Income Protection

A smart way to compare, buy and manage your income protection insurance.

Compare insurance from a range of leading insurers.

Lifebroker work with a range of leading insurers to make comparing income protection insurance easy for you. 

Get a quote

What Is Income Protection Insurance?

Income protection insurance is a type of cover that provides a regular monthly income if you can’t work due to illness or injury. In Australia, most policies typically replace up to 70% of your gross (pre-tax) income, giving you the financial security to pay for essentials while you recover.

This insurance is particularly important if you rely on your income to cover mortgages, bills, daily expenses, or family commitments. By protecting your income, you can focus on recovery instead of worrying about money.

Do I Need Income Protection Insurance?

Even a short-term illness or injury could disrupt your finances. Income protection insurance can help:

• Cover essential expenses like rent, mortgage, utilities, and groceries
• Maintain your lifestyle without cutting back on daily necessities
• Protect your family’s financial security
• Avoid debt or late payments during periods when you cannot work

By having income protection, you create a financial safety net that allows you to recover with peace of mind.

.

Who Can Benefit from Income Protection?

Income protection insurance may be suitable for a wide range of people, including:

• Self-employed professionals without access to paid sick leave
• Employees with limited sick leave entitlements
• Primary income earners in a household
• Individuals with ongoing financial commitments, such as mortgages, personal loans, or dependents

If you fit any of these categories, income protection may help to provide stability and reassurance during unexpected events.

Get a quote

How Does Income Protection Insurance Work?

Income protection insurance provides monthly payments if you can't work due to illness or injury. Here's how it works:

1. Choose your cover

Customise your policy to suit your needs:

• Waiting Period: Select 14, 30, 60, or 90 days—the time between stopping work and when payments begin. Longer waiting periods mean lower premiums.
• Benefit Period: Choose how long payments continue, from 2 years up to age 65 or 70. Longer periods offer more protection but cost more.
• Cover Amount: Most policies replace up to 70% of your gross income. Your insurer will verify your income during application.
• Premium Type: Choose stepped premiums (lower initially, increase with age) or level premiums (higher upfront, more stable long-term).

2. Make a claim

If you can't work due to illness or injury:

• Notify your insurer immediately
• Provide medical certificates from your doctor
• Complete the claim forms
• Your insurer assesses your claim against policy terms

3. Waiting period

No payments are made during your chosen waiting period (e.g., 30 or 60 days). Use sick leave, annual leave, or savings during this time.

4. Receive monthly payments

Once approved:

• Regular payments of up to 70% of your pre-tax income
• Payments deposited monthly, similar to a salary
• Use them for mortgage, bills, groceries, and living expenses
• Continue until you return to work or your benefit period ends

You'll need to:

• Provide ongoing medical certificates
• Update your insurer about changes to your condition
• Participate in reasonable rehabilitation if recommended

6. Return to work

• Full recovery: Payments stop when you resume normal duties
• Gradual return: Many policies offer partial payments if you return on reduced hours or capacity

Long-Term support when you need It

Depending on your benefit period, you could receive support for anywhere from 2 years to age 65 or beyond, providing genuine financial security for serious or long-term health issues.

Benefits of Income Protection Insurance

A well-chosen policy can help you:

• Replace lost income when you’re unable to work due to injury or illness
• Maintain your standard of living
• Cover essential expenses and debt repayments
• Select flexible waiting and benefit periods to suit your financial situation
• Potentially claim tax-deductible premiums if the policy is held outside superannuation
• Gain peace of mind knowing you’re financially protected

What to Consider When Comparing Policies

Before choosing a policy, pay attention to:

• Waiting period: The time before payments start after you’re unable to work
• Benefit period:  How long you’ll receive payments
• Premium structure:  Age-stepped vs. level premiums and long-term cost implications
• Policy inclusions and exclusions:  Ensure coverage meets your needs, and limitations are clear
• Optional features: Rehabilitation support, inflation protection, and other add-ons that enhance coverage

Important Information

Lifebroker Pty Ltd ABN 65 115 153 243, AFSL 400209 (Lifebroker) only provides general financial product 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 (TMD) for each product is also available. 

Lifebroker does not compare all life insurers or policies available in Australia. Find out more about the insurers and products compared here. 

Lifebroker is a related body corporate of National Financial Solutions Pty Ltd (NFS) ABN 92 083 177 011, AFSL number 284182. NFS and Lifebroker are part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL), which includes the insurers TAL Life Limited ABN 70 050 109 450, AFSL 237848 (TAL Life)). TAL Life issues life insurance policies including TAL Accelerated Protection, Asteron Life Complete, and Protections Plan (previously branded BT, Westpac or St. George) that we may compare from time to time. 

insurance.com.au Pty Ltd ABN 27 163 909 073, AR 443422 (insurance.com.au) is authorised by Insurance House Pty Ltd ABN 33 006 500 072, AFSL 240954 (Insurance House) to provide financial services on their behalf including making referrals to Steadfast Life Pty Ltd ABN 81 111 380 388, AFSL 421904 (Steadfast Life) for the provision of financial product advice and dealing in various products including life insurance products to insurance.com.au clients. A copy of Steadfast Life's FSG is available here. Steadfast Life may refer retail clients to Lifebroker for assistance with life insurance products, where only general advice is required. Insurance.com.au is a General Insurance broker and does not provide advice on or arrange life insurance products. 

Important information about our referral arrangement: 

Steadfast Life, Insurance.com.au and Lifebroker have an arrangement to refer clients and receive commissions. 

insurance.com.au may also refer retail clients to Lifebroker for general advice on life insurance products. If you purchase a life insurance product after being referred to Lifebroker, Lifebroker will pay a commission to Steadfast Life (Referral Fee) and insurance.com.au is entitled to receive a portion of this Referral Fee as remuneration from Steadfast Life. Lifebroker does not pay any remuneration directly to Insurance.com.au. For more information about the services provided and referral arrangements, you can access insurance.com.au’s FSG here, and Lifebroker’s FSG here.

Disclaimer:

Life and Income Protection insurance services is provided by Steadfast Life Pty Ltd ABN 81 111 380 388 AFSL 421904. The Steadfast Life Financial Services Guide (FSG) is available here. 

The information provided is of a general nature only and has been provided without taking into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information, having regard to your own individual objectives, financial situation and needs. Before making a decision based on any of the information, you should consider whether it is appropriate to your particular circumstances. You should also obtain and consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decision to acquire, or continue to hold a financial product. Insurance.com.au does not provide the personal insurance products included in this article. Through its arrangement with Steadfast Life, insurance.com.au can arrange for a Steadfast Life broker to assist you. insurance.com.au is part of the Steadfast Group Limited. A copy of Steadfast Group Limited’s Financial Services Guide (FSG) is available here. Your personal information will be handled in accordance with the Privacy policies of the parties involved. insurance.com.au may receive a fee for referring you. 

insurance.com.au provides access to these products and services on a referral basis.