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Loss of job insurance

Income protection insurance used to offer cover for loss of job; it's typically no longer available to new customers.

Must read: Redundancy cover

Since COVID, insurers have stopped offering cover if you lose your job. If you have an existing policy with this type of cover, your insurance should still be honoured but you should always double check directly with your provider.

Which insurers offer job loss insurance?

Although brands typically no longer offer this cover, we have kept the information on this page in case you have existing cover.

Our table runs through the general offerings of involuntary unemployment for the brands that have offered it. Although some of these brands no longer offer this cover, we have left them displayed in case you have existing cover with them.

ProviderRedundancy cover conditions and featuresIs this option currently available to new policies?
AAMI income protection insurance

AAMI Income Protection

  • Up to $4,000 per month, for a maximum of 3 months
  • Optional add on
  • Up to 75% of income
  • Minimum of 20 hours a week eligibility criteria
No longer offered.
Suncorp Income Protection insurance

Suncorp Income Protection

  • Up to $4,000 per month, for a maximum of 3 months
  • Optional
  • Up to 75% of income
  • Minimum of 20 hours a week eligibility criteria
Not offered.

* Information correct as of October 2020. Please keep in mind insurers are rapidly changing their offerings and some information may have changed.

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Does income protection cover loss of job

Not necessarily. Many Australians mistakenly believe that their income policy will cover them in the instance that they lose their job.

Unless you have selected an additional extra that is offered by the insurer, usually called involuntary unemployment cover, or redundancy insurance, you will not be covered if you lose your job.

Mortgage protection insurance and loss of job

Mortgage protection insurance can sometimes protect you when you lose your job, as it’s designed to kick in to cover you against mishaps that may affect your ability to make loan repayments.

Mortgage protection policies will generally include the following features:

  • The security and peace of mind that comes with knowing you’ll have help with your mortgage payments if the unexpected happens.
  • A monthly payment to help cover your mortgage costs for a defined period of time.
  • A monthly involuntary unemployment benefit when you become unemployed through no choice or fault of your own and due to factors outside your control.
  • A lump sum payout to your family if you die, and a monthly benefit for a set period if you become disabled and are unable to work.
  • Three factors generally influence the cost of your premiums: your likelihood of becoming unemployed (the nature of your industry and possibly your job history could be taken into account), the state of the economy and the cost of your mortgage payments.

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