The Best Income Protection Insurance Australia, Factors, & How to Choose It

One of the best options to protect yourself is having income protection insurance Australia. The insurance will protect you in case you suffer some illnesses and injuries that make you stop working. Usually, the policies will cover up to 70% of the benefit.

However, there are some factors to determine the cost. There are some insurance companies in Australia that make you confused to choose from. Here are the factors, how to choose it, and the best insurance companies.

The Factors Impact Protection Insurance


1. Age

This is an important factor in protection insurance Australia. The value of premiums will increase with age. The reason is people of more ages tend to have some medical problems, though it is not always the case.

2. Gender

In Australia, women will pay more. They are considered as the ones who are more susceptible to having some special medical conditions in general. The examination in women is more often, so income protection insurance Australia is higher.

3. Benefits

In any insurance, they will be a period and it is one of the benefits that you can choose. The length of the period for the benefit, the higher the premium. The benefit of a shorter period of waiting is considered as the factor to pay more.

4. Lifestyle

Some people have dangerous hobbies and lifestyles. The insurance companies will not tell you to stop but increase the premium. Example of dangerous hobbies or lifestyle is wall-climbing, riding a bike, diving, etc.

5. Smoking habit

Smoking habits are one of the factors in income protection insurance Australia. This habit increases the premium of insurance by up to 50%. It is because the smoker tends to have health problems and the risk is increasing as aging.

6. Occupation

Occupation is also one of the factors that determine the premium. Some duties in the work field can be too dangerous. In Australia, people in the blue-collar category will pay more than other occupations.

7. Medical condition

The companies will check whether you have a health problem or a pre-existing medical condition. Some conditions might be uncovered and excluded. Therefore, you have to check the information about covered illnesses before choosing one of the income protection insurance Australia.

How to Choose Income Protection Insurance in Australia


1. Choose the type of insurance

Income protection insurance has two types, stepped premium and level premium. The cost of the stepped premium is lower when it starts. As you are getting older, the premium will be higher. For the level premium, you start by paying more and it’s getting less expensive after years.

2. Know your income and occupation

Income will determine the cost of your premium insurance. If you have a higher income, you will pay more. As well as the fact that your occupation is dangerous or high-risk. The benefit is claiming the insurance will be larger under the policies of the insurance company.

Some insurance companies might not cover the occupation you have. Before choosing one of income protection insurance Australia, you have to check the list of occupations they will cover. Those who work in dangerous jobs will pay more, but larger claims.

3. Understand the policies

The policies of every company will be different. It is not enough to understand by reading the policies only. You have to discuss your concern, especially regarding the claims. It is hard to change the premiums when it is ongoing already.

4. Compare the quote

The quote from Australia income protection insurance will be different according to the company’s policies. You can compare the quote on their calculator by filling in the information about income, tax, factors such as smoking and occupation, medical condition, etc.

The Best Income Protection Insurance Australia

1. AAMI Income Protection


This company gives maximum monthly benefits of up to $10,000 with 76% covered. The benefit period lasts up to 5 years with acceptance up to 87%. The claim time is short, only 2.1 months maximum. You can register this insurance when you are 18 years and up to 60 years only.

This insurance doesn’t cover death cases, children’s insurance options, and redundancy. AAMI offers a stepped premium because you only pay more when getting older. This company is a popular income protection insurance Australia because of its percentage of income covered.

2. Suncorp


There are some features that Suncorp offers as income protection insurance Australia. The benefit is up to $10,000 monthly when you can’t work because of getting injured or sick. The cover is up to 75% of your income. The period range is 6 months, 1 year, 2 years, and 5 years.

Suncorp has a premium benefit if you have an accident or any disabilities caused by an accident. They will allow you to not pay the premium for up to three months. They also do some indexation to adjust your income with premiums.

3. NobleOak Income Insurance


This company is an award-winning company of income protection insurance Australia. The benefit they offer is up to $30,000 and it is twice as much as other insurance companies. This company is popular for replacing the income when you are sick or getting injured with a serious problem.

NobleOak also covers death cases totally or partially, depending on the benefit you choose. There are some options that other companies don’t have such as nursing benefits, and rehabilitation benefits. The coverage from NobleOak is up to 70% of income.

4. TAL Income Protection


This income protection insurance Australia has many ranges of overage and is underwritten fully. They will adjust it according to the circumstances you have in the workplace. The claim time is shorter than other companies. TAL Income Protection covers 70% of income and it is up to $30,000.

The premium provides some benefits such as work assistance, bed confinement, inflation protection, and recurrent disability. They also provide death benefits of up to $10,000 when you are still under the policy.

The benefit of income protection insurance Australia helps you to protect yourself for cases such as getting injured or after an accident. You don’t have to worry about your monthly payment since the coverage is high.

Choosing the best insurance might be challenging, but you can pick from the option above. Make sure you read the policies and understand them well. The premium is sometimes confusing, so you had better discuss it with the companies.