Best Income Protection Insurance in Australia
We scored 14 policies on price, features and add-ons. Here's who we ranked as the best income protection.
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Winner 2020: NobleOak Income Protection
NobleOak Income Protection won the Finder award for best income protection thanks to their affordable cover and the range of unique features on offer.
NobleOak offers a higher maximum payout than the other insurers featured on Finder, so if you're looking for a bigger benefit, this could be the policy for you. You also have the option to receive benefits up until age 65 with NobleOak, whereas other insurers looked at by Finder limit payouts to five years or less.
- Spouse benefit
- Nursing care benefit
- Rehab expenses benefit
Looking for the best:There's no single insurance that's best for everyone as all our needs are different - and what's best for you might not be best for someone else.
Finder Awards methodology
Our 2020 Finder Awards for Best Income Protection Insurance looked at 14 online Australian brands across 12 different personas for both males and females aged between 30 and 50. We only compared direct insurance brands in Australia and our comparison was not whole of market.
Multiple quotes were obtained from each provider. The following product features were scored and weighted as follows:
- Max Monthly Benefit Score: 25%
- Max % of Income Covered Score: 15%
- Max Entry Age: 10%
- Benefit Period Options: 5%
- Max Benefit Period: 10%
- Waiting Period Options: 5%
- Minimum Waiting Period: 10%
- Interim Cover Offered: 5%
- Redundancy Cover Offered: 5%
- Death: 5%
- Total/Permanent Disability Cover 5%
Overall score was calculated as follows:
- Smoker Quote Score 10%
- Non Smoker Quote Score 20%
- Features Score 70%
You can read our methodology in full here.
Best Income Protection Insurance in Australia: 2020 Finalists
After reviewing 14 direct insurance brands across Australia, these were our awards finalists.
|Policy||Maximum coverage offered||Stand out features and benefits||Apply|
How to find the best income protection insurance policy for you
Choosing the right income protection insurance is an important financial decision. Here are some key features to keep an eye on while trying to find the best income protection insurance for you:
- Benefit period. This is the length of time benefits will be paid out for. Usually, you'll be able to customise this to some degree, but insurance companies will have a maximum limit – typically two years or five years, depending on the insurer.
- Waiting period. Once you're unable to work, you must wait a certain period of time before you can claim. This is the waiting period. You can usually customise waiting periods, but they will typically be somewhere between two weeks and two years. Read more about the waiting periods for income protection.
- Maximum cover. Insurance companies will also put caps on the amount of benefit you can claim. Typically, you'll only be able to claim a percentage of your current salary (usually 75% or 85%). However, insurers also set a maximum monthly benefit, usually around the $10,000 mark.
- Cost. Prices can vary a lot with this type of insurance, and so it's worth shopping around for competitively-priced deals that give you enough coverage. Find out about the factors influencing the cost of your premium.
- Premium type. The structure of your premiums can have a big impact on the overall cost of your policy. There are generally two types of premium structure you can choose from:
- Stepped policies begin cheaper but increase every year in accordance with your age. They can become quite expensive as you grow older.
- Level policies are more expensive to begin with. However, a level premium will not increase with your age so as you become older they can end up being the cheaper option.
Read more about the differences between stepped and level policies.
Important: Never buy a policy solely based on price
It can be tempting to buy an income protection policy because it's cheap, but if you don't check the benefits and exclusions, you could end up with cover that doesn't fit your needs and doesn't pay out when it comes to crunch time.
Find the best income protection for seniors
Unfortunately, you might struggle to find income protection insurance if you're over the age of 60. The table below shows the maximum entry age of different insurers as well as the age at which your policy would expire.
|Insurer||Maximum entry age||Policy expiry|
Find the best policy for mental health conditions
According to healthdirect.gov.au, about one in five Australians suffer from a mental illness every year, yet some income protection policies won't pay out if you're unable to work due to mental illness. Thankfully, there are income protection policies that will, including NobleOak and TAL.
If you want income protection insurance that will cover you if mental illness keeps you from working, it's worth considering one of these brands.
Find the best income protection for your profession
The price of your income protection policy will be influenced by the job you do – the riskier your profession, the higher your premium. However, a few jobs are considered so dangerous that some brands won't cover them at all.
This means if you were injured while at work, you wouldn't be able to claim on your income protection insurance. Instead, you'd only be able to claim for injuries that happened outside of work.
|Brand||Excluded professions / working conditions|
Find the best income protection policy for your lifestyle
Some people live riskier lifestyles than others. Unfortunately, if you're one of those people, you'll probably end up paying more for your income protection insurance. Some brands may even refuse to insure you for particularly dangerous pastimes or hobbies.
The table below shows some of the dangerous pastimes that insurers may not cover you for. The list isn't exhaustive, so always check your PDS or talk to your insurer directly if you have any questions about coverage for more risky activities.
Compare more income protection insurance policies
You can use some of the tips provided in our guide to help you find the right cover for you. Use the table to compare key benefits of some other different income protection policies at a glance. Continue reading this guide to see what else makes up the best income protection cover.
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