Our insurance team has gathered 260+ quotes from 11 of Australia's most popular providers.
The shortlist below is based on 2024 Finder Awards, Australian Prudential Regulation Authority (APRA) data, AFCA complaints and customer reviews, plus other factors our team believe are beneficial, such as mental health and pre-existing cover.
All the policies in this guide can pay you a monthly salary if you need to take time off work due to a sickness or injury. Remember, there's no single best income protection policy that suits everyone's needs, since we all have different budgets and priorities.
Why you can trust our research
11 income protection providers analysed
170+ prices gathered
100+ hours of research
TAL is our experts' top pick because it's the cheapest policy on average and the 2024 Finder Award winner – you can start receiving 70% of your monthly income within 2 weeks of submitting a claim.
We picked TAL because it's the 2024 Finder Income Protection Award winner. To determine the winners, we got 170+ quotes across 11 income protection providers.
To get a fair average, we used 16 different profiles to gather our quotes. These ranged from a non-smoking 35-year-old white collar female to a blue collar 45-year-old male smoker.
Our experts then researched and rated 7 features across 11 policies. The winner was based on a split of the features and price score.
The full methodology behind our awards
AAMI income protection could be good if you want a policy that covers mental health or pre-existing conditions. It's one of the few insurers that clearly states it can cover you.
We looked at 11 income protection insurance policies and selected our top pick based on the following benefits: claim benefit period, qualifying period and pre-existing conditions cover.
Other insurers including Insuranceline, Zurich and Suncorp can cover you if you need to take time off due to a mental health condition. However, only Suncorp specifies that it will also cover pre-existing conditions. We chose AAMI though because it received a higher score in our Finder Awards. We didn't look at every insurer on the market.
The full methodology behind our awards
Insuranceline income protection is a good policy if you want cover for a larger percentage of your salary (75%) and access to some sign-up perks others don't offer.
We selected Insuranceline because it performed strongly in the Finder Awards for features. This was largely because it is one of the only insurers to cover up to 75% of your salary, comes with several waiting period options and pay you an income for up to 5 years.
The full methodology behind our awards
NobleOak income protection is a good option if you want a trusted insurer that offers good cover, including cover for up to 70% of your pre-tax income and tax-deductible premiums.
We picked NobleOak because it was a highly commended brand in the 2024 Finder Income Protection Awards. To determine the scores, we got 170+ quotes across 11 income protection providers.
To get a fair average, we used 16 different profiles to gather our quotes. These ranged from a non-smoking 35-year-old white collar female to a blue collar 45-year-old male smoker.
Our experts then researched and rated 7 features across 11 policies. The winner was based on a split of the features and price score. NobleOak came in second place. TAL was first because it was cheaper and has more waiting period options.
The full methodology behind our awards
Here are 4 features to keep an eye on when choosing the best income protection insurance for you:
This is how long you will be paid. Usually, the insurer will give you a few options to choose from – e.g. 1, 2 or 5 years. The smaller the benefit period you choose, the cheaper your policy will be.
Once you're unable to work, you can submit your claim. You'll then need to wait a specific time before your policy begins. This is the waiting period.
For example, say you submit your claim on 1 November and you select a 14-day waiting period, your policy will begin on 14 November. You will receive your first monthly payment on 14 December.
Most policies let you choose from a few different waiting periods – the bigger the waiting period, the cheaper your policy will be. If you think you can get by on sick leave for a while, it might be worth selecting a bigger waiting period.
Insurers will also put caps on the amount you can claim per month. You'll only be able to earn a percentage of your current salary (usually up to 70%).
Insurers also set a maximum monthly benefit, typically around the $10,000 mark. If you earn more than that per month, insurers such as TAL and NobleOak go up to $30,000.
Stepped premiums go up as you get older but tend to start off cheaper. Level premiums don't increase over time but typically cost more to start off with. If you're worried about payments becoming unaffordable over time, level premiums might be best for you. Otherwise, it's likely that stepped premiums will be cheaper in the shorter term.
Sarah's saving tip
An easy way to reduce your income protection premiums is to choose a longer waiting period. I have my policy set at the maximum: 90 days. I figure this is for a worst case scenario and if I claim on this policy, I should have enough savings to cover me for 90 days while I wait for benefits to kick in. In the meantime, my premiums are quite a bit lower.— Sarah Megginson, personal finance expert
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