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Income protection for over 60 in Australia

The majority of income protection insurers set an entry age limit of 59 or 60, but there are some exceptions. Compare insurers who offer income protection if you're over 60.

What you need to know

  • Finder analysed 12 insurers and found 6 had a maximum entry age of 60. Most other brands cut off at either 55 or 59. Aspect Income Protection will cover you up to the age of 65.
  • Income protection insurers usually pay benefits for up to 2 years, 5 years or until the age of 65.
  • For those over 60, choosing a shorter benefit period is one way to keep costs low.

Compare income protection for over 60s

1 - 5 of 6
Name Product Online quote offered? Maximum % of Income Covered Maximum Monthly Benefit Average Claims Acceptance Rate
TAL Accelerated Protection Income Protection
Up to 70%
$30,000
Data not available
AAMI Income Protection
Up to 75%
$10,000
Data not available
Insuranceline Income Protection
Up to 75%
$10,000
95.70%
Aspect Income Protection
Up to 85%
$42,000
Data not available
Commbank Income Protection by AIA Australia
Up to 70%
$10,000
93.60%
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Australian brands who offer income protection for 60s and over

ProviderMaximum age
Aspect
  • 65
Zurich
  • 60
NobleOak
  • 55
TAL
  • 60
RACQ
  • 59
AAMI
  • 60
RAC Disability Income
  • 55
Bendigo
  • 59
Real
  • 59
HCF
  • 60
Insuranceline
  • 60
Suncorp
  • 60

*This table was correct as of on 3 April 2023. Keep in mind that restrictions may apply. For example, some occupations won't be covered after a certain age.

If you're having trouble finding advanced age income protection insurance it may be worth consulting an insurance broker to help with your situation.

Finder survey: What prompted Australians to take out income protection insurance?

Response
Retirement8.8%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023

Income protection calculator: How much cover you could get

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Percentage covered

We estimate that you could get...(click Calculate to see results)

What's the benefit of having income cover in your 60s?

  • Cover against risks. Life today is full of uncertainties; income protection helps you keep up with your expenses if an injury or illness puts you out of work in the short term e.g. 6 months.
  • Tax concessions. Plans may be tax deductible in some circumstances. If you buy a direct income protection insurance policy, then you could get some money back on your annual tax return.
  • Helps with ongoing bills, including the mortgage. Insurance also acts as a tool to cover mortgages and loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on family members.

Can my age limit be extended if I bought my policy before 64?

Some policies will let you extend the age limit, but may impose additional conditions after a certain age. Other policies will guarantee renewability up to a certain age limit. For example, Suncorp lets you retain cover until age 75. However, you need to take out a policy before age 60.

Others, such as AIA income protection policies, offer a "2-year benefit period to age 70" option. This can insure you up to age 69, but includes the following conditions:

  • Policy owners must be between 61 and 65 years of age at their next birthday to be eligible for this benefit.
  • Maximum benefit payment of $20,000 applies.
  • Only available with a stepped premium structure. Premiums are not available as level or optimum.
  • Other benefits received under government age pension will be offset against benefit payable.
  • Expiry date is the policy anniversary prior to the policyholders 70th birthday. Therefore, the age limit is 69 despite the name of the option. The cover and any benefit payments being made will be at this date.

What to look for when comparing income protection policies if you're over 60

  • Benefit period: Income protection pays you a benefit up to 75% of your gross monthly income. The length of cover may vary between each provider but there are income protection policies which extend cover to age 65. So even if you are 60 or older, there is still something for you.
  • Premium waiver: A waiver feature lets you waive the premiums when you are receiving the pay-out, and retain the police without payment of premiums.
  • Guaranteed insurability: Also referred to as "guaranteed renewability", this is an important feature. It means the insurer cannot decide to decline your policy renewal, and that you'll retain cover until the expiry age as long as you don't let it lapse. Without this feature an insurer may decide not to renew your cover after a certain age, when the risks, and therefore the chance of paying out, is higher. Moreover, a non-cancellable contract may also let you renew your cover even after making a claim. Policies with this option may cost more than those without, but the security is generally well worth it.
  • Waiting period: Another thing that you should be looking for is the length of the waiting period. How long are you willing to wait before you can cash in your claim? Income protection has flexible waiting periods you can choose from between 14 days to 24 months. Some policies offer a no waiting period feature, however, policies with no or short waiting periods typically have higher premiums than those with longer waiting periods.
  • Rehabilitation expenses benefit: A feature that benefits anyone over 60, this benefit pays you an additional amount to help with rehabilitation costs. Other income protection policies also have added medical and surgical expenses benefits. This offer will vary from provider to provider. The best way to find out if these add-ons are available is to compare various income protection policies from different insurers.

Receive an income protection quote if you're 60 and over

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