How to easily compare Income Protection Insurance policies
Income Protection Insurance, also known as income insurance, provides you with a monthly income stream while you are unable to work due to accident or illness.
These regular payments can help you meet living expenses and maintain your standard of living during periods you are without your income.
Income protection insurance policies in Australia generally have the following features:
- maximum 70% of income (from 1st October 2021) able to be covered
- a waiting period which needs to be served before benefits start
- a benefit period which is the maximum period the insurer will make payments
- premiums which are mostly tax deductible to individuals
An income protection policy with a benefit period to age 65 can provide long term financial security and wealth protection (unlike a 6 or 12 month benefit period which will give only short term bill relief).
However after 2 years on claim the cover may change from “Own Occupation” to “Any Occupation” meaning you may need to consider returning to work in a different occupation. Also the % of income covered may reduce after 2 years. Differences in the policies make it important to compare benefits as well as the costs.
Compare income protection insurance quotes online & receive 10% cashback
If you compare income protection insurance quotes online and buy a new policy through Insurance Watch we will refund 10% of your premiums paid in the first year of your policy.
What are the important benefits of income protection insurance policies?
Insurance Watch doesn’t just compare quotes, we also compare benefits, as income protection policies vary widely in the benefits that they offer.
Most insurers offer basic and comprehensive policies. The best income protection insurance policies for definitions and benefits are therefore unlikely to be the cheapest. See our tips and traps when buying income protection insurance.
We compare 15+ income protection policies highlighting what to look for when comparing policies such as:
- Differences in total disability definitions
- Differences in partial disability definitions
- Additional benefits offered
- Star ratings based on product features and benefits
- Full Product Disclosure Statements from the insurers
If you are looking to keep costs down but still have good quality income protection see our 20 tips to lower income protection insurance premiums. For example, you could save up to 40% just by extending the waiting period on your policy.
We also compare the insurers offering income protection insurance
Using claims statistics from ASIC and APRA we compare insurance companies based on:
- Income Protection claims acceptance rates
- Average claim time in months
- Number of income protection claim disputes (per 100,000 policies)
Ratings based on 1,000+ customer reviews show which insurers are best for:
- Customer service both during and after an income protection insurance application
- Income Protection claims experience
Compare insurance companies based on their:
- Most recent awards