Best Income Protection Insurance in Australia

• Show summary

  Best income protection insurance in November 2024

  • Top pick for mental health cover: AAMI
  • Best income protection policy: TAL
  • Highly commended: NobleOak
  • Top pick for features: Insuranceline

  Read the full methodology

Top pick for mental health cover: AAMI income protection

Why choose AAMI?

AAMI income protection could be good if you want a policy that covers mental health or pre-existing conditions, as it's one of the few insurers that clearly states it can cover you.

• We chose AAMI because it covers mental health conditions and pre-existing conditions if you meet its health assessment criteria. While other insurers can cover mental health conditions, only 1 other insurer (Suncorp) clearly states that it will cover pre-existing conditions. However, AAMI scored a higher overall score compared to Suncorp in our Finder Awards.
• Like other insurers, it can pay you income replacement if you're unable to work due to mental health issues for up to 2 years.
• It's also a very comprehensive policy. It can pay up to 75% of your income, which is more than most, and you get a 5% off if you have other policies with AAMI.

• You won't be able to claim on mental health conditions within 6 months of taking out cover. This is the same as other income protection policies.
• AAMI's income protection product doesn't have a lot of customer reviews so it's difficult to gauge how good its customer service is. However, it's policies are issued by TAL, one of the leading life insurers on the market.

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Why we chose AAMI

We looked at 10 income protection insurance policies and selected our top pick based on the following benefits: claim benefit period, qualifying period and pre-existing conditions cover. Other insurers including Insuranceline, Zurich and Suncorp can cover you if you need to take time off due to a mental health condition. However, only Suncorp specifies that it will also cover pre-existing conditions. We chose AAMI though because it received a higher score in our Finder Awards. We didn't look at every insurer on the market.

The full methodology behind our awards

Best income protection for value : TAL income protection

Why choose TAL?

TAL is our expert's top pick because it's the cheapest policy on average and the 2023 Finder Award winner – you can start receiving 70% of your monthly income within 2 weeks of submitting a claim.

• It's the cheapest income protection insurance policy on average, according to our 2023 research of 10 popular Australian income insurers including NobleOak, Suncorp and AAMI. This is based on 260+ quotes we got for 24 different customer profiles, ranging from 30-60-year-olds.
• It's the cheapest income protection policy for tradies such as carpenters. On average, a policy cost $81 per month. That's $45 less than average.
• It comes with flexible waiting periods more info button of 2, 4, 8 or 13 weeks. So for example, if you want to receive payments sooner, you could choose 2 weeks. If you have some savings you can rely on, you could select 13 weeks and pay less for a policy.

• It can cover 70% of your income. The industry average is 70% but some insurers such as Insuranceline can cover up to 75%.
• It has a lot of negative customer reviews. Complaints range from premium increases to being rejected because of certain health issues. However, according to APRA, it has an above average claims acceptance rate of 95.7%.
• It can cover you for up to $30,000 per month. This is above the industry average (out of 12 insurers, only 4 others offer this much) but it's only really helpful for very high-earners.

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Why we picked TAL

We picked TAL because it is 2023 Finder income protection award winner. To determine the winners, we got 264 quotes across 10 income protection providers. These were:

• AAMI
• Bendigo
• Insuranceline
• NobleOak
• RAC
• RACQ
• Suncorp
• TAL
• Zurich
• Real

To get a fair average, we used 32 different profiles to gather our quotes. These ranged from a non-smoking 30-year old white collar female to a blue collar 60-year-old male smoker.

Our experts then researched and rated 8 features across 10 policies. The winner was based on a 70:30 split of the features and price score.

The full methodology behind our awards

Highly commended: NobleOak income protection

Your premiums are tax deductible

Say you're paying $40 a month in income protection premiums, you can claim all that back at tax time. If you have other types of insurance bundled with your income protection policy, such as personal injury, these won't be tax deductible.

Top pick for features: Insuranceline income protection

Why choose Insuranceline?

Insuranceline income protection is a good policy if you want covered for a larger percentage of your salary (75%) and access to some sign up perks others don't offer.

• It can cover up to 75% of your salary. That's 5% more than the industry average, and one of the main reasons it scored better than any other insurer for features in the Finder Awards.
• It comes with flexible waiting periods more info button of 2, 4, 8 or 13 weeks. This could be helpful if you want to receive payments sooner (you could choose 2 weeks) or have some savings you are happy to fall back on for a while (by selecting 13 weeks). The longer the waiting period, the cheaper your monthly payment will be.
• There are sign-up perks as well. You also get a $100 gift card after your first 4 months. This offer ends 31 March 2024.

