Best Income Protection Insurance in Australia 2020

We scored 14 direct policies on price, features and additional options. Here's who we ranked as the best income protection for 2020.

Updated Aug 11, 2020. What changed?

Fact checked

We’re committed to our readers and editorial independence. We don’t compare all products in the market and may receive compensation when we refer you to our partners, but this does not influence our opinions or reviews. Learn more about Finder .

Best Income Protection Insurance in Australia 2020

After reviewing 14 direct insurance brands for 12 personas across Australia, these were the finalists in the 2020 Finder Awards.

Maximum coverage offered	Stand out features and benefits	Apply
75% of monthly income up to $25,000	Highest amount of cover available on the market Longest benefit period available, up to the age of 65 Death and TPD cover included Interim accident cover offered	More info
85% of monthly income up to $10,000	Four benefit period options available, up to five years Optional redundancy cover	Get quote
85% of monthly income up to $10,000	Affordable cover Wide range of waiting periods offered, including 14 days Optional redundancy cover is available	More info
75% of monthly income up to $12,000	Wide range of waiting period options including 14 days Affordable cover overall Affordable cover for smokers	More info
75% of monthly income up to $12,000	Wide range of waiting and benefit periods Unique benefits such as disability cover, premium waiver, rehabilitation expense benefit and Scheduled Injury benefits	More info

Must read: The best option is the one that meets your needs and circumstances, so the best for one person might not be the best for you.

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%

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.

Name	Maximum Monthly Benefit	Maximum % of Income Covered	Maximum Benefit Period	Policy Type	Apply
Insuranceline Rate Saver Income Protection	$10,000	85%	5 years	Apply directly online	Get quote View details	Get a $100 bonus gift after 2 months. Plus get 12 months cover for the price of 11 if you pay annually. T&Cs apply.	Compare	loading Fetching your data...
Medibank Standard Income Protection	$7,500	75%	5 years	Apply directly online	Get quote View details	Medibank health members save 10% every year. T&Cs apply.	Compare	loading Fetching your data...
AAMI Income Protection	$10,000	75%	5 years	Apply directly online	Get quote View details	Compare	loading Fetching your data...
TAL Accelerated Protection Income Protection	$30,000	75%	To Age 70	Underwritten via a broker	Get Quote View details	Compare	loading Fetching your data...
AIA Income Protection	$30,000	75%	To Age 70	Underwritten via a broker	Get Quote View details	Compare	loading Fetching your data...
MLC Income Protection	$30,000	75%	To Age 70	Underwritten via a broker	Get Quote View details	Compare	loading Fetching your data...

Compare up to 4 providers

How to find the best income protection insurance policy for you

We get it, reading about insurance is boring, but it's an important financial decision so it's worth getting it right. 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.
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.
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.

If you're still unsure how to find the right policy, or you have a tonne of income protection questions, you can find plenty of guides on Finder. Take a look out our income protection beginner's guide to get you started.

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.

How do premium types affect your income protection?

There are three premium structures that affect how much you'll pay for cover: stepped, level and hybrid premiums. It's important to choose the one that fits with your lifestyle.

Stepped premiums. These start out cheaper but increase steadily over time.
Level premiums. These start higher than stepped premiums but remain consistent throughout the lifetime of the policy.
Hybrid premiums. These are a combination of both stepped and level premiums. They start mid-range and level off after a period of 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
AAMI	60	65
Virgin Money	60	75
Medibank	59	65
ANZ	59	65
TAL	59	64
NobleOak	59	65
nib	60	75
InsuranceLine	60	75

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 which 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
Virgin Money	At heights above 20 metres Underground, underwater or offshore At speeds above 130 kph (other than as a passenger on commercial transportation) Performing stunts Handling weapons, explosives, hazardous materials or chemicals In the police, protective or custodial services As a firefighter While on active duty in the armed services Flying in an aircraft, except as a passenger on a commercial airline In the sex or adult entertainment industry Professionally in any sport, including sports involving animals
AAMI	At heights above 15 metres Underground in the mining industry
NobleOak	None listed in PDS
TAL	None listed in PDS
Medibank	None listed in PDS
ANZ	Professional sports "Special risk professions" – not detailed in PDS
nib	At heights above 20 metres Underground, underwater or offshore At speeds above 130 kph (other than as a passenger on commercial transportation) Performing stunts Handling weapons, explosives, hazardous materials or chemicals In the police, protective or custodial services As a firefighter While on active duty in the armed services Flying in an aircraft, except as a passenger on a commercial airline In the sex or adult entertainment industry Professionally in any sport, including sports involving animals
InsuranceLine	At heights above 20 metres Underground, underwater or offshore At speeds above 130 kph (other than as a passenger on commercial transportation) Performing stunts Handling weapons, explosives, hazardous materials or chemicals In the police, protective or custodial services As a firefighter While on active duty in the armed services Flying in an aircraft, except as a passenger on a commercial airline In the sex or adult entertainment industry Professionally in any sport, including sports involving animals

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.

