Income protection for over 60 in Australia

*This table was correct as of on 3 April 2023. Keep in mind that restrictions may apply. For example, some occupations won't be covered after a certain age.

If you're having trouble finding advanced age income protection insurance it may be worth consulting an insurance broker to help with your situation.

What's the benefit of having income cover in your 60s?

• Cover against risks. Life today is full of uncertainties; income protection helps you keep up with your expenses if an injury or illness puts you out of work in the short term e.g. 6 months.
• Tax concessions. Plans may be tax deductible in some circumstances. If you buy a direct income protection insurance policy, then you could get some money back on your annual tax return.
• Helps with ongoing bills, including the mortgage. Insurance also acts as a tool to cover mortgages and loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on family members.

What to look for when comparing income protection policies if you're over 60

• Benefit period: Income protection pays you a benefit up to 75% of your gross monthly income. The length of cover may vary between each provider but there are income protection policies which extend cover to age 65. So even if you are 60 or older, there is still something for you.
• Premium waiver: A waiver feature lets you waive the premiums when you are receiving the pay-out, and retain the police without payment of premiums.
• Guaranteed insurability: Also referred to as "guaranteed renewability", this is an important feature. It means the insurer cannot decide to decline your policy renewal, and that you'll retain cover until the expiry age as long as you don't let it lapse. Without this feature an insurer may decide not to renew your cover after a certain age, when the risks, and therefore the chance of paying out, is higher. Moreover, a non-cancellable contract may also let you renew your cover even after making a claim. Policies with this option may cost more than those without, but the security is generally well worth it.
• Waiting period: Another thing that you should be looking for is the length of the waiting period. How long are you willing to wait before you can cash in your claim? Income protection has flexible waiting periods you can choose from between 14 days to 24 months. Some policies offer a no waiting period feature, however, policies with no or short waiting periods typically have higher premiums than those with longer waiting periods.
• Rehabilitation expenses benefit: A feature that benefits anyone over 60, this benefit pays you an additional amount to help with rehabilitation costs. Other income protection policies also have added medical and surgical expenses benefits. This offer will vary from provider to provider. The best way to find out if these add-ons are available is to compare various income protection policies from different insurers.

Speak to an insurance specialist to help you find personalised cover

Frequently asked questions

• What's the cut off age for income protection?

  Finder research shows the cut-off range for income protection ranges between 55 and 65 in Australia. The maximum age varies from insurer to insurer. We didn't analyse the entire income protection market.

  Income protection provides cover for up to 75% of your regular income in if you're forced to take time out of work as a result of serious injury or medical condition.

  Policies can be tailored to include a range of features to give you the right support during your recovery period. Cover for rehabilitation expenses, nursing care and bed confinement are just a few of the benefits available.

• Do income protection policies held in super have different age limits and requirements?

  The options, maximum entry ages and maximum age limits will vary between individual policies and insurers – both inside super and outside. Each policy should be considered on its own merits. Typically, cover options generally become more limited after age 59 or 60 (and there are some limitations more broadly with insurance held inside super).

  If you're planning on working beyond age 65 it's preferable to check your cover as soon as possible and see if you're still protected beyond that age.