Cheap income protection insurance

Compare cheap income protection from around $57 per month.

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One of the easiest ways to find cheap income protection is by taking advantage of our comparison table. Rather than trawl the internet for policies, you can compare a bunch in one place, side-by-side.

To get an idea of prices, click through for a personalised quote. You'll be asked questions about your age, health, lifestyle and occupation, but take a few minutes to answer and you'll quickly be able to see who's offering the cheapest income protection policy based on your circumstances.

Some of the cheapest income protection policies on Finder's quote engine

We ran quotes from 10 of Australia's leading direct insurance brands. Quotes are based on a 35 year old office worker who doesn't smoke. You should be aware that your own personal circumstances may have an impact on the premiums you pay and these costs are not representative of the whole market.

Cheap income protection policies for 35 years old

PolicyMale Female
TAL Accelerated Protection$57.74$86.85
ClearView LifeSolutions$60.54$91.78
AMP Elevate$63.42$99.35
MLC Insurance$67.15$100.74
OnePath OneCare$69.04$102.83
Zurich Wealth Protection$77.41$118.06
BT Protection Plans$73.78$110.01
AIA Priority Protection$81.56$129.29

*Quotes are based on a 35 year old office worker who doesn't smoke. Premiums are an estimate based on finder.com.au's quote engine and are subject to change. Quotes were last checked June 2021 and are subject to change.

PolicyMale Female
TAL Accelerated Protection$93.65$137.13
AMP Elevate$106.21$169.11
ClearView LifeSolutions$112.51$177.04
OnePath OneCare$120.08$185.06
AIA Priority Protection$121.04$194.48
MLC Insurance$123.55$185.32
BT Protection Plans$134.16$208.47
Zurich Wealth Protection$134.22$208.37
PolicyMale Female
TAL Accelerated Protection$201.98$289.31
AIA Priority Protection$237.11$385.96
AMP Elevate$243.89$393.52
ClearView LifeSolutions$255.55$379.76
OnePath OneCare$266.36$404.04
MLC Insurance$283.01$424.70
Zurich Wealth Protection$291.53$454.75
BT Protection Plans$313.44$454.62
Premiums are based on an office worker in NSW aged 45 or 55 who doesn't smoke. Premiums are an estimate from the finder.com.au quote engine. Quotes were last checked June 2021 and are subject to change.

Start your search for low cost cover by comparing some of our partners

Name Product Maximum Monthly Benefit Maximum % of Income Covered Maximum Benefit Period Waiting Period Options
AAMI Income Protection
$10,000
75%
Up to
5 years
14, 28, 60 or 90 days
If you’re an existing AAMI customer, you can save 5% on income protection. New customers can get one month free by paying annually.
Suncorp Income Protection
$10,000
75%
Up to
5 years
14, 28, 60 or 90 days
Sign up and become a member of Suncorp Benefits. Access savings of up to 15% from major retailers. Existing members can get a 5% discount off their policy.
NobleOak Income Protection
$25,000
75%
Up to 65
30 or 90 days
With NobleOak, you can lock in a policy with a benefit period covering you up to the age of 65. Cover limits may go as high as $25,000.
Insuranceline Income Protection
$10,000
75%
Up to
5 years
14, 28, 60 or 90 days
Get a $100 bonus gift after 2 months. Plus, and get 12 months cover for the price of 11 if you pay annually. T&Cs apply.
Commbank Income Protection by AIA Australia
$10,000
75%
Up to
2 years
30, 90 days
Get income protection online in a few simple steps. Receive access to the AIA Vitality program and a 5% discount if you hold both life insurance and income protection policies with AIA & Commbank.
RAC Income Protection
RAC Income Protection
$10,000
75%
Up to
2 years
30 or 90 days
You can get cover of up to 75% of your income, to a limit of $10,000 per month, with RAC.
RACQ Income Protection
RACQ Income Protection
$10,000
75%
Up to
2 years
30 or 90 days
Easily purchase RACQ income protection online, with access to the AIA Vitality program and a 5% discount for joint policies.
Bendigo MaxLife Income Protect
Bendigo MaxLife Income Protect
$10,000
75%
Up to
2 years
30 or 90 days
Take advantage of a 5% joint policy discount with Bendigo. Also, you can unlock policy savings through the wellbeing programme AIA Vitality.
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Still have income protection questions?

Income protection insurance can be tricky to understand at first, but don't give up. Give our beginner's guide a go and see if that helps.

If you're looking for a bit more info on how pricing works, check out our research on the average cost of income protection insurance.

If there's still something you can't find, feel free to drop us a comment. We'll do our best to clear things up for you.

