Compare Income Protection Insurance
compare Top insurance Brands and find the best income protection policies to suit you
Why it is important to compare Income Protection Insurance policies
Less than 1 in 3 working Australians have income protection insurance. This is despite being able to claim a tax deduction for the premium
Income Protection Insurance, also known as income insurance, provides a monthly income stream while you are unable to work due to accident or illness.
Regular payments can help you to meet living expenses and debt repayments and can help you maintain your standard of living during periods you are without your income.
Our online quoter can be used to compare income protection policies from up to 10 insurance brands.
How does income protection insurance work?
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).
A popular misconception is that income protection policies provide a benefit if you are made redundant or involuntarily unemployed – this is not usually the case. There are other options you can look at for covering your mortgage repayments against redundancy.
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 (or provide an ongoing 5% discount if you prefer).
Find out more about the Insurance Watch 10% Cashback* Offer.
Learn how by shopping around you could save up to 60%.
If you intend to hold your policy long term, there could be savings taking out a level premium vs a stepped premium.
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.
Use our online comparator to :
- Compare quotes from 10 different insurance brands
- Choose between Standard, Intermediate and Best Available cover
- Star ratings from research house Omnium for product features and benefits
- Summary of strengths and weaknesses of each policy
- Full Product Disclosure Statements from the insurers
- Emailed report with policy differences table
When comparing policies it is important to consider the following:
- Does the monthly benefit reduce from 70% to 60% or lower after 2 years on claim
- Does the definition of total disability change from “Own Occupation” to “Any Occupation” after 2 years on claim
- Do you have to be totally disabled for a specific period of time at the start of the waiting period
- Is guaranteed future insurability included to allow increases in the future without medical evidence
- Will sick leave payments offset income protection payments only when taken
- Are there booster options to increase payments in first 6 months on claim
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 1,700+ customer reviews show which insurers rate well for:
- Customer service both during and after an income protection insurance application
- Income Protection claims experience
Compare insurance companies based on their:
- Size
- History
- Ownership
- Most recent awards
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