- Top pick: Competitive pricing
- Top pick: Claims experience
Best Income Protection Insurance in Australia
We scored 11 policies on price, features and add-ons. Here's who we ranked as the best income protection insurance for cost, claims experience, seniors and mental health.
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Finder Awards: Best Income Protection Insurance Australia
Winner: NobleOak Income Protection Insurance
NobleOak won the Finder award for best income protection for the second year running thanks to their affordable cover and high-quality policy features.
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. It was also the only brand we looked at that offered the flexibility of interim cover, meaning you have insurance while your application is being underwritten but hasn't been approved yet.
Why trust our picks?
11
Brands compared
16
Different profiles
448
Quotes generated
We created an algorithm that scores policies based on more than 6 different factors, including price, maximum monthly benefit, claims outcomes and extra features. Using 16 different customer profiles, we requested quotes from 11 different insurance brands.
In total, we looked at 448 quotes. We then applied our algorithm to those 448 quotes to come up with an overall score for each brand. The highest-scoring brand was our winner.
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 2021 Finder Awards for Best Income Protection Insurance looked at 11 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 of the entire market.
Best Income Protection Insurance in Australia: 2021 Finalists
After reviewing 11 direct insurance brands across Australia, these were the 3 highest scoring providers that currently offer new policies.
| Policy | Maximum coverage offered | Stand out features and benefits | Apply |
|---|---|---|---|
 | 70% of monthly income up to $30,000 |
| Get quote |
 | 70% of monthly income up to $10,000 |
| More info |
 | 70% of monthly income up to $30,000 |
| More info |
Top picks for income protection insurance
Using the data from our awards research, we selected some of the standout brands we thought you should know about. While we've tried to cover as many different details as possible, our picks don't reflect personal circumstances and it's up to you to decide what's right for you.
- Best policy for competitive pricing
- Best policy for seniors
- Best policy for mental health conditions
- Best policy for for claims experience
Best income protection policy for seniors
Income protection insurance is typically available up until age 60. Insuranceline offered the highest entry age (60) and policy expiry age (65). They were followed by AAMI, who offer a maximum entry age of 60 and a policy expiry age of 65. TAL edged out NobleOak in third as they offer a maximum entry age of 60, which is 4 years more than NobleOak.
Here's a rundown of the maximum entry age, and the age at which your policy would expire, of the brands we looked at in this category.
| Insurer | Maximum entry age | Policy expiry |
|---|---|---|
| Insuranceline | 60 | 65 |
| AAMI | 60 | 65 |
| TAL | 60 | 65 |
| NobleOak | 55 | 65 |
Best income protection policy for mental health conditions
According to healthdirect.gov.au, 1 in 5 Australians suffer from a mental illness every year. Unfortunately, most income protection policies won't pay out if you're unable to work due to mental illness.
However, we found 7 income protection brands at the time of writing – out of 18 policies we looked at – who offer some cover as standard. These are:
- AAMI
- Aspect
- Insuranceline
- MLC
- Suncorp
- TAL
- Zurich
You won't be able to claim on mental health conditions within 6 months of taking out cover. Plus, benefit periods are limited to 2 years in total.
Additionally, NobleOak, AIA and BT each offer mental health cover if you opt in to Total & Permanent Disability (TPD) Insurance.
We've chosen TAL as the winner for best income protection for mental health conditions, as they offer a range of partner programmes that can support your mental health and wellbeing.
Did you know? A Productivity Commission report by the government has found that only 8% of those who applied for income protection insurance got cover without exclusions or extra costs.
Best income protection policy for claims experience
NobleOak was the stand out choice for its claims experience as:
- At 98.4%, it had the highest paid claims rate of 11 brands on Moneysmart's claims comparison tool. The industry average was 94.8%
- CommInsure came second, paying 96.4% of claims while TAL was third with 96.1%
- NobleOak also scored 0 disputes per 100,000 lives insured – the industry average was 174.6
- Finally, its policy cancellation rate of 3.4% was lower than any other provider
*These Moneysmart figures are for Income Protection Insurance bought through a financial adviser between 1 July 2020 and 30 June 2021.
Need more help choosing the right income protection for your needs?
To chat with an expert broker about shaping a policy to meet your needs, simply fill out the form below.
An adviser can help you find cover from trusted life insurance brands.
- Get competitive quotes from multiple brands
- Lower rate of declined claims (according to ASIC)
- Save time and effort
How can I find the best income protection insurance policy?
There are 5 key features to keep an eye on when choosing the best income protection insurance for you:
Benefit period
This is how long benefits will be paid for. Usually, you'll be able to customise this to some degree but insurance companies will have a maximum limit – typically 2 or 5 years.
Waiting period
Once you're unable to work, you'll need to wait a specific 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 2 weeks and 2 years. Read more about the waiting periods for income protection.
Maximum cover
Insurers will also put caps on the amount you can claim. Typically, 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.
Cost
Prices can vary a lot with this type of insurance, 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
It's really important to check the benefits, exclusions and restrictions of your policy before you buy. Not doing so could lead to unsuitable cover that doesn't fit your needs and doesn't pay out when you come to make a claim.
Important: Never buy a policy solely based on price
It's really important to check the benefits, exclusions and restrictions of your policy before you buy. Not doing so could lead to unsuitable cover that doesn't fit your needs and doesn't pay out when you come to make a claim.
Compare more income protection insurance policies in Australia
Looking for more options? Use the comparison tool below to compare key benefits of different income protection policies at a glance.
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Ask an Expert
I am given $19,000 income protection for 13 months. They took 13,000. Is that possible? My salary was over 5,000 monthly.
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
does income protection covered mental illness
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. Similar 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