Casual and part-time employees can still get income protection, but there are more restrictions around it.
Most funds need you to be working a minimum of 20 hours to be eligible.
You will also need proof of a year or more of steady income.
Conditions of casual or part time income protection
Income protection companies are generally building their products for people who work a traditional full time gig. Which is fine, except there are more people than ever working casual and part time gigs, thanks to capitalism mostly. Especially for young peoplel.
So, if you want income protection as a casual or part time worker, you're going to need to jump some extra hurdles. Here are 3 common rules:
Minimum hours worked in a week
Most policies will require you to work 20 hours a week to qualify for cover.
Minimum weeks worked in a year
Some policies will require you to wotk a minimum of 48 hours per year.
Age restrictions
Some policies will enforce a stricter age limit e.g. 18-59.
Income protection for less than 20 hours per week
You'll notice on the table below that most insurance companies won't cover workers with less than 20 hours a week regularly employment. Despite that, there are some other options available from select insurers. If you work less than 20 hours per week, you may be able to get cover under "homemaker" income protection policies, but should make sure that working on a casual basis does not disqualify you from "homemaker" status with a certain policy.
The exact ways that each company change over time, so you may need to speak to a broker if you don't neatly fit into the box the companies have built. BEcause of course you don't!
*Can vary depending on the type of occupation. Always consult the Product disclosure statement (PDS) if you are unsure.
Part-time and casual income protection for different occupations
Depending on your job, your income protection insurance will have different benefits and requirements. Insurance providers categorise occupations based on risk level and it's important to know which category your job falls into. Some occupations such as farming are also susceptible to unpredictable income fluctuations, and you should ensure that you have good income protection insurance to help cover these unexpected shortfalls. Learn more about income protection insurance to make sure you have the best cover for your job.
Can I get income protection as a stay-at-home-parent?
Stay-at-home parents or 'homemakers' can also claim income protection. A growing number of insurers in Australia are recognising homemakers as eligible recipients for income protection benefit payments. Insurers recognise the financial strain of losing a homemaker as it often results in needing to pay for the services of a professional worker to carry out day-to-day tasks. For single parents, injury or illness can mean that they can’t care for their children.
Tips for finding the right income protection policy
Look at the cost of the plan and make sure you can afford the premiums.
Check to see which providers offer cover for part-time workers and how many hours you need to be working to get it.
Compare the maximum coverage levels available with different providers to find a plan that offers you a good level of security. You may have a preference for a lump sum payment, or for ongoing payments.
Compare the benefit periods and the waiting times available with different providers to find one that works for your savings and income.
Consider cover from a range of different providers. Rule out the insurance companies that don't have plans you're eligible for.
If you're having trouble finding the best option, use the Income Protection Insurance Finder to compare a wide range of options and find the best cover for your situation.
Compare income protection quotes from these direct brands
Tip: If you want to compare policies side-by-side, simply click the 'Compare' tickbox. Then select 'Get a quote' to get started.
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Why you can trust Finder's income protection experts
We're free
You pay the same as buying directly from the insurer. We make money from referral fees when you choose a policy, but you don't pay any extra.
We're experts
Our team of income protection experts have researched and rated dozens of policies as part of our Finder Awards and published 80+ guides.
We're independent
Unlike other comparison sites, we're not owned by an insurer. Our opinions are our own and all guides must meet our editorial standards.
We're here to help
Since 2016, we've helped thousands of Australians find income protection by explaining your cover options, simply and clearly.
Frequently asked questions
It can vary depending on the job you have. In general, you'll need to be working in paid work for at least 20-30 hours per week to be eligible for income protection.
Yes, you must be employed. The good thing about income protection insurance is, unlike, say, wokers' compensation, you're able to claim it whether or not you become injured as a result of your usual work activities.
Typically, waiting periods range between 14 and 90 days. You won't find income protection insurance with no waiting period in Australia.
Tim Bennett is a Finder insurance expert. For over 10 years he's reported on news, politics, finance and other topics as a journalist and radio presenter. Tim's roles have included radio news reader and breakfast at the ABC, news producer for SBS and producer for Fairfax Media. Tim regularly appears as a health insurance expert on programs like Sunrise and SBS news, as well as in the Australian, The Daily Telegraph, The Courier Mail and more.
One of the benefits of income protection insurance is that you may have the ability to claim a tax deduction on your premium benefits. Find out if the same rules apply for policies inside super.
Looking for the best income protection insurance but not exactly sure where to start? Compare the Finder Awards 2023 insurance winners.
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