Accidents can’t be controlled. But you can control whether you get income protection or not. Income protection guarantees that you are still paid a percentage of your salary in the case of an accident or illness. Read More

Income Protection

Compare and decide the quote that’s right for you

Income protection ensures that in the case of an illness or accident you continue to be paid an allocated percentage of your salary. It is an extremely popularly claimed product that can ensure financial security during a family emergency.

The search for an insurance quote can often be hard and time consuming. We aim to make the process simple and to save you time by providing you with a comparison of quotes from Australia’s leading insurers. Such companies include MLC, CommInsure and AMP. We provide a selection of quotes, you compare between them and then decide which policy you will go with.

The quote you choose is important to you and we understand that. That is why we provide you with a comparison of the best policies for you to compare and choose for yourself.

We offer you a comparison of quotes to suit your family’s needs.

When it comes to your family, we understand that you only want the best. With the extensive amount of quotes available online, the search can often be time consuming and exhausting. We are a service that carries out the search process for you, providing you with up to date comparison of quotes from Australia’s major life insurers.

Using leading edge technology we provide you with up to date data to compare the best quote between Australia’s major insurers. We provide the quote and you make the comparison and choose the policy that will best cover you and your family.

To compare income protection insurance offerings, jump online today and pick one to suit your family’s needs. Just like put your family first, we put you first too.

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Income Protection

Your earning capacity is your greatest asset - insure it now!

What is Income Protection?

Income Protection pays a % of your income if you are unable to work due to illness or accident. It is one of the most 'claimed on' insurance products as most people have some time in their working lives when they are off work due to illness or accident. Income Protection is also known as: salary continuance, TTD – total but temporary disablement, wage insurance, salary insurance cover. Premiums are calculated based on the amount of cover you want, when you want it to start paying and how long it pays for.

Other factors such as your occupation, state of residence, age, gender, smoking status as well as health factors such as height/weight ratio also effect the price you pay. You can insure up to 75% of income with some insurers allowing you to cover up to 84% (to allow for Superannuation Guarantee.) Income Protection premiums are fully tax deductible and any benefits received are assessed as income. If you are income dependant then this insurance is a necessity. Income Protection is paid as a regular income stream – usually monthly after the completion of the nominated waiting period if you are unable to work due to accident or illness. The sum insured is payable to the policy owner who is usually the individual.

What is the purpose of the cover?

The payment provides a regular income stream that could allow your family to continue meeting their daily living expenses such as mortgage, personal loans, guarantees, credit cards and store cards – (Australians have over time increased their dependency on debt to fund lifestyle requirements).

Features

There are some key features of income protection which need consideration.

  • Benefit period
  • Waiting period
  • Agreed Value v's Indemnity
  • Extended v's Basic
  • Benefit Period
  • This term refers to how long you will be paid if you are on claim.

The standard benefit periods offered are:

  • 1 year
  • 2 years
  • 5 years
  • to age 55, 60 or age 65

There are a number of reasons why there are different periods: Your occupation is a major factor. High risk occupations where this is a greater chance of claiming such as heavy manual work are usually restricted to shorter benefit periods. Retirement age. This is why there are plans which cease at age 55, 60 and 65 – so that you can mirror your intended retirement age. The other main reason is to give people choice and flexibility with price, as the shorter policies are generally cheaper. Which benefit period is the best? Generally, the longer the better. The longest you can afford and the longest you able to get based on your occupation. If you were to have a long term illness, a guaranteed income until you were 65 and had reached retirement age would provide you and your family with financial protection.

Waiting Period

This term refers to how long you have to wait before being paid a claim. The standard waiting periods offered are:

  • 14 days
  • 30 days
  • 60 days
  • 90 days
  • 1 or 2 years

There are a number of reasons why there are different waiting periods:

Employees usually have sick leave accrued, so long term employees can take a longer waiting period, as they know their incomes will continue due to their sick leave. Self employed people on the other hand who have no sick leave, need to make sure that they are covered with the shortest waiting period they can afford, so that their cash flow continues. A 2 year waiting period is very common where a person has a 'total but temporary benefit' under their superannuation plan – so they tailor their personal income protection policy to start at the time that the income under the total but temporary benefit stops. The other main reason is to give people choice and flexibility with price, as the shorter waiting periods are generally more expensive.

Which waiting period is the best?

Generally, the shorter the better.

Agreed Value or Indemnity?

These terms refer to how much you will be paid while on claim.

Agreed Value

An agreed value policy is one where the amount payable while on claim is agreed at the start of the contract. This is validated by providing the insurance company with proof of your financial earnings at the time of application. Proof of income is usually in the form of last 2 current pay slips if you are an employee or last 2 years annual tax returns. For self employed people not only do you need to provide personal income tax returns, but in some cases the insurance company may also want tax returns from your business as well. Once you have proven your income, you have peace of mind that if you have to claim, you know what the payment will be – regardless of what you are earning at the time of claim.

Indemnity

An indemnity policy is where you provide specific income details at the time of claim. So while you gave an indicative income at the time of application – you didn't have to prove it. So at claim time, the insurance company will ask for proof of your income prior to claim, and if it is lower than what you had applied for, you will only be paid the lesser amount. Indemnity policies are cheaper, and depending upon your occupation, maybe the only style of policy available to you. They are also the only style offered to people who are in new jobs or who have recently become self employed. If you are a long term employee who has a stable income, this type of policy will provide you with cost savings, and you know that at any point in time you will be able to prove your income.

Which is the best?

Generally, an agreed value policy will give you peace of mind. However, if you are an employee whose income does not fluctuate, then an indemnity policy can save you money.

Extended or Basic?

These terms refer to how many ancillary benefits you will be eligible for while on claim. Extended An extended policy is one which includes everything. It is generally the top of the range product which has every 'bell and whistle'. In addition to paying you an income while you are on claim you may be entitled to additional benefits such as home nursing care allowance, travel allowance for you and family members if you require treatment in another city etc. Basic A basic policy gives you protection only. It is often referred to as the 'no frills' product. Basic policies are cheaper, and depending upon your occupation, maybe the only style of policy available to you.

Which is the best?

It depends what you are looking for. If price is an issue, consider basic however if you believe that the ancillary benefits may come in handy, go for the extended policy.

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Insurers we work with:

  • AIA
  • AMP
  • Asteron
  • CommInsure
  • Macquarie
  • MLC
  • OnePath
  • TAL
  • Zurich

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