Compare Income Insurance

What is income protection insurance?

Income protection pays you a proportion of your pay, should you be unable to work due to any sickness or injury. Unlike worker’s compensation which will pay you out if you are injured at work, income protection will pay you out if you are injured at any time, or if you are unable to work for other reasons.

It generally pays up to 75% of your income, though if you wish to reduce the price of your premium, you can insure yourself for a lesser amount. The amount of time you receive the payments depends on the terms in your contract. For example you can choose between, two years, five years or to age 60 or 65.

Who should take out income protection?

Income protection insurance should be considered by anyone who is currently employed. People tend to start considering life insurance and total & permanent disablement insurance when they gain dependants, such as a partner or children. Income protection, on the other hand, is a tool for anyone once they reach working age.

What is it used for?

Unlike health insurance which covers your medical costs, income protection can be used for anything you need. It can cover your medical bills, living costs and general day to day living.

How much do I have to pay?

Premiums are based on a range of different factors including:

• Age
• Smoker status
• Gender
• Occupation
• Health

The typical rule to follow is that a lot of people pay around one week’s salary per year. All premiums are tax deductible in Australia.

How do I compare?

It is best to use an insurance broker. A broker like Lifebroker does all the comparisons for you. We use independent research to compare all income protection options on the market and only offer you comprehensive policies. We can answer all your questions - what’s covered, what’s not covered, how much will your policy cost now compared to later etc. It saves you talking to companies individually and asking the same questions over and over.

> Get an Income Protection Quote