Income protection lump sum payout
Rather than receive your income protection benefit as a monthly payment, you may be eligible for a lump sum payout.

If you are sick or injured and unable to work for a while – or even ever again – you can breathe easy knowing your income protection policy will cover up to 85% of your income every month for a set period while you're recovering.
Depending on what your injury or illness is, some insurers offer your payout as an upfront lump sum rather than on a monthly basis until the policy expires. This can be particularly handy if you've accumulated significant medical expenses during your initial treatment.
Response | WA | VIC | SA | QLD | NSW |
---|---|---|---|---|---|
None of the above | 4.5% | 3.08% | 3.7% | 2.73% | 3.06% |
Getting married | 3.6% | 1.03% | 0.91% | 0.56% | |
Having a baby | 3.6% | 2.4% | 1.23% | 1.82% | 2.51% |
Starting a new job | 2.7% | 1.71% | 2.47% | 3.64% | 1.95% |
Buying a car | 0.9% | 0.34% | 0.28% | ||
Buying a home | 0.9% | 2.74% | 3.7% | 1.82% | 2.79% |
Retirement | 0.9% | 0.68% | 1.36% | 1.39% | |
Starting university education | 0.9% | ||||
Getting older (but not retiring) | 1.71% | 1.23% | 0.91% | 1.95% | |
Starting my own business | 1.37% | 1.36% | 0.56% | ||
Moving home | 0.68% | 0.45% | 1.11% | ||
Your children moving out of home | 0.45% |
A lump sum payout isn't available for all types of illness or injury. For example, you can't take a few months off work for a broken leg and expect to get a lump sum paid out. Generally speaking, a lump sum benefit is available if you become totally and permanently disabled. Each insurer has its own criteria that must be met to be considered for a lump sum payout under total and permanent disability (TPD).
Conditions that are commonly covered by a lump sum benefit include cancer, stroke or quadriplegia, among others. Be sure to have a look in the insurer's product disclosure statement (PDS) for an exact list of qualifying events and medical definitions, as often you'll be eligible for a lump sum payout if your condition fits those pre-determined in the PDS.
To be eligible for a lump sum payout, you'll usually need to be medically certified that you are totally and permanently disabled. This means your doctor has decided you're unable to return to the workforce due to your condition.
Once your doctor has given you TPD certification, the lump sum settlement is usually determined as follows:
If you don't choose a lump sum payout, you can receive your benefit on a monthly basis for a specified period. If you've met the criteria for a lump sum payout, generally you'll be eligible to receive the monthly benefit up until age 65 (depending on your insurer and policy).
Here is a list of insurers that offer the option of a lump sum payout:
Brand | Offers lump sum payout? | Apply |
---|---|---|
![]() | More info | |
![]() | Get quote | |
![]() | Optional | More info |
![]() | Get quote | |
![]() | Get quote | |
![]() | More info |
It's wise to always read the PDS before deciding on the right policy for you as each product varies slightly.
With ahm income protection, you can over up to 70% of your income (up to $10,000 monthly) if you can't work after sickness or injury.
Income protection can be super valuable for when times get tough. Learn the basics with our beginners guide.
You can get income protection insurance if you’re over 50. Find out more here.
How much could you save if you lived in a different city in Australia? Let's find out.
Learn the built-in benefits of TAL income protection to understand how it could work for you. Compare features and get a quote today.
Find out what is and isn't covered by AAMI Income Protection and how to apply.
Read the Finder review of Zurich income protection and receive a quote based on your details. Compare Zurich income protection to other income protection policies available.
Receive income cover for illness or injury with Suncorp Income Protection.
Looking to protect your income if you suffer a serious illness or disability? Insuranceline Income Protection can cover up to 75% of your income
Looking for the best income protection insurance but not exactly sure where to start? Compare the Finder Awards 2024 insurance winners.