Best Income Protection Insurance in Australia

Get help finding the best income protection

Our insurance team has gathered 200+ quotes from 14 of Australia's most popular providers.

The shortlist below is based on 2025 Finder Income Protection Awards accounts for both pricing and features.
All the policies in this guide can pay you a monthly salary if you need to take time off work due to a sickness or injury. Remember, there's no single best income protection policy that suits everyone's needs, since we all have different budgets and priorities. The below should be used as a guide only.

Summary

• Top pick for best income protection: TAL
• Top pick for cheap income protection: AAMI
• Top pick for highly commended income protection: NobleOak

Top pick for best income protection: TAL

Pros

• It has a higher maximum monthly benefit of $30,000. Other income protection policies only cover up to $10,000 per month.
• You can add death cover as an optional extra.
• There are flexible benefit periods so you can pick one that best suits your needs.

Cons

• It can cover up to 70% of your monthly income, which is pretty standard among most insurers, but there are others who cover up to 75% and more.

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What you're covered for

• Maximum monthly benefit: $30,000
• Maximum percentage of income covered: 70%
• Online quote offered? Yes
• Expiry age: 65

• Benefit period options: 1, 2 or 5 years, up to age 65
• Death cover: Yes
• Underwriter: TAL Life Limited

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Why we chose TAL

We chose TAL as the top pick for Best Income Protection because it was the 2025 winner of the Finder Income Protection Awards. It won because it has generous benefit limits, yet remains comparatively cheap.

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Top pick for cheap income protection: AAMI

Pros

• One of the cheapest income protection policies available online, according to Finder research.
• You can be covered for up to 75% of your monthly income.
• Has flexible benefit period options available.

Cons

• It will only cover up to $10,000 per month.
• There is no option to include death cover on your policy.

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What you're covered for

• Maximum monthly benefit: $10,000
• Maximum percentage of income covered: 75%
• Online quote offered? Yes
• Expiry age: 65

• Benefit period options: 6 months, 1, 2 or 5 years
• Death cover: No
• Underwriter: TAL Life Limited

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Why we chose AAMI

We chose AAMI as our top pick for cheap income protection because it was one of the cheapest providers of the 11 we researched.

It was also highly commended in the 2025 Finder Income Protection Awards because it offers strong benefit limits but at a cheaper cost.

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Top pick for highly commended income protection: NobleOak

How can I find the best income protection insurance policy?

Here are 4 features to keep an eye on when choosing the best income protection insurance for you:

Benefit period

This is how long you will be paid. Usually, the insurer will give you a few options to choose from – e.g. 1, 2 or 5 years. The smaller the benefit period you choose, the cheaper your policy will be.

Waiting period

Once you're unable to work, you can submit your claim. You'll then need to wait a specific time before your policy begins. This is the waiting period.

For example, say you submit your claim on 1 November and you select a 14-day waiting period, your policy will begin on 14 November. You will receive your first monthly payment on 14 December.

Most policies let you choose from a few different waiting periods – the bigger the waiting period, the cheaper your policy will be. If you think you can get by on sick leave for a while, it might be worth selecting a bigger waiting period.

Maximum cover

Insurers will also put caps on the amount you can claim per month. 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. If you earn more than that per month, insurers such as TAL and NobleOak go up to $30,000.

Stepped or level premiums

Stepped premiums go up as you get older but tend to start off cheaper. Level premiums don't increase over time but typically cost more to start off with. If you're worried about payments becoming unaffordable over time, level premiums might be best for you. Otherwise, it's likely that stepped premiums will be cheaper in the shorter term.

Our expert says

"An easy way to reduce your income protection premiums is to choose a longer waiting period. I have my policy set at the maximum: 90 days. I figure this is for a worst case scenario and if I claim on this policy, I should have enough savings to cover me for 90 days while I wait for benefits to kick in. In the meantime, my premiums are quite a bit lower."

Sarah Megginson

Personal finance expert + media spokesperson

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FAQs

• What is the best income protection insurance policy in Australia?

  According to the 2025 Finder Income Protection Awards, TAL is the best income protection policy. This is because it offers generous benefit limits at a competitive price. However, please note that what's best is different for everyone based on your personal circumstances, budget and policy needs. It's always best to get quotes from a few different providers and see what works best for you.

• How much should my income protection cover?

  Income protection policies typically cover up to 75% of your monthly salary. You won't find a policy that covers you for more than what you currently earn. To know what level of coverage would be adequate for you, it can help to make a list of your expenses and see what portion of your salary goes towards covering them.

• How long is income protection paid for?

  The benefit period will vary by provider but you can expect the following options when you take out a policy: 1 year, 2 years, 5 years.

• How does income protection work?

  Income protection pays a monthly wage if you need to take time off work due to a sudden accident or illness. Most insurers will pay up to 70% of your pre-tax income. They'll also set a maximum benefit, usually around $10,000 monthly.

• Does income protection cover redundancy?

  No, income protection will not pay out if you're made redundant.

Written by

Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio