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Planning • 3 min read

How much does Income Protection Insurance cost?

Find out how Income Protection Insurance benefits are calculated, and what factors are considered when making up your policy.

Income Protection can help give you and your family financial peace of mind if you are unable to work due to illness or injury.

Here are some of the factors that can influence the cost of your Income Protection policy:

  • Age—any age between 18 and 60 years is generally insurable within minutes.
  • Health behaviours—this can include smoking and your health history.
  • Occupation—Your occupation will impact the premiums you pay and if you work in a risky environment this may increase your premiums. Be assured that Insuranceline Income Protection Insurance can cover a range of occupations.
  • Sick leave entitlements—paid sick leave periods will cover you for short periods of time. If you don't need your Income Protection Insurance to kick in immediately, you could choose a longer waiting period before a sickness or injury claim becomes payable.
  • Savings—this will influence how long you could get by without changing your lifestyle or selling off liquid assets. Conversely, if you live from pay day to pay day, you’d want short waiting periods built into your Income Protection cover.

Depending on what you want your Income Protection to cover, premiums can be as little as a couple of dollars a day. Generally, and depending on your circumstances, you could consider expenses like:

  • Rent or mortgage;
  • Vehicle and transport (petrol for your car or fares for public transport);
  • Household expenses (bills for water, gas, electricity, internet, phone, rates);
  • Food and drink;
  • Education fees or childcare; and
  • Entertainment (clothing, concerts, movies, DVDs)

It’s a good idea to get a rough understanding of your expenses before you get an Income Protection quote. You should also be aware of how you structure your cover, as these can affect how much you get and when you get it. For example, you can tailor your policy according to:

  • Waiting periods—this is how long you need to wait to make a claim after taking out the cover. With Insuranceline Income Protection Insurance, you can choose between 14, 28, 60 or 90-day waiting periods.
  • Benefit periods—when you set up your cover, you will be asked how long you would like to receive benefits for in case of a claim. With Insuranceline you can receive Income Protection Insurance payouts for 6, 12 or 24 months, or 5 years.
  • Additional benefits—you can add extras to your policy that help to enhance your cover, for example the Accidental Benefit Option, which will backdate payments to the start of your 14 or 28-day waiting period if you are unable to work due to an accidental injury.

What does Income Protection Insurance cover?

Income Protection Insurance provides payouts of up to 75% of your income if you are unable to work due to illness or injury. This means your family can keep up with your regular outgoings, even if you are unable to work, leaving you free to focus on your recovery.

To find out more, get an Income Protection Insurance quote online or give us a call on 13 77 87.


Important Information

Qualifying Periods apply after the Cover Commencement Date for Sickness and Injury Cover and Mental Health-Related Conditions. You will not be paid a Benefit amount for Sickness, Injury or Mental Health-Related Conditions during Qualifying Periods. A Qualifying Period applies when you first take out cover, and if you increase your Monthly Benefit amount.

Please refer to the Combined Product Disclosure Statement and Financial Services Guide for more information.

Backed by TAL

^Insuranceline Win 1 of 5 $1000 Visa Cards (Competition). Subject to the Terms and Conditions, the Promotor is offering customers a chance to win one of five Digital Visa Gift Cards valued at $1,000, in one of the four draws. Entry commences on the 1st of April 2024 and will run for four months until 11:59pm AEST on the 31st of July 2024 (Entry Period). During the Entry Period, to be eligible to participate in the Competition, customers must get a quote and take out a new Insuranceline Life Insurance, Income Protection Insurance, or Funeral Insurance policy to enter the Competition. A maximum of one (1) entry into the Competition will be awarded per eligible policy. The Promotion is not open to existing customers, or customers who have cancelled a Promoter branded policy in the 12 months prior to the commencement of the Entry Period and then taken out a new Insuranceline branded policy. Each of the four Prize Draws will take place at Level 16, 1 Denison Street, North Sydney NSW 2060 on the respective Prize Draw and Time, as listed in the table in Condition 13 (and if any Redraws if there are any unclaimed prizes, Condition 19) of the full Terms and Conditions, and the winners will be sent an email and will be attempted to be notified via phone within two (2) business days of the Draw and published on Max. retail value of the total prize pool is $20,000. To be eligible at time of the draw, customers must still have an active policy and have paid 1 month of premiums in full. View eligibility criteria and full terms and conditions here. Promoter: TAL Direct Pty Limited ABN 39 084 666 017 AFSL 243260. Permits: NSW NTP/09255, ACT TP24/00483, & SA Licence No. T24/388.

**Bonus 10% more cover is calculated on the fifth anniversary from the Policy Commencement Date. Each adult life insured will have an extra 10% of the average Funeral Insurance Cover amount held during the previous five years added to their Funeral Insurance benefit. Terms and conditions apply. Refer to the PDS for more information.

#Claims paid figures relate to all Insuranceline life insurance policies in the 2021 financial reporting year (1 April2021 to 31 March 2022). All claims on Insuranceline policies are assessed against the relevant policy terms and conditions. These terms and conditions, as well an explanation of the claims process, can be found in the applicable Product Disclosure Statement. Claims are administered and settled by the insurer, TAL Life Limited.

***Insuranceline is the longest standing provider of Funeral Insurance in Australia, based on: Strategic Insight, Actuaries & Researchers. Funeral Insurance means a policy with periodic premium payments that provides a lump sum to help pay for funeral and associated expenses when you die and excludes pre-paid Funeral Plans and Funeral Bonds.

The information provided on this website is general advice only which means it does not take into account your individual needs, objectives or financial situation. For this reason, you should consider whether it is appropriate for you, and before you decide to buy or to continue to hold an insurance product, you must read the relevant Combined Product Disclosure Statement (PDS) and the Financial Services Guide (FSG). The PDS/FSG contains important information which will help you understand the product, including what's covered and what's not covered and to decide whether it is appropriate for you. The Target Market Determination (TMD) for the relevant product, where applicable, is also available.

If you are considering cancelling a policy you already hold in order to replace it with a new policy, make sure you read the terms and conditions of both policies before you make a decision. The cover terms may be different, you may lose benefits accrued under your existing policy, and waiting periods may apply to the new policy. Changes in your personal circumstances (such as your age, health, and employment) that have occurred since your existing policy was originally taken out may also affect your new policy. As your application for a new policy may not be accepted, and some policies may be unable to be reinstated after they have been cancelled, you should consider waiting until your new policy is confirmed before you cancel any existing cover.

Promoted by Insuranceline, a trading name of TAL Direct Pty Limited (of Level 16, 363 George Street, Sydney NSW 2000) ABN 39 084 666 017 AFSL 243260. TAL Life Limited ABN 70 050 109 450 AFSL 237848 issues the life insurance benefits. St Andrew's Insurance (Australia) Pty Ltd ABN 89 075 044 656 AFSL 239649 issues the Involuntary Unemployment Cover.

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