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How much does income protection insurance cost?

The average income protection costs around $64 a month if you earn $5,000 – but other circumstances can impact the price you pay.

What you need to know

  • Income protection costs $53-$168.61 depending on how much you earn.
  • Our estimates are only a gauge of costs – your age, gender and occupation all impact how much you will pay.
  • There are several other factors that can impact how much you pay.

What is the average cost of income protection?

The prices and benefit payouts below are based on a 35-year-old, non-smoking accountant with no pre-existing conditions listed. Quotes checked across 4 brands in September 2022.

Monthly income (Pre tax)Average cost per month (male)Average cost per month (female)Monthly Payout Range
$14,000$199.89$231.92$10,000 - $10,500

Compare options and get personalised income protection costs

1 - 5 of 9
Name Product Maximum Monthly Benefit Maximum % of Income Covered Maximum Benefit Period Minimum Entry Age Sum Insured
TAL Accelerated Protection Income Protection
Up to 70%
Up to
Age 65
$1,305 million
Get up to 70% of your income covered with flexible short and long term benefit periods.
AAMI Income Protection
Up to 75%
Up to
5 years
$222 million
Take out a new AAMI Income Protection policy and get $100 eGift card after your first 4 months of cover. T&Cs apply. Ends June 30, 2024.
ahm Income Protection
Up to 70%
Up to
5 years
Data not available
Get 10% off your first year of ahm Income Protection when you apply by 1 July 2024. T&Cs apply.
NobleOak Income Protection
Up to 70%
Up to
Age 65
$65 million
With NobleOak, you can lock in a policy with a benefit period covering you up to the age of 65. Cover limits may go as high as $30,000.
Medibank Income Protection
Up to 70%
Up to
5 years
Data not available
Save 10% on your first year of Medibank Life Insurance when you apply by 1 July 2024. T&Cs apply.

Finder survey: Have life insurance premiums for people gone up in the last 12 months?

I don't have life insurance55.01%44.71%
I don't know14.24%14.66%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023

Income protection calculator: How much cover you could get

Gross annual income
Percentage covered

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

What factors impact income protection costs?

  • Age: Premiums will increase with age because you are more likely to be susceptible to medical conditions.
  • Your gender: Women are generally considered to be more susceptible to pre-existing medical conditions so pay more.
  • Smoking status: You may pay as much as 50% more for income protection insurance if you are a smoker.
  • Pre-existing medical conditions: There are conditions that will be excluded automatically and others that you may receive cover for if more information is provided.
  • Your occupation and how dangerous it is: This will also depend on your actual duties – for example, blue collar workers typically pay more.
  • Lifestyle factors: Potentially dangerous hobbies such as dirt bike riding may result in an increase of the premium.
  • The waiting period you choose: A shorter waiting period (so you can get paid sooner) will result in a higher premium.
  • Benefit period you choose. The longer your benefit period (the time you're paid for) the higher the premium.

How occupation and income can influence income protection costs

Both occupation AND income can affect the cost of cover. For example, a retail supervisor and a registered nurse who earn $4,000 a month will pay a different premium on income protection.

Likewise, a medical specialist may have a higher income to insure than a general doctor. This, along with the occupation category can mean a difference in premiums.

*Average monthly premium is based on the average premium of all policies available in finder's quote engine for both males and females. Quotes are based on non-smoking 35 year old in NSW. Income levels are for illustrative purposes and not as a definitive guide.

How stepped and level premiums affect cost

When you take out a life insurance or income protection policy, you have the option to structure your premium repayments as either stepped or level.


Stepped premiums

Stepped premiums will increase over time in line with your age. They are a more affordable option at the start of your policy but increase steadily overtime...particularly once you have reached 40 years of age.


Level premiums

Level premiums will start out higher than stepped but will remain the same for the life of the policy. Generally level premiums will end up being more affordable in the long run.

The graph below gives you an idea of how stepped and level premiums differ based on annual premuiums (on the left) and years (at the bottom). There is also a line for hybrid premiums – some insurers also offer this.

*Figures above are a rough estimate for illustrative purposes and should not be used as an indicator for cover.

How can I get cheap income protection that still provides enough cover?

Here are a few ways you can save money and reduce the cost of your income protection.

  • You can choose a longer waiting period such as 60 or 90 days before your benefit will start to be paid
  • You can opt for a shorter benefit period (the length of time your claim will be paid out for)
  • You can choose to be paid only up until age 60 instead of 65
  • Pre-pay your benefits up to 12 months to receive tax deduction for the current financial year, while receiving the benefit for the next financial year

Why you can trust Finder's income protection experts


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Our team of income protection experts have researched and rated dozens of policies as part of our Finder Awards and published 80+ guides.

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Unlike other comparison sites, we're not owned by an insurer. Our opinions are our own and all guides must meet our editorial standards.

We're here to help

Since 2016, we've helped thousands of Australians find income protection by explaining your cover options, simply and clearly.

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