Compare Income Protection

Income Protection which you can obtain directly from the provider.

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Other Types of Insurance

Advised Income Protection

Income Protection (through adviser)

Life Insurance

Life Insurance (term insurance)

Trauma Insurance

Trauma Insurance (Major Illness)

TPD Insurance

TPD Insurance (Disability)

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What is income protection?

Income protection insurance offers to pay you a monthly benefit if you are unable to work for a certain period of time because of illness or injury. This insures you for a set level of your income (commonly 75% of your gross salary) and will pay you at that level until you are able to return to work or for the agreed period of time – whichever is sooner

Income protection insurance is not to be confused with redundancy insurance, which offers limited financial protection in the case of involuntary redundancy.

When choosing an income protection policy either direct from an insurer or through your financial adviser, you will need to decide a few important things:

Income protection waiting periods

Typically, income protection policies will have a waiting period – a period of time that you must be off work before the insurance cover kicks in.

This waiting period can range from 2 weeks to 2 years, so the key question to ask yourself is, how long could you afford to be without an income? For those with plenty of savings tucked away, or long service leave waiting to be taken, perhaps a 3-month waiting period could suit. For those with a large mortgage and no cash savings buffer, choosing the shortest waiting period possible will be necessary.

The length of the waiting period will affect the cost of the insurance. In general, the shorter the waiting period, the more expensive the insurance premiums will be.

Income protection payment periods

Income protection policies will only continue to cover your lost salary for a certain length of time and it is up to you to decide what length of time this should be.

Typically, you may choose a specific length of time, such as 2 years or 5 years, or nominate payments to continue until a certain age (such as 65 years old). The length of benefit period will also affect the cost of your insurance: the longer the benefit period, the more expensive the insurance premiums will be.

Choosing an income protection provider

Some companies will insure 75% of your total package including your usual superannuation contributions. Others will cover 75% of your salary and pay 100% of your usual super contributions into your super fund.

Your financial adviser will be able to help you decide on the most suitable policies and providers for you. In the meantime, you can get some background knowledge on how providers compare on our website:

How much does income protection insurance cost through an adviser?

Obviously the cost depends on whether you choose to get income protection insurance as part of a packaged life insurance bundle through a financial adviser, or direct from a provider.

The following premiums for income protection through a financial adviser are current as at our 2016 Advised Life Insurance star ratings. Monthly premiums have been rounded to the nearest dollar.

Income Protection (Male – Stepped)

Monthly Premiums ($/month)

Age Occupation Annual Income Min Max Average
Twenties Professional $80,000 $44 $70 $59
White Collar $50,000 $40 $72 $51
Light Manual $55,000 $66 $114 $83
Blue Collar $80,000 $131 $295 $190
Thirties Professional $100,000 $66 $106 $89
White Collar $70,000 $67 $104 $82
Light Manual $80,000 $112 $182 $138
Blue Collar $100,000 $210 $432 $276
Forties Professional $150,000 $175 $282 $228
White Collar $105,000 $168 $252 $205
Light Manual $80,000 $200 $324 $243
Blue Collar $100,000 $350 $601 $442
Fifties Professional $150,000 $365 $609 $484
White Collar $105,000 $354 $542 $435
Light Manual $80,000 $427 $700 $519
Blue Collar $100,000 $714 $1,043 $871
Income Protection (Female – Stepped)

Monthly Premiums ($/month)

Occupation Annual Income Min Max Average
Twenties Professional $80,000 $63 $110 $87
White Collar $50,000 $54 $111 $76
Light Manual $55,000 $96 $160 $122
Blue Collar $80,000 $170 $378 $243
Thirties Professional $100,000 $97 $179 $136
White Collar $70,000 $101 $162 $125
Light Manual $80,000 $164 $270 $207
Blue Collar $100,000 $276 $569 $369
Forties Professional $150,000 $268 $493 $357
White Collar $105,000 $268 $395 $321
Light Manual $80,000 $302 $527 $372
Blue Collar $100,000 $469 $821 $625
Fifties Professional $150,000 $531 $952 $744
White Collar $105,000 $532 $855 $668
Light Manual $80,000 $609 $1,046 $775
Blue Collar $100,000 $984 $1,533 $1,252
Source: CANSTAR. Average premiums current as at 17 August 2016. Average premiums have been rounded to the nearest dollar.

It’s important to note that the premiums on income protection insurance policies that you hold personally (as opposed to policies held within your superannuation fund) are a tax-deductible expense for many people. While each person should check the ATO website when filling in their tax return, this tax deduction could be worth claiming. Sadly, the same is generally not true of your other life insurance or health insurance policies.

To find out more about getting income protection insurance from a financial adviser and to compare your options, read our annual Advised Life Insurance Star Ratings report.