Get App
Canstar reveals the winner of its Direct Income Protection Award for 2022
17 Mar 2022
If you’re looking to take out income protection insurance, you’ll be interested to know which provider offers you award-winning cover in 2022, according to Canstar’s criteria. Our data reveals an award-winning policy costs 55% less than the other products assessed, on average.
Income protection insurance is a form of protection that may offer you a level of cover if you can’t work due to sickness or injury for an extended period of time. It’s usually only available after you’ve served a waiting period.
You may already have some income protection through your super fund or some other source. Direct income protection is an income protection insurance policy that you buy directly from the provider and may be able to offer you a higher and more tailored level of cover compared to cover in your super, depending on the policy.
Moneysmart says each income protection policy will have its own definition of the level of partial or total disability that must be met before a claim is made. You should check a provider’s website and read any relevant Product Disclosure Statement (PDS) for those definitions and any exclusions.
If you’re considering a policy to provide a level of cover for your income, or are reviewing your current cover, Canstar’s Star Ratings provide a shortlist that enables you to narrow your search to products that have been assessed and rated.
2022 Direct Income Protection Award winner – NobleOak
NobleOak has taken out the Direct Income Protection Award for the seventh year in a row, having first won in 2016. Its Disability Income Insurance policy also received a 5-Star Rating in each of the consumer profiles assessed by Canstar Research.
Canstar’s Ratings Manager, Joshua Sale, said NobleOak has maintained its dominant market position based on costs and features, retaining the Outstanding Value Award in 2022.
In particular, Canstar Research noted NobleOak led on price with its premiums cheaper on average than the market average across the range of consumer profiles considered.
For example, if we look at truck drivers who typically pay one of the highest income protection premiums, a female in her early 30s could pay nearly 67% less in premiums than the market average for a policy with a $3,125 monthly benefit. A male of the same age could pay over 63% less.
According to NobleOak, its income protection insurance offers:
- a monthly benefit of 70% of your regular, pre-tax income to a maximum of $30,000 a month
- a two-year or five-year benefit period, or a benefit period until you are 65
- a cheaper premium if you take out cover with a waiting period of 90 days instead of 30 days.
Direct income protection premiums: Award-winning cover versus the average
When it comes to the cost of premiums, NobleOak’s policies were considerably cheaper than the average of the other policies on Canstar’s database in each of the consumer profiles assessed. The tables below show examples of this, based on a male and a female non-smoker in their 30s and a policy offering a monthly benefit of $3,125.
Monthly premium for a female policyholder (non-smoker) in her 30s
← Scroll sideways →
| Occupation category |
NobleOak average |
Rest of database average |
|---|---|---|
| White collar (e.g. accountant, receptionist etc.) |
$11.38 | $40.45 |
| Light blue collar (e.g. chef, sales assistant etc.) |
$16.89 | $51.87 |
| Medium blue collar (e.g. electrician, registered nurse, etc.) |
$19.30 | $55.51 |
| Heavy blue collar (e.g. car mechanic, commercial cleaner etc.) |
$24.13 | $76.89 |
Monthly premium for a male policyholder (non-smoker) in his 30s
← Scroll sideways →
| Occupation category |
NobleOak average |
Rest of database average |
|---|---|---|
| White collar (e.g. accountant, receptionist etc.) |
$10.27 | $34.96 |
| Light blue collar (e.g. chef, sales assistant etc.) |
$15.23 | $43.86 |
| Medium blue collar (e.g. registered nurse, electrician etc.) |
$17.41 | $46.78 |
| Heavy blue collar (e.g. car mechanic, commercial cleaner etc.) |
$21.76 | $62.89 |
Source: www.canstar.com.au. Based on quotes obtained for Canstar’s 2022 Direct Income Protection Insurance Star Ratings (March 2022) for a policy with a monthly benefit of $3,125. Premiums based on quotes for a 90-day waiting period and a sample of ages within the thirties age group: 32 and 37. Different (generally higher) premiums apply to smokers.
How does Canstar assess income protection policies and providers?
Canstar assessed each eligible policy across 80 different consumer profiles for a range of age groups and occupational categories (from professional and white collar through to heavy blue collar), as well as on gender and smoking status. A non-smoker is defined as someone who has not smoked or used an E-cigarette or any other similar product for at least the last 12 months.
In each profile, products have been given a Star Rating based on a combination of price (monthly premiums) based on one high and one low sum insured amount; and features, including those related to the application process and initial policy options, payment options, available cover, the claims process, customer support and the policy termination process.
For 2022, the methodology has seen some significant changes year-on-year, with the price score updated to now be based on quotes for policies with a 90-day waiting period, which allowed some providers to be included in Star Rating profiles where they’d previously been excluded.
The feature score has also undergone some review to bring it inline with market shifts in recent years.
The Outstanding Value Direct Income Protection Award is the provider deemed to offer the strongest overall value, based on the cumulative performance of their cover across all 80 profiles.
You can take a look at the Direct Income Protection Star Ratings results to view the full list of policies that won a 5-Star Rating this year.
For more information on how the Ratings and Award are determined, read the Direct Income Protection methodology.
Compare income protection policies
Date published: 17 March 2022.
Cover image source: Oak Nakrub/Shutterstock.com
This article was reviewed by our Deputy Editor Sean Callery and Sub Editor Tom Letts before it was updated, as part of our fact-checking process.
