.7 Standard ahm Income Protection	Finder score 6.7 Standard	$10,000	Up to 70%	Up to 5 years	18	Data not available	Get a 10% discount if you're already an ahm Health Insurance member. T&Cs apply.	Get quote View details Compare product selectionCompare	loading
Finder score 7.4 Great Medibank Income Protection	Finder score 7.4 Great	$12,500	Up to 70%	Up to 5 years	18	Data not available	Get your 1st month free when you use promo code MB1MF and get cover by 2 Feb 2026. T&Cs apply.	No medicals or blood tests needed to apply.	Get quote View details Compare product selectionCompare	loading

Showing 5 of 5 results

Finder Score - Income Protection

Income Protection is a little complicated and a lot overwhelming. That's why we made the Finder Score, to make it easier to compare Life Insurance products against each other. Our experts analysed over 12 products and gave each one a score rank out of 10.

But a higher score doesn't always mean a product is better for you. Your situation is unique, so your policy choice will be too. Don't think of Finder Score as the final word, but as a good place to start your life insurance comparison.

Read the full methodology

FAQs

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
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.

Sources

Thank you for your feedback!

Written by

Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio

Income protection that’ll work harder than you do