What is the average cost of income protection insurance

The average cost of income protection insurance policy with a $3000 per month benefit is $76.75. This is based on a mix of profiles for both men and women, accountants and carpenters, with an annual income of $70,000.

Is income protection insurance worth it?

Income protection insurance can give you financial relief if you're unable to work due to an injury or illness. This can be particularly useful if you've used up all your sick relief or aren't eligible for workers compensation. You'll be entitled to up to 75% of your income with most policies, which can help pay for expenses that inevitably come your way while you're out of action. Whether it's ultimately worth it for you will depend on your budget and ability to afford the policy premiums and in the future. Various factors like your age, health, and lifestyle will impact how much your income protection premium will be. You should weigh this up with your budget to decide if it's right for you.

How do I calculate how much income protection insurance I need?

Work out how much income you'll need to cover general living expenses if you're unable to work. Consider any current future debt payments as part of this. This is a good price ceiling for you to work with to know what you can afford. It's also worth checking whether you already have a level of income protection through your superannuation or from another insurance policy. Many Australians will get income and life insurance by joining their superfund, which may make buying an expensive income protection policy unnecessary.