Income protection insurance calculator

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.

Compare income protection insurance quotes

How we calculate Income Protection Finder Scores

Read full methodology

What different scores mean

9+

Excellent

These products offer great value, with a good score across both features and price.

7+

Great

These are competitive products, though they didn't quite get top scores.

5+

Standard

These products might offer less value or command a higher premium than others in the market.

0+

Basic

These products might only offer a basic set of features or aren't very competitive on price.

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Finder Score	Maximum monthly benefit	Maximum % of income covered	Maximum benefit period	Offer
Promoted Finder score 9.8 Excellent TAL Accelerated Protection Income Protection Finder Award	Finder score 9.8 Excellent	$30,000	Up to 70%	Up to Age 65	Get up to 70% of your income covered with flexible short and long term benefit periods.	Get quote More info Compare product selection Compare	loading
Promoted Finder score 8.7 Great HCF Income Protect Insurance	Finder score 8.7 Great	$10,000	Up to 70%	Up to 12 months	Cover up to 70% of your income by choosing a fund that puts members first.	Get quote More info Compare product selection Compare	loading
Finder score 8 Great AAMI Income Protection	Finder score 8 Great	$10,000	Up to 75%	Up to 5 years	Purchase a new AAMI Income Protection policy and save $100 on your first year.	Get quote More info Compare product selection Compare	loading
Finder score 7.4 Great Medibank Income Protection	Finder score 7.4 Great	$12,500	Up to 70%	Up to 5 years	Get your 1st month free when you use promo code MB1MF and get cover by 2 Feb 2026. T&Cs apply.	No medicals or blood tests needed to apply.	Get quote More info Compare product selection Compare	loading
Finder score 6.7 Standard ahm Income Protection	Finder score 6.7 Standard	$10,000	Up to 70%	Up to 5 years	Get a 10% discount if you're already an ahm Health Insurance member.	Get quote More info Compare product selection Compare	loading

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How we picked these

Finder Score - Income Protection

Income Protection is a little complicated and a lot overwhelming. That's why we made the Finder Score, to make it easier to compare Life Insurance products against each other. Our experts analysed over 12 products and gave each one a score rank out of 10.

But a higher score doesn't always mean a product is better for you. Your situation is unique, so your policy choice will be too. Don't think of Finder Score as the final word, but as a good place to start your life insurance comparison.

Read the full methodology

Speak to an insurance specialist to help you find personalised cover

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.

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.

Frequently asked questions

• How much income protection cover do I need?

  In order to work out how much cover you require, you’ll need to consider your current financial circumstances and how they will change in the future. Calculate what your ongoing expenses are, how much of your income is used to meet those expenses, and whether you would be able to rely on any other sources of income if you were unable to work.

• Can my choice of benefit period affect the cost of income protection premiums?

  Yes. The longer the benefit period you choose, the more you will have to pay for income protection cover.

• What other factors affect the cost of premiums?

  Some of the other factors that affect the cost of income protection premiums include your age, gender, smoking status, overall health, occupation and lifestyle.

• When won’t an income protection benefit be paid?

  Some common situations when an insurer won’t pay an income protection benefit include if your claim arises from an intentional self-inflicted act, if the claim arises because you were under the influence of alcohol, or if the claim is for any mental disorder or mental illness. Check your PDS for a full list of cover exclusions.

Written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 589 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living