Income Protection Insurance Comparison
Help maintain an income when you can’t work due to illness or injury with income protection insurance, so you can focus on your recovery. Compare income protection insurance in Australia with Lifebroker to find the right policy for you and your family’s needs.
Benefits of Income Protection Insurance
- Receive recurring monthly payments
- Maintain your lifestyle even when you can’t work
- Cover expenses and debt repayments
- Claim when you’re unable to work due to sickness or injury
What is Income Protection?
Income protection is a type of insurance that provides a regular income if you're unable to work due to illness or injury. In Australia, income protection insurance typically covers up to 70% of your gross (pre-tax) income, helping you maintain financial stability during recovery periods. This form of insurance is especially valuable for those who rely on their income to meet daily expenses and financial obligations.
How Income Protection in Australia works
When you take out an income protection policy, if you become unable to work due to a illness or injury, the insurer pays you a monthly benefit after a specified waiting period.
The benefit period, which is the length of time you receive payments, can vary, commonly ranging from two years up to age 65, depending on your policy. This ensures you can continue to cover essential expenses like mortgage repayments, utility bills and daily living costs while you focus on recovery.
Do you need to consider Income Protection Insurance?
Wondering if income protection insurance is the right move for you and your family? Income protection insurance is suitable for a wide range of individuals, including:
- Self-employed professionals who don't have access to sick leave
- Employees with limited sick leave entitlements
- Primary income earners in a household
- Individuals with ongoing financial commitments such as mortgages, loans or dependents
Features of Income Protection Insurance
Wondering what kind of a difference the right income protection insurance policy could make to your life? With the right cover in place for life’s most unforeseen moments, Income Protection Insurance can provide you with the following features:
- Claim when you’re unable to work due to sickness or injury, giving you peace of mind when you need it most. Receive recurring monthly payments to supplement your income and support your family.
- Maintain your lifestyle even when you can’t work to ensure there is no disruption to you and your family’s daily routine.
- Cover expenses and debt repayments to avoid late fees and damage to your credit score.
- Premiums are generally tax-deductible when the policy is held outside of superannuation.
- Choose waiting and benefit periods that align with your financial situation.
- Ensures financial stability during periods of ill health or injury.
Ready to protect your income? Check out Lifebroker’s income protection comparison tool and discover some of the best income protection insurance policies on the market.
What to Consider when Comparing Income Protection Insurance
When conducting an income protection comparison, consider the following factors:
- Waiting period — This refers to the time between when you become unable to work due to illness or injury and when benefits begin to accrue. .
- Benefit period — The maximum duration for which you'll receive payments. It’s important to opt for the policy that ensures you’ll be covered for a sufficient length of time as you get back on your feet.
- Premium structure — Policies can have variable age-stepped or variable premiums, affecting cost over time. Ensure you choose the right policy and premium for your budget.
- Policy inclusions and exclusions — Understand what's covered and any limitations. This can help you avoid delays or even rejected claims in the event that you need to access your policy.
- Additional features — Some policies offer features like rehabilitation support or inflation protection. While these aren’t mandatory, they’re still worth considering so that you can recover comfortably.
What is the Difference Between Life Insurance and Income Protection?
While both are forms of personal insurance, they serve different purposes:
- Life insurance — Provides a lump-sum payment to your beneficiaries in the event of your death or terminal illness diagnosis.
- Income protection — Provides regular payments to replace up to 70% of your gross (pre-tax) income if you're unable to work due to a prolonged illness or injury.
Compare Income Protection Insurance Quotes
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Income protection comparison simplified — meet our team of insurance experts
Our team of experts brings decades of experience in the insurance industry, helping thousands of Australians find income protection cover that suits their needs. We work with some of Australia’s leading income protection insurers and provide expert, obligation-free support to make comparing income protection simple.
At Lifebroker, we are passionate about helping you make informed decisions . With unmatched industry knowledge and a customer-first approach, our experts are here to guide you through every step of the process with compassion, experience and professionalism.
Income Protection FAQs
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What is income protection?
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If you are unable to work for an extended period of time due to illness or injury, your income protection policy can provide a regular monthly benefit of up to 70% of your income for the length of time determined when you took out your policy.
Income protection can be particularly important for people who are the sole income earners, regardless of whether they have any dependents. However, if you do have people relying on your income, it reduces the financial stress that arises for them and you if you become ill or injured and unable to work.
With rising living expenses and wallets getting tighter, supplementing your income with savings may not be enough to get you and your family by. Income protection eliminates this worry. Having this financial protection in place can ensure you and your loved ones can maintain the lifestyle you have worked hard to achieve, even if you are unable to work.
Use our income protection comparison tool to help you find the right income protection product for your needs, or give our Lifebroker insurance consultants a call on 13 54 33.
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Why do I need income protection?
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If you are unable to work for an extended period of time due to illness or injury, income protection can provide you with a financial lifeline during a difficult time. It gives you the peace of mind that you will have help keeping up with repayments that you have, as well as cover everyday expenses.
Most income protection policies provide up to 70% of your income if you need to claim, which helps ensure that you and your loved ones' lifestyle is maintained and protected if you become ill or injured.