Follow these 9 steps to keep your income protection premiums affordable

One of the great benefits of income protection insurance is that it can be customised with additional cover options to be tailored to suit your specific needs and circumstances. If you have a tight budget, there are a number of things to consider to help keep your policy affordable:

  1. Determine an appropriate waiting period. The waiting period is the period of time following when you are first unable to work to when you receive your first payment. It is important to determine the appropriate waiting period that suits your financial position and other benefits that you may be entitled to. Consider how long you are entitled to receive sick pay from work and for how long your savings can sustain your financial commitments comfortably until the benefit payment starts.
  2. Determine an appropriate benefit period. The benefit period is the period of time that you will receive payments from your insurer. It's worth considering your own situation and other income streams that you may be able to draw on when choosing an appropriate period.
  3. Features and additional options on your policy. One of the benefits of income protection is that you can tailor your policy to match your personal situation. You can add extra options for extra payments for losses incurred during your recovery. However, remember that these options will incur a premium loading, so it is important to consider the options that can offer the most benefit for when you need to lodge a claim.
  4. Policy structure - agreed value or indemnity value. Indemnity policies can be 20% cheaper than agreed value policies.
  5. Premium structure - stepped or level premiums: Level premiums will lock in your premium rates throughout the life of the policy. Level premiums can be quite expensive initially, but in the long-term, they work out to be more affordable. The reason for this is because the monthly premium cost is calculated on average over the life of the cover. Stepped premiums, will start off lower but increase gradually overtime as the policy remains in force.
  6. Apply for cover younger. Applying at a younger age will mean you are able to lock in a more competitive rate than when you are older and more susceptible to pre-existing medical conditions.
  7. Premiums are generally tax-deductible. Income protection premiums are generally tax deductible if you pre-pay your premium before 30 June. Whether premiums are tax-deductible will depend on whether or not cover has been funded inside or outside of superannuation.
  8. Give up smoking. As is the case with life insurance, whether or not you smoke can have a significant impact on the premium you pay with smokers paying as much as double in premiums. Most insurers will let you have your policy reviewed to reflect non-smoking status if you have not smoked for two years.
  9. Compare options from a number of insurers. Going with the first policy you find may not only lead you to having a policy not suitable to your actual needs but also paying more than you have to for cover. An insurance consultant can help you compare a number of insurers.

Income protection discounts to help you save on cover

Deal

AAMI customers save 5% on income protection

Verified Today
Existing AAMI customers save 5% on their income protection premiums. T&Cs apply.
Deal

Get 12 months income protection for the price of 11

Verified Today
New members will get a one month free when paying annually. T&Cs apply.
Deal

Get a $100 bonus gift after 2 months.

Verified Today Expires 1 Oct 2021
Plus, get 12 months cover for the price of 11 if you pay for Income protection annually. T&Cs apply.
Deal

Get 12 months income protection for the price of 11

Verified Today
New members will get a one month free when paying annually
Deal

Save 5% on Suncorp Income Protection for existing customers

Verified Today
Get a 5% discount if you have a car or home insurance policy with Suncorp. T&Cs apply.
Deal

Access savings of up to 15% from major retailers

Verified Today
Get access to Suncorp Benefits when you sign up to an eligible policy, and save up to 15% on gift cards from retailers like Woolworths and Myer. T&Cs apply.

But I am covered under Worker’s Compensation?

While short-term protection is usually provided by your employer, such as employee sickness benefit entitlements or workers compensation, it is important to note that the benefit is often not sufficient enough to cover your daily living expenses and other financial commitments, such as your mortgage repayments. Income protection insurance can provide the protection that is designed to act as a financial buffer for when you are too ill to return to work for an extended period of time.

Benefits of getting cheap income protection insurance quotes online

Many Australians these days look for cheap income protection insurance online and there are many reasons why this method of finding and buying income protection cover has become so popular. These include:

  • Ability to compare multiple policies at once. There is an abundance of income protection policies and providers online. An insurance consultant can provide the service of comparing multiple policies all at once, which can boost your chances of finding the right cover at the right price.
  • Access to experienced insurance advisers. By getting income protection quotes online, you have the option to speak to an insurance consultant who can provide tailored recommendation based on the quote that you have received. Insurance advisers have the expertise and knowledge of the market to be able to find policies that match your needs with competitive premiums.
  • Time effective. You can save a lot of time by going online to find cheap income protection insurance. To get a quote, you simply fill in your personal details such as your age, gender, occupation, and your income. An insurance adviser will then contact you to discuss policy options. If you would prefer to purchase your policy direct, cover can be arranged entirely online or over the phone in through a direct brand.
  • Your information is safe and secure. The personal details that you have provided when submitting an enquiry for an income protection quote will be securely transferred to the team of insurance advisers. Your details will be used solely to confirm your quote request and to produce a preliminary income protection quote.

Should I just look for the cheapest policy*?

While the cost of income protection is an important consideration, it is vital that you do not compromise on cover in order to cut costs. If you purchase income protection insurance based purely on the price of the cover, without taking the time to review the actual conditions of the policy, you could find yourself exposed to losses your situation requires cover for.

Consider all your options

Many people make the mistake of going with the first policy they come across. The Australian insurance market offers a diverse range of policies that can be funded both inside and outside of super or bundled with other types of cover. Speaking with a consultant to help you design a policy offering suitable cover can make the process much more straightforward and give you access to great savings on your premium.

Why is it important to protect my income?

Statistics have shown that many Australians still neglect the importance of having a form of protection in place for their ability to earn an income in case of serious illness or accident. As much as 83% of Australians will not hesitate to insure their cars (AAMI, 2008). However, when compared to insuring their income in the event they are unable to work due to illness or injury, only a mere 31% have income insurance in place (TNS/IFSA, 2006). Your income should be considered your most important asset. Without it, you lose the ability to maintain your financial commitment and take care of those who depend on you. This is when having income protection insurance in place can be valuable, as it generally provides a monthly benefit to replace your income of up to 75% of your average salary.

Am I better off getting cover through my super?

In addition to being purchased as a standalone policy, income protection insurance is also available through your superannuation fund. Purchasing cover through super can be more affordable option - the group buying power of super funds mean cheaper cover for you - but there are also a few drawbacks to taking out cover this way. Examine the lists of pros and cons below to help you decide whether taking out cover through super is the best* option for you.

Benefits of taking out cover through super

  • It’s generally cheaper. Super funds can purchase group income protection policies at wholesale prices, which means the savings get passed on to you in the form of cheaper premiums.
  • No medicals required. You will not have to undergo any medical tests to obtain income protection coverage through your super.
  • Cover for high-risk occupations. While standalone income protection policies may impose restrictions when it comes to insuring people who work in hazardous occupations, no such issues exist with super cover.
  • Tax-effective premium payments. Your premium payments are taken from your super contributions rather than your after-tax income.
  • You don’t have to dig into your own pocket. Your insurance premiums are funded from your superannuation contributions rather than from the money you have available for day-to-day expenses.

Drawbacks of taking out cover through super

  • Limited cover. Income protection through super offers a lower level of cover than standalone policies.
  • Can’t be tailored to your needs. Unlike standalone policies which can be adjusted to suit your personal requirements, cheap income protection through your super cannot be tailored to your needs.
  • Claims are more complex. You will need to convince both the insurance provider and the fund trustee of the legitimacy of your claim in order to receive a benefit. You will need to satisfy both the insurance contract and the super funds temporary incapacity conditions of release
  • Moving funds. If you move to a different super fund your cover may end, or if you change jobs and start receiving contributions into a new fund you may have two policies in place with different super funds.
  • What about your retirement? You’ll need to dip into your retirement savings in order to fund your premium payments.

Traps to avoid when trying to find cheap income protection

  • Base your decision solely on price. While it's important to find cover that fits within your budget, it's no good having cover in place that doesn't provide the protection you actually need. Make sure you assess other benefits you are entitled to and what would need to be covered if you were unable to work to ensure you have enough cover in place.
  • Beware of the drawbacks of cover inside superannuation. While it may be a more affordable option, funding cover through your super is not without it's drawbacks. Consider the tax implications of this option, increased difficulty of claiming and also that at the end of the day, you are taking funds accumulated for your retirement.
  • Cheaper cover may mean increased terms and conditions. Cheaper policies are generally going to have more exclusions in place for when a claim can/can't be made. It's crucial to be clear on when you will/won't be paid and how it compare across different policies.
  • Don't get stuck with a policy you can't adjust. Cheaper policies will generally be less flexible in terms of making changes to your policy in the future as your situation changes.
  • Don't lie when applying to save a few dollars. It may be tempting to skip out on a few details about pre-ex*sting conditions or whether you smoke when applying but your only risking having your policy rejected in the event of a claim. Insurers go to great lengths when investigating claims in reviewing your medical history and any other factors relevant to your claim.

Simple steps for selecting the right income protection

Are you ready to start your journey to get yourself covered and find cheap income protection quotes? Being prepared for the application stage when buying income protection insurance online can ensure that the process goes as smooth as possible.

Enter your details and one of our partner brokers will call you. They will discuss your quote, options and available products.

Sex
Do you smoke?

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

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Some final questions you might have about getting low cost cover

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*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

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