Online Quote Income Protection Insurance   |    FAQ   |    Insurance Glossary   |    Case Studies   |    Contact Us   |    Testimonials   |   

Are All Income Protection Policies in Australia the Same?

Home >> Are All Income Protection Policies in Australia the Same?


There are various insurers in Australia offering income protection plans and each of these insurers offers income protection insurance policies meant to target a certain type of population. Although majority of the income protection plans offered in Australia have overlapping benefits, there are many differences in these policies.

• Based on the profession of the policy holder, income protection policies can be divided into three categories. The first type of contract is offered to white collared professionals who have low risk jobs. The second type of contract is offered to blue collared professionals or people who have high risk jobs. The third type of contract is offered to self employed individuals, sole traders and partners. Some insurers offer a fourth type of income protection policy that is ideal for people from all professions and such a policy usually offers basic benefits.

• Based on the benefits offered and cost, income protection policies can be divided into basic policies and comprehensive policies. Basic policies are cheap and have limitations where as comprehensive policies are slightly more expensive and offer maximum benefits. Basic policies can cost as less as $6 every week however, the cost of the selected policy will also depend on other factors such as the policy holder’s age and insured amount.

• Based on the type of the contract, income protection policies can be divided into two types of contracts. The first and cheaper type of contract is known as an indemnity agreement; where as the second type of contract is known as an agreed value contract. Agreed value contracts cost slightly more than indemnity contracts since the former offer a fixed compensation amount every month where as the latter does not guarantee that the policy holder will receive a fixed compensation payment every month. Based on the tenure of the policy, income protection plans can be divided into long term plans that have a benefit period of 5 years and a tenure of 10 years or more and short term plans that have a benefit period of 2 years and a tenure of 10 years or lesser.

Insurers in Australia offer many types of income protection insurance policies to help people from various professions get financial protection when they are ill or injured. Due to the variety offered buyers often have many