2026 Direct Income Protection Award

Canstar releases its
2026 Direct Income Protection Award.

Released: 18 February, 2026

Congratulations to the Award winners

NobleOak

Outstanding Value Award – Direct Income Protection

NobleOak has secured our 2026 Outstanding Value – Direct Income Protection Award for the 11th consecutive year. This consistent performance highlights a commitment to providing high-quality cover at competitive prices. Policies feature significant flexibility, allowing for tailored waiting periods and benefit options that extend up to age 65 (this is a notable difference to most other providers which cover income for limited periods), ensuring Australians have the choice to tailor protection to their personal circumstances.

Budget Direct

Outstanding Value Award – Direct Income Protection

Budget Direct, underwritten by NobleOak, has been recognised in our Outstanding Value Award – Direct Income Protection for the third year in a row for delivering outstanding value to its customers. Its policy provides direct income protection at a competitive price point with flexibility and tailored waiting periods for customers.

About this year’s awards

What makes a strong direct income protection policy can vary significantly depending on your occupation, income and the level of cover you are looking for. In our assessment, NobleOak and Budget Direct delivered strong value across multiple scenarios—not just in a single example—which is what set them apart.

Why direct income protection matters

Income protection insurance is designed to replace a portion of your income if you’re unable to work due to illness or injury. For Australians who rely on their earnings to meet everyday expenses, service a mortgage or support dependents, even a temporary interruption to income will likely create financial strain.

This can be particularly relevant for people who:

• Are self-employed or run a small business and don’t have access to paid leave
• Have dependants who rely on their income
• Carry ongoing financial commitments, such as a mortgage or other debt
• Would struggle to cover essential expenses if their income stopped for an extended period

Direct income protection is a policy purchased and managed directly with an insurer. This means you, as the policyholder, can choose the level of cover, waiting periods, benefit periods, and any optional features, allowing the policy to be tailored to your occupation, income, and personal circumstances.

“It’s easy to focus only on premiums,” says Canstar Research Analyst Luke Clyburn. “But waiting periods, benefit periods, and cover definitions can have a bigger impact when the unexpected happens and you need protection. Our research highlights providers that consistently delivered strong value across multiple scenarios—giving Australians a clearer picture of value when choosing a policy.”

How we assessed value

To determine the 2026 Outstanding Value – Direct Income Protection Award winners, our Canstar Research team analysed a range of direct income protection providers to uncover  those delivering a strong balance of cost and features.

What steps we took:

• Collected quotes across a range of ages, occupations, and income brackets
• Analysed policy options, including waiting periods (time before payments start), benefit periods (how long payments continue) premium types (variable age-stepped vs variable) and occupational definitions.
• Assessed policy flexibility and ability to tailor cover
• Compared premiums relative to features, not just price

Rather than highlighting the lowest premium in a single scenario, we examined which providers delivered consistent outcomes across combinations of occupation, income and cover.

Who we looked at

We reviewed a range of direct income protection providers who were eligible to be assessed, including:

• AAMI, ahm, Budget Direct, Guardian Insurance, InsuranceLine, Medibank, NobleOak, RAC, Real Insurance, Suncorp, TAL, Teachers Mutual, Zurich

With each provider applying its own underwriting criteria and risk classifications, pricing can vary significantly for the same level of cover across insurers. This is why side-by-side comparison across multiple scenarios can be helpful.

What to keep in mind when comparing your options

Income protection isn’t one-size-fits-all. When comparing policies, start by checking your existing cover. Some Australians may already hold income protection through superannuation. These policies are typically part of a group arrangement and may have limited flexibility. 

Direct income protection, held in your own name, allows you to tailor cover to your occupation, income, and lifestyle. You can choose:

• How much of your income is protected
• Waiting periods before payments start
• How long benefits are paid
• Features that suit your occupation and lifestyle

Consider your personal circumstances:

• Your occupation and risk profile
• Your income and essential expenses
• Your savings buffer
• How long you could realistically manage without earning any income
• The length of time you would want benefits paid if unable to return to work

Preparing a budget can help you work out how much income you’d need to replace. It’s also important to consider whether you already hold other forms of cover, such as total and permanent disability or trauma insurance.

When comparing policies, look beyond price alone and consider how the policy will perform when you need to make a claim.

Does Canstar rate other products?

About Canstar

Canstar also has insights and information about financial products and services generally. You can find out about topics such as: interest rates, credit score, business products and tax. You may also be interested in discovering more about calculators and resources, such as our rate tracker and free credit score tool, to help you with your financial decision-making.

About: Luke Clyburn, Research Analyst

Bachelor of Commerce (Finance), Griffith University

With a background in Telecommunications and Financial Planning, Luke brings a breadth of experience to mainly insurance-based Awards and Star Ratings. 

Returning to university to complete his Bachelor during Covid, Luke is passionate about delivering actionable data to assist Australians in making informed financial decisions. Luke is delighted to discuss the minutia of each product he researches, determined to fully comprehend the details. He revels in improving efficiency, adopting new technologies and methods to better achieve high quality results.

Luke values expertise in all forms and is excited to have found a group of like minded individuals in the Canstar Research Department.

You can follow Luke on LinkedIn, and Canstar on X and Facebook.