Navigating income replacement options shouldn’t be difficult. We streamline the market comparison and application processes so you can confidently evaluate policies that fit your career and budget.
We compile policy features and pricing from a broad range of Australia's top retail insurance providers.
We explain how adjusting policy parameters alters your premium, giving you the information required to align coverage with your household's baseline needs.
If you need to activate your policy, our experienced brokers manage the administrative paperwork and act as your direct liaison with the underwriting insurer.
When comparing Income Protection policies, your premium costs and coverage limits will be determined by three core settings:
This is the monthly cash injection you receive while on claim. Modern Australian policies generally allow you to insure up to 70% of your regular pre-tax income. Some policies offer a higher replacement ratio (up to 90%) for the first six months of a claim.
This is the duration of time you must be off work before your benefit payments begin to accrue. Common market options include 14, 30, 60, or 90 days. Opting for a longer waiting period typically reduces your ongoing premium costs.
This is the maximum timeframe the insurer will continue making monthly payments for a single, continuous claim. Depending on your age and occupation category, options generally include 1 year, 2 years, 5 years, or continuous coverage up until age 65.
For most Australians, the ongoing cost of an Income Protection policy equates to roughly 1% to 3% of their annual earnings. The table below highlights the structural financial difference between establishing a policy versus leaving your earnings exposed:
| Scenario | With Income Protection Policy | Without Income Protection Policy |
|---|---|---|
| Healthy and Fully Employed | Retain ~98% of income (less premium) | Retain 100% of income |
| Sidelined by Illness or Injury | Receives 70% of income via monthly benefit | Income drops to 0% (once sick leave ends) |
If you own and pay for an Income Protection policy personally outside of superannuation, the premiums are generally fully tax-deductible against your personal income. This significantly reduces the net out-of-pocket cost of the cover.
Alternatively, you can choose to fund your premiums using your accumulated super balance (including an SMSF, retail, or industry fund), protecting your personal day-to-day cash flow.
Connect & Compare: Reach out to our team to outline your regular earnings and preferred waiting/benefit periods. We generate a multi-provider comparison report detailing available market rates.
Documentation Support: Once you select a preferred policy structure, we help you compile the personal, financial, and occupational disclosures required by the insurer's underwriting system.
Liaison Phase: We track the progress of your application through the insurer’s medical and financial review process, keeping you updated on any final coverage terms.
Long-Term Care: Your policy is securely established. Our office remains available to update your coverage details as your income grows, or to facilitate the admin if you ever need to file a claim.
The content of this website is General Advice only. General advice is advice which is provided to you without regard to your individual objectives, financial situation or needs. It is not specific advice for any particular investor/insurance company and it is not intended to be passed on or relied upon by any person. Before making any decision about the general advice provided, you should consider the appropriateness of the general advice presented in this email, having regard to your personal objectives, financial situation and needs.
Prefect Advisory strongly advises that you review the specific Product Disclosure Statement (PDS) and Target Market Determination (TMD) issued by the relevant underwriting insurer prior to making a final decision to purchase any insurance product. Every insurance provider enforces separate exclusions, waiting period rules, and definitions of disability.
Prefect Advisory is Authorized Representative (Number 1299877) of Consilium Advice Australia Pty Ltd (AFSL 246623).