• Insuranceline isn't typically the cheapest policy. TAL and NobleOak tend to offer cheaper policies.
• While this isn't part of its income protection product, Insuranceline has had some negative reviews and press over its funeral insurance product. Some customers have paid more for insurance than the cost of the funeral itself.

Why we picked Insuranceline

We selected Insuranceline because it performed best in the Finder Awards for features. This was largely because it is one of the only insurers to cover up to 75% of your salary, come with several waiting period options and pay you an income for up to 5 years.

The full methodology behind our awards

There's no cover for redundancies

Unfortunately, income protection policies don't generally cover redundancies anymore. They only pay out if you're unable to work because of an accident or illness.

How can I find the best income protection insurance policy?

Here are 4 features to keep an eye on when choosing the best income protection insurance for you:

Benefit period

This is how long you will be paid. Usually, the insurer will give you a few options to choose from – e.g. 1, 2 or 5 years. The smaller the benefit period you choose, the cheaper your policy will be.

Waiting period

Once you're unable to work, you can submit your claim. You'll then need to wait a specific time before your policy begins. This is the waiting period.

For example, say you submit your claim on 1 November and you select a 14-day waiting period, your policy will begin on 14 November. You will receive your first monthly payment on 14 December.

Most policies let you choose from a few different waiting periods – the bigger the waiting period, the cheaper your policy will be. If you think you can get by on sick leave for a while, it might be worth selecting a bigger waiting period.

Maximum cover

Insurers will also put caps on the amount you can claim per month. You'll only be able to earn a percentage of your current salary (usually up to 70%).

Insurers also set a maximum monthly benefit, typically around the $10,000 mark. If you earn more than that per month, insurers such as TAL and NobleOak go up to $30,000.

Stepped or level premiums

Stepped premiums go up as you get older but tend to start off cheaper. Level premiums don't increase over time but typically cost more to start off with. If you're worried about payments becoming unaffordable over time, level premiums might be best for you. Otherwise, it's likely that stepped premiums will be cheaper in the shorter term.

Compare more income protection insurance policies in Australia

Looking for more options? Use the comparison tool below to compare income protection policies or click here if you'd rather chat with a broker.

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Updated regularly

Product AUFLI-INC	Maximum monthly benefit	Maximum % of income covered	Maximum benefit period	Minimum entry age	Sum insured
TAL Accelerated Protection Income Protection Finder Award	$30,000	Up to 70%	Up to Age 65	19	$1,305 million	Get up to 70% of your income covered with flexible short and long term benefit periods.	Get quoteView details Compare	loading Fetching your data...
AAMI Income Protection	$10,000	Up to 75%	Up to 5 years	18	$222 million	Save up to 10% on premiums every year for the life of the policy on AAMI Income Protection. Offer ends 2 December 2024. T&Cs apply.	Get quoteView details Compare	loading Fetching your data...
Zurich Ezicover Income Protection	$12,000	Up to 70%	Up to 5 years	19	$5 million	Get your first month of cover free when you buy Zurich EziCover Income Protection.	Get quoteView details Compare	loading Fetching your data...
Suncorp Income Protection	$10,000	Up to 75%	Up to 5 years	18	$222 million	Save up to 10% on premiums every year for the life of the policy on Suncorp Income Protection. Offer ends 2 December 2024. T&Cs apply.	Get quoteView details Compare	loading Fetching your data...
Medibank Income Protection	$12,500	Up to 70%	Up to 5 years	18	Data not available	Save 10% on your first year of Medibank Income Protection when you apply by 10 December 2024. T&Cs apply.	Get quoteView details Compare	loading Fetching your data...

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Frequently asked questions

• What is the best income protection in Australia?

  There's no best income protection insurance, as no two people have the same needs. However, based on our awards research and expertise, TAL, AAMI and Insuranceline is Finder's top picks for November 2024. We review these policies on a monthly basis.

• How much should my income protection be?

  An income protection policy typically covers you for up to 70% of your regular income. Some will cover you for up to $30,000 a month. No income protection policy will allow you to earn more than your current income.

• Is income protection insurance worth it?

  If you rely on your income to pay bills, including your mortgage payments, then income protection is probably worth getting. It means that if you experience an accident or illness that forces you to temporarily stop work, it can make sure you don't fall behind in payments.

• What does income protection not cover?

  Income protection doesn't typically cover you if you are made redundant. Any sickness resulting from Pregnancy is another common exclusion.

• How long is income protection paid for?

  In most cases, you can receive income protection payments for between 12 months and 5 years, depending on the benefit period you select. Some insurers, such as NobleOak, also come with another option which allows you to receive monthly payments until you turn 65.

Written by

Gary Ross Hunter

Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

Gary Ross's expertise

Gary Ross has written 649 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living