Unfortunately, life doesn’t slow down or stop when a person suffers from a serious injury or illness, with living expenses and other costs getting in the way. Having an income protection policy in place allows you to focus on your recovery and recuperation and not on your bills.
Compare income protection policies now using our insurance comparison tool, or call one of our specialist insurance consultants on 13 54 33 — we’re here to help you find the right income protection policy for you and your family.
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How much cover is available?
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Most income protection insurers will cover you for up to 70% of your income either until a time at which you are able to work again or until the end of your policy’s benefit period, whichever is first.
When you take out income protection you will have a variety of options, including how long you will receive the benefit for and how long the waiting period is before your policy will start paying monthly benefits.
It is important to consider how much cover you need and how long you can go without cover (the waiting period). How many sick days do you have? Do you have savings to cover your income for 1, 3 or 6 months? Choose wisely, as it could mean the difference between having sufficient income or having to return to work before you’re ready.
It’s also important to note that all new income protection policies are indemnity value policies. This means that you will have to confirm your income when making a claim. If your income has decreased since you applied for cover, your benefit will be paid at the reduced amount, to align with your current income. Agreed Value income protection policies are no longer available for new customers.
The right amount of cover for you will depend on your current income as well as your financial requirements. If you still have questions about how much income protection cover you might need, we’re ready to take your call on 13 54 33.
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How can I decide which cover type or product is right for me?
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With so many income protection policies to choose from, it can be tricky to find the right product for your circumstances. To keep things simple and straightforward, we have developed an easy-to-use tool to help you compare income protection products from leading life insurers in Australia. Use our income protection comparison tool to compare the benefits, features and price to make a confident decision for your personal circumstances.
The right product for you will be based on a variety of factors, and it should be a personal choice. If you need any help with specific features of a policy, just call one of our insurance consultants on 13 54 33, and they can talk you through the options available with Lifebroker.
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Tips for Comparing Income Protection Insurance in Australia
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Tips for Comparing Income Protection Insurance in Australia
Choosing the right income protection insurance is an important step in securing the financial future of yourself and your family. To ensure you select the right policy, check out our top income protection comparison tips below:
- Understand the benefit period — This is how long you'll receive payments if you're unable to work due to sickness or injury. Some policies offer short-term benefit periods (for example, two or five years), while others pay up to a certain age. Consider your financial obligations and how long you may need support.
- Check the waiting period — This is the time between when you're unable to work due to sickness or injury and when benefits start. Shorter waiting periods mean faster payouts, but premiums are generally higher. Benefits are typically paid a month in arrears, so you should consider the impact of this when choosing a waiting period.
- Compare cover types — Income Protection policies currently available for sale are offered on an indemnity basis. This means that your benefit is calculated based on your income at time of claim.
- Look for built-in and optional features — Some policies include rehabilitation benefits, partial disability cover or inflation protection. Take the time to assess which extras add real value based on your health and lifestyle.
- Compare premiums and providers — Whilst price is important you can consider other factors like your customers service and claims experience too.
Lifebroker only provides general advice, which means we haven’t considered your individual financial situation, objectives or needs. Before acting on it, please consider the appropriateness of the advice, having regard to these factors. Before making a decision to purchase or continue to hold a life insurance product, you should read the relevant Product Disclosure Statement (PDS). The PDS includes the details of the product issuer. The Target Market Determination for each product is also available.
- What is underwriting in insurance?
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There are different types of underwriting. The two that mainly concern life insurance are medical underwriting and financial underwriting. When applying for life insurance products, you will need to complete an application form. Most comprehensive products will require you to complete a series of questions regarding your health and financial history. Insurance companies will also require information about your work and any sports and pastimes that you might participate in.
When you apply for an income protection insurance policy, your chosen insurer may ask you to undergo medical or health checks to assess your risk profile and calculate your premium. This could include tests, such as a blood testor a standard physical assessment.
- Can Part Time Workers Get Income Protection Insurance?
- To be eligible for Income Protection you must meet the minimum working requirements for the policy you chose. There are a few insurance companies who offer income protection insurance to clients who work part time, which is helpful to know when comparing cover options. A minimum...
Why compare Income Protection policies with Lifebroker
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About Lifebroker — Experts in Income Protection Insurance in Australia
At Lifebroker, we understand that your ability to earn an income is essential to your financial well-being. That’s why we’re committed to helping Australians find an income protection insurance for their needs, quickly, easily and with expert guidance.
As one of Australia’s top life insurance and income protection brokers, we work with some of the country’s most trusted insurers to bring you a simple and transparent income protection comparison. Whether you’re self-employed, supporting a family or simply want to protect your lifestyle, we’re here to help you compare policies side by side and choose the right income protection insurance for you.
Our comparison tools are free to use. Lifebroker makes it easy to find and apply for income protection insurance in Australia.
With expert support, no pressure and no hidden fees, Lifebroker is your trusted partner in securing your income. Protect what matters — compare income protection with us today.
Compare Income Protection Insurance Quotes
Your journey to securing income protection starts with a single quote.
When you compare income protection insurance with Lifebroker, you can rest assured that you’re comparing income protection from some of the largest and most established insurance companies in Australia.
Our platform allows you to assess various policies side by side, making it easier to compare the features and benefits from some of Australia’s largest insurers.