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Income protection insurance calculator

Use our quick and easy income protection calculator to work out what you may need.

What you need to know

  • Income protection can be a life saver if you cannot work because of injury of illness.
  • How much cover you can get is based on your income and insurance company.
  • Generally, you can get a policy that will pay up to 75% of your current income.

Income protection insurance calculator

This quick calculator spits out the maximum income protection cover you can get from the major insurers in Australia. You don't need to take out the maximum possible policy size, but this will give you a place to start looking for policies.

Gross annual income
$
Percentage covered

We estimate that you could get...(click Calculate to see results)

Compare income protection insurance quotes

Name Product Maximum Monthly Benefit Maximum % of Income Covered Maximum Benefit Period Average Claims Acceptance Rate Average Claim Time Sum Insured
TAL Accelerated Protection Income Protection
$30,000
Up to 70%
Up to
Age 65
Data not available
1.3 months
$1,305 million
Get up to 70% of your income covered with flexible short and long term benefit periods.
AAMI Income Protection
$10,000
Up to 75%
Up to
5 years
Data not available
2.8 months
$222 million
Save up to 10% on premiums every year for the life of the policy on AAMI Income Protection. Offer ends 30 Sept 2024. T&Cs apply.
ahm Income Protection
$10,000
Up to 70%
Up to
5 years
Data not available
Data not available
Data not available
Get 10% off your first year of ahm Income Protection when you apply by 31 July 2024. T&Cs apply.
Medibank Income Protection
$12,500
Up to 70%
Up to
5 years
Data not available
Data not available
Data not available
Save 10% on your first year of Medibank Life Insurance when you apply by 31 July 2024. T&Cs apply.
Zurich Ezicover Income Protection
$12,000
Up to 70%
Up to
5 years
Data not available
Data not available
$5 million
Get your first month of cover free when you buy Zurich EziCover Income Protection.
Insuranceline Income Protection
$10,000
Up to 75%
Up to
5 years
95.70%
2.8 months
$222 million
Protect your family with an Insuranceline policy and you can go into the draw for a chance to win a $1,000 gift card. New Customers only, T&Cs apply. Competition entries close on 31 July 2024.
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How much income protection cover do you need?

When you get income protection, you'll ideally want to get cover for what you'll need to get by if you lose your income. 75% of your current income is a decent place to start, but you may not need the whole amount. If you can drop your covered amount you'll lower premium, which is cool too.

You should have a think about how much income protection you actually need.

Example total of costs vs a $4,000 monthly income

In this case, the applicant may consider taking out 61% of their $4,000 income if they simply want to cover their expenses.

Expense Amount per month
Rent$750
Credit card debts$300
Costs of living e.g. utilities, food.$800
Other expenses e.g. childcare.$600
Total expenses$2,450
Monthly income$4,000
Percentage of income61.45%

Note: This is for illustrative purposes only. Needs will vary depending on personal circumstances.

How are income protection benefits are determined?

There are several factors that influence the amount of the monthly benefit you will receive from income protection insurance, including:

  • Your income. Income protection policies will only cover a set limit of your pre-disability income, usually up to 75 or 85 per cent. The insurer will assess your total income when determining your monthly benefit amount.
  • Agreed value or indemnity value. These are the two different types of income protection cover. Under an agreed value policy, your benefit amount is calculated based on a pre-determined income amount that you and your insurer agree upon when you apply for cover. Meanwhile, an indemnity value policy requires you to prove your income when you make a claim, so the benefit amount you receive is based on your income at that point in time.
  • Policy limit. Each insurance brand will impose a limit on the maximum benefit amount they will pay each month, for example $10,000 or $12,000, so this could obviously impact upon the monthly benefit you will receive.
  • The level of cover you select. Before you apply for income protection insurance, you’ll need to sit down and work out exactly how much cover you need. Once you’ve worked out the monthly benefit you will need to pay your ongoing expenses and continue to provide for your family, you’ll be able to select your desired level of cover.
  • The benefit period. When you apply for cover, you’ll be able to select the maximum amount of time for which your policy will pay a benefit - for example, you may have to choose between benefit periods of six months, 12 months, two years, five years, or until you reach the age of 65.
  • Any additional options. Most income protection insurance policies allow you to add a range of additional cover options to your policy for an additional premium. If you decide to add extra cover to your policy for rehabilitation expenses or childcare costs, for example, this will have an impact on the total benefit amount you receive.

Why should I calculate how much covered I need?

Working out exactly how much income protection cover will be adequate for your needs can be a tricky task. There’s a huge range of expenses to consider, including everything from mortgage repayments to school fees, plus you’ll also need to take into account whether you have any savings tucked away or you will be partially able to rely on your partner’s income.

While it can be difficult to work out your ideal benefit amount, it’s essential that you do so before you apply for cover. You need to be sure that the level of income protection cover you have in place will be enough for you to manage financially if you’re unable to work due to illness or injury.

That’s why this income protection calculator is such a good idea. It allows you to calculate your monthly benefit amount and work out if it will allow you to adequately provide for your family and cover your ongoing expenses. So enter your income details into our income protection calculator and start working out the right level of cover for you.

Why should I consider income protection insurance?

When you take the time to think about it, your income is actually one of the most important assets you have – if not the most important. So if you’re injured or fall ill and you suddenly can no longer rely on your steady stream of income, your comfortable and secure financial situation can get pretty uncomfortable pretty quickly.

Even though you don’t have money coming in from week to week, the ongoing expenses of everyday living keep stacking up. There are mortgage repayments to make, credit card debts to clear, bills to pay, groceries to buy and a range of other expenses to manage. And while you deal with the financial stress of keeping your head above water, there’s also the physical and emotional strain as you try to recover from your medical problems as quickly as possible.

That’s why income protection insurance is such a good idea for anyone who relies on the income from their occupation to meet day-to-day expenses. It provides a financial safety net in case you’re unexpectedly struck down by illness or injury, replacing up to 75% of your regular income each month while you’re unable to work. This provides much-needed peace of mind and allows you to focus on your recovery.

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Frequently asked questions

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Editor, Insurance & Innovations

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

Gary Ross's expertise
Gary Ross has written 730 Finder guides across topics including:
  • Health, home, life, car, pet and travel insurance
  • Managing the cost of living

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