Brand	Dangerous pastimes
Virgin Money	Training for professional sporting activities or stunts Training for sporting activities involving animals or weapons Boxing, competitive fighting, martial arts or combative sports Solo hang gliding, skydiving or parachuting Flying in an aircraft, except as a passenger on a commercial airline Being at depths below 30 metres underground or underwater Speed racing or contests involving any type of motor vehicle, motorcycle or power boat Riding trail, dirt, pit or motocross bikes Quad bike riding or riding any power-assisted off-road buggy, kart or vehicle Rock fishing, back-country skiing or snowboarding Extreme white-water canoeing or kayaking Mountain climbing, base jumping, abseiling or canyoning Being at heights above 20 metres.
AAMI	Aviation or aerial pursuit activities other than as a passenger on a commercial airline Riding on, or driving in, a self-propelled vehicle in any race, speed or reliability trial Mountaineering, abseiling, rock climbing or canyoning Diving to a depth of 45 metres or more Pothole diving, wreck diving or diving in a cave
NobleOak	None listed in PDS
TAL	Training for professional sporting activities or stunts Training for sporting activities involving animals or weapons Boxing, competitive fighting, martial arts or combative sports Solo hang gliding, skydiving or parachuting Flying in an aircraft, except as a passenger on a commercial airline Being at depths below 30 metres underground or underwater Speed racing or contests involving any type of motor vehicle, motorcycle or power boat Riding trail, dirt, pit or motocross bikes Quad bike riding or riding any power-assisted off-road buggy, kart or vehicle Rock fishing, back-country skiing or snowboarding Extreme white-water canoeing or kayaking Mountain climbing, base jumping, abseiling or canyoning Being at heights above 20 metres
Medibank	None listed in PDS
ANZ	Motor sport speed contests
nib	Training for professional sporting activities or stunts Training for sporting activities involving animals or weapons Boxing, competitive fighting, martial arts or combative sports Solo hang gliding, skydiving or parachuting Flying in an aircraft, except as a passenger on a commercial airline Being at depths below 30 metres underground or underwater Speed racing or contests involving any type of motor vehicle, motorcycle or power boat Riding trail, dirt, pit or motocross bikes Quad bike riding or riding any power-assisted off-road buggy, kart or vehicle Rock fishing, back-country skiing or snowboarding Extreme white-water canoeing or kayaking Mountain climbing, base jumping, abseiling or canyoning Being at heights above 20 metres
InsuranceLine	Training for professional sporting activities or stunts Training for sporting activities involving animals or weapons Boxing, competitive fighting, martial arts or combative sports Solo hang gliding, skydiving or parachuting Flying in an aircraft, except as a passenger on a commercial airline Being at depths below 30 metres underground or underwater Speed racing or contests involving any type of motor vehicle, motorcycle or power boat Riding trail, dirt, pit or motocross bikes Quad bike riding or riding any power-assisted off-road buggy, kart or vehicle Rock fishing, back-country skiing or snowboarding Extreme white-water canoeing or kayaking Mountain climbing, base jumping, abseiling or canyoning Being at heights above 20 metres

Picture: GettyImages

Thank you for your feedback!

Nicola Middlemiss

Nicola Middlemiss is a senior writer at Finder, focusing on all things insurance. She's been a journalist for over five years and has contributed to a wide range of industry publications including Insurance Business, MoneyMag, the Educator, Your Investment Property, Mortgage Professional Australia, and Wealth Professional. She has written over a thousand articles covering the insurance industry and now uses that insight to help Australian consumers understand their own insurance policies, and make smarter decisions. Nicola has a Tier 1 General Insurance (General Advice) certification and a Bachelor's degree from the University of Leeds.

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4 Responses

jbOctober 14, 2019

I am given $19,000 income protection for 13 months. They took 13,000. Is that possible? My salary was over 5,000 monthly.

Reply
- finder Customer Care
  
  JeniOctober 15, 2019Staff
  
  Hi JB,
  
  Thank you for getting in touch with Finder.
  
  Please note that your monthly income protection benefit varies per insurer. The monthly maximum sum insured for someone is between 50% to 85% of their salary. I suggest that you verify with your insurer first on how much is your approved income protection and how much you should get.
  
  I hope this helps.
  
  Thank you and have a wonderful day!
  
  Cheers,
  Jeni
  
  Reply
jeetNovember 4, 2017

does income protection covered mental illness

Reply
- MariaNovember 5, 2017
  
  Hi Jeet,
  
  Thank you for your inquiry.
  
  It’s possible for income protection to pay a portion of your usual income if you’re temporarily unable to work because of health issues. Similarly to TPD cover, mental illness is a significant contributor to these types of claims.
  
  You may want to discuss the history of the mental illness with your insurer to clarify the extent of the cover.
  
  You may find more useful information on this page on Life Insurance, Income Protection and Mental Illness.
  
  Best,
  Maria
  
  Reply

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Best Income Protection Insurance in Australia 2020

We scored 14 direct policies on price, features and additional options. Here's who we ranked as the best income protection for 2020.

Types

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Brands

FAQs