Cheap income protection insurance

Income protection discounts to help you save on cover

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AAMI customers save 5% on income protection

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

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Get 12 months income protection for the price of 11

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New members will get a one month free when paying annually

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Save 5% on Suncorp Income Protection for existing customers

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

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Is it cheaper to get income protection cover through my super?

Purchasing cover through your super fund can be an affordable option - the group terms offered may lead to cheaper cover than with a standalone policy. The application process is quick (acceptance is often automatic, in fact).

But as well as pros, there are some important cons to be aware of when taking out cover through super.

Frequently asked questions

• Am I already covered under Worker's compensation insurance?

  While short-term protection is usually provided by your employer, such as employee sickness benefit entitlements or workers' compensation, it's 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.

  Workers' compensation will only provide cover for injuries and illness sustained at work. Some other drawbacks of this type of cover to Income Protection include;

  • Cover is generally capped at 130 weeks
  • Cover is usually only available to self-employed workers
  • In order for a benefit to be paid, you must be able to prove that the employer was negligent

  Whereas 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.

• Are my premiums tax deductible?

  Income protection premiums are generally tax deductible if you pre-pay your premium before 30 June. Often, whether or not premiums are tax-deductible will depend on whether or not cover has been funded inside or outside of superannuation. Ask an accountant if you need more help with your tax.

• Should I actually look for the cheapest income protection 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.

• What's best to avoid when finding cheap income protection?

  • Basing 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.
  • Not understanding 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.
  • Getting 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.
  • Failing to be accurate with your application. It may be tempting to skip out on a few details about pre-existing 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.

• Will my premiums increase as I get older?

  Generally, yes, premiums will increase with age. Often this will be on your 'policy anniversary' each year. That's unless you choose a level premium structure. This type of policy will cost the same over the life of the plan, but you can expect to pay a higher premium from day one.

• What will happen if I can no longer pay my premiums?

  Your insurer would be in a position to cancel your policy, unfortunately. Most insurers will allow for a 30-day window following the date payment is due for you to make the payment.

• Do I have to pay my premiums if I am unable to work?

  Typically, no. You won't need to pay your premium during any claim period.

• Can I get income protection if I am over 65?

  No – the maximum benefit period usually cuts off at 65 years of age.

• Can I receive benefits of more than 70% of my income?

  Despite a recent tightening of benefits by the industry, income ptorection insurance policies can enable you to receive more than 70% of your cover; sometimes, this additional amount will need to be contributed to your superannuation. At the time of writing, Aspect Income Protection lets you protect up to 85% of your income to help maintain your family's lifestyle.

• Can I cancel my policy and receive my premiums back?

  You'll generally be eligible for a premium discount if you cancel your policy within the cooling-off period. But otherwise, no – unfortunately you won't.

• Can I adjust my income protection as I get older?

  Yes you can choose to increase or reduce your level of cover as you see fit to meet your cover requirements as your situation changes. You may be required to undertake additional medical underwriting if you are looking to increase your level of cover.

• Am I classed as a non-smoker?

  You are classed as a non-smoker so long as you haven't smoked tobacco or any other substance for a continuous period of 12 months.