Compare Income Protection Insurance
Research and purchase with confidence
We do not compare all brands in the market, or all products offered by all brands. At times certain brands or products may not be available or offered to you. Learn more.
Top 5 things to know about income protection insurance
It pays to compare income protection
Compare quotes in minutes and start saving today.
Simple to use
Get started by answering a few quick questions to help us understand your income protection needs.
Compare & save
Save time and money by easily comparing income protection options from a range of providers side-by-side.
Switching is easy
Follow a few easy steps online to switch to a new income protection deal that suits you and your budget.
Why compare with us?
Our smart comparison technology is trusted, free, safe and secure.
We believe the best decisions start with a comparison.
We’re proud to have helped millions of Aussies look for a better deal.
4.3 / 5
Based on 2,774 reviews
23 million comparisons and counting
4.5 / 5
Based on 1,849 reviews
Ratings as of 09/12/2024.
A guide to income protection insurance
Updated February 19, 2024
David Koch: What if you can’t work due to an illness or injury?
David Koch takes you through the benefits of income protection and gives you some tips to help you choose a policy.
David Koch
Economic Director
Video Transcript
What would you do if you couldn’t work due to injury or sickness? Bills, groceries, the mortgage – where would you find the money for any of them? Things could get stressful really fast. Income protection insurance can act as a financial safety net.
It provides a regular benefit – reflecting a percentage of your income – if you are unable to work for an extended period of time and you’ve served out your waiting period. These payments can help to keep your bills paid while you recover. Some of us might have a small level of income protection cover via our super fund, but when so many policies take a one-size-fits-all approach – you might find they’re not the right fit for your needs. Some funds do not provide income protection at all so check with your fund if you’re not sure.
It’s absolutely crucial to read the fine print to understand what type of cover is right for you. That’s where Compare the Market comes in, to help you compare some of Australia’s largest insurance brands side by side, in a matter of minutes. Whether you’re a high-income earner or a part-time worker, we’ll show you a range of options to help you look for one that suits your needs and budget. Before you jump in, our experts have these tips to support your decision-making.
First, understand what you need cover for and how much cover you need. Everyone’s needs are different so spend some time learning what income protection can do for you, and what cover options might be suitable. And make sure you check the waiting period. Different policies may come with different waiting times for claiming a benefit.
Common options include 30, 60 and 90 days, but make sure you find a policy with a waiting period that works for you. The same goes for the benefit period; some policies might pay a benefit until typical retirement ages , while others might only pay a benefit for two years. Depending on your life stage, that’s an important point of difference. Having your options laid out side by side lets you identify these differences quickly and easily, and that’s why comparison is key.
So get to it! You can compare income protection insurance policies today, with Compare the Market.
Expert tips for choosing the right income protection insurance for you
Our income protection expert, Steven Spicer, has some helpful tips on how to help you find the right income protection policy for you.
Steven Spicer
Executive General Manager – Health, Life & Energy
Check your waiting period
When searching for an income protection policy, always check the waiting periods that may apply should you make a claim. While choosing a longer waiting period can make your policy cheaper overall, you may want to consider this option if you think you have enough savings or sick leave to cover you if you’re unable to work.
Know your benefit period
Check the benefit period carefully when comparing income protection policies, as this will determine how long your monthly payments could be paid if you’re unable to work due to sickness or injury.
Consider cover outside super
While it’s possible to get income protection with your superannuation fund, it’s always a good idea to weigh up your options to ensure you’re getting the best product available. For certain incomes and insurance needs, protection within a superannuation account will be most beneficial, while a separate policy will be better for others.
Find out more about income protection
Income protection basics
What is income protection insurance?
Income protection is a product that pays you a regular cash amount if you’re unable to work as the result of an accident or sudden illness.
This is an important product to consider if you’re unsure how you or your loved ones would manage financially if you couldn’t earn an income due to an unexpected injury or illness. For many people, debt repayments and living expenses would make it extremely difficult to stay afloat financially if something happened to them. With income protection, you can rest easy with the peace of mind that you could still receive up to 70% of your pre-tax income through monthly payments if injury or illness keeps you from working.
How does income protection insurance work?
With income protection, you’ll be insured for up to 70% of your income through monthly benefits if you’re unable to work because of an injury, illness or certain medical conditions.
These payments could help you maintain your quality of life or manage debt repayments while you’re unemployed.
The period of time that income protection covers you for is called your benefit period and can be either a set time (e.g. 12 months) or until you reach a certain age (e.g. until you turn 65).
Income protection is risk-rated, meaning that your income protection premiums will depend on several factors such as your age, gender, smoker status and occupation. You may also have some exclusions or loadings for specific medical conditions. For a complete list of policy terms and conditions, refer to the relevant Product Disclosure Statement (PDS) and the insurer’s Target Market Determination (TMD) to check if the policy suits your needs.
Why should I compare income protection insurance?
Not every income protection policy is the same; for example, they might have different insurance premiums, exclusions and benefit periods. It’s also important to note that not every provider pays the same percentage of your income when you make an income protection claim, so it’s worth shopping around for the best deal for you.
Comparing income protection through our comparison tool comes at no cost to you and is a great way to see policies from some of Australia’s biggest providers side-by-side to decide on the right level of cover for you.
Difference between life insurance and income protection
Unlike income protection (which insures your income if you can’t work temporarily), term life insurance policies insure your life by paying out a lump sum if you pass away or are diagnosed with a terminal illness.
Other types of life insurance, such as trauma insurance and total permanent disability (TPD) insurance, pay you out if you’re diagnosed with a specific traumatic illness or injury, or become totally and permanently disabled. These types of cover can pay out a lump sum separate from your income and employment.
Income protection benefits
What benefits should I look for in an income protection policy?
There are several benefits that can come built into your income protection policy. You’ll want to keep these in mind when comparing income protection policies. Here are a few common benefits you might want to consider when taking out income protection insurance:
- Partial disability benefits. Allows you to make an insurance claim for a reduced percentage of your cover amount if you’re partially disabled and can still work at a lower capacity.
- Recurrent claim benefits. Allows you to recommence your benefit payments without serving your waiting period again if you claim for the same or a related condition within a certain period of time (e.g. 12 months).
- Death benefits. Pays out a lump sum to your chosen beneficiary if you pass away.
The benefits available to you will depend on your personal circumstances and will differ between providers.
If you buy income protection as a standalone policy, your premiums could be tax deductible (unless your policy is held through your superannuation fund). Find out more in this guide, and consider speaking to a financial advisor for more information.
Meet our income protection expert, Steven Spicer
As the Executive General Manager of Health, Life and Energy and our expert in income protection insurance, Steven Spicer knows just how valuable it can be to have a policy that could support you and your family through a difficult time. Steven is passionate about making income protection more accessible to everyday Australians by helping them understand and compare their options.
Steven has 20 years of experience as a people-first business leader, with a focus on creating services that put customers first.
