Income Protection Insurance

Income Protection Insurance

Income protection insurance is an important type of insurance that helps replace your income if something happens that stops you from working and earning a living. Many people think that life insurance is all they need in the way of protection however most basic life policies only pay on death or total permanent disablement. Historical data shows that being laid up as a result of an illness or accident is a far more likely scenario that could prevent you from going to work for quite a while.

Do you need Income Protection?

If you're not able to work for health reasons, your ongoing expenses aren't going to change. You're still going to have to meet rent or mortgage repayments; household expenses, school fees and other regular commitments. And on top of that there are probably expensive medical or rehabilitation bills to pay.

If you're an employee and you're disabled for longer than your sick leave entitlement, your salary could cease - or at best reduce - depending on your employer. Workers Compensation will only pay out for events connected with your job. And even if you do have a Workers Compensation claim, it may not be sufficient to cover your living costs.

If you're self employed it becomes even more complicated. If your business relies on your being there, the business income could be drastically reduced.  And if you have to employ extra staff, this will add to your overheads, so either way your income will suffer.

What you really need at a time of illness is peace of mind, so that you can recover as soon as possible. You don't want your family to suffer additional stress either. Knowing that there's money coming in each month will be a huge relief for everyone.

Income Protection could be regarded as essential cover against the unexpected. Because, when you think about it, your ability to keep earning is probably your greatest asset.

What Income Protection Covers?

In general Income Protection cover pays out a percentage of your salary when you are not able to work. Each policy is different and you may be able to choose from the following options:

1. The percentage of salary to be paid out. Most Income Protection policies offer up to 75% of your regular income and there are different levels of cover to choose from.

2. Waiting period before you are eligible for pay out. This means the minimum period you need to be off work before the policy pays out and can be from 2 weeks to 2 years or even longer.

3. The benefit period.  This is the amount of time you are covered for and this could be 6 months, 1 year, 2 years or up to 5 years. (for income protection most policies cover you from 60-65 years of age).

Your premiums will depend on the cover you choose. But the

good news is that in most cases the premiums are tax-deductible.

To find the best value for money cover, you should look to compare income protection products. 

How to Apply for Income Cover?

It's simple either apply for free income cover quotes online here or just call us on 1300 CHOOSI for more helpful information and the ability to choose from a range of products in one place.

Need Help Choosing? Call 1300 884 384

8am to 8pm (EST), Mon to Fri.

Our team will be happy to help.


These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.

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Choosi Pty Ltd (ABN 15 147 630 886) offers insurance products from a range of Australian brands. Choosi does not provide information, or offer cover, for all products available in the market and there may be aspects to some products that we do not compare. Choosi is not an insurer and cover is issued by various underwriters. Your use of this website is undertaken in accordance with the full Terms and Conditions.

Choosi is owned by Hollard Financial Services Pty Ltd (ABN 53 128 692 884), the distributor of each pet insurance, life insurance, income protection insurance, funeral insurance and final expenses insurance policy Choosi is able to arrange directly for the following brands: ACE Insurance Limited, Australian Seniors Insurance Agency, Guardian Insurance, Prime Pet Insurance, Real Insurance, RSPCA Pet Insurance and Woolworths Insurance. Choosi is also a related company of The Hollard Insurance Company Pty Ltd (ABN 78 090 584 473 AFSL 241436), the issuer of each pet insurance product Choosi is able to arrange directly. Information on this website does not take into account your personal objectives, financial situation or needs. You should consider the relevant Product Disclosure Statement (PDS) for more information and to ensure the product suits your needs. The PDS for each of the pet insurance, life insurance, income protection insurance, funeral insurance and final expenses insurance products sold through Choosi and our advisor partner are available through this website. Health Insurance products are not required to have a PDS, but this website has a Fact Sheet for each Health Insurance product Choosi is able to arrange.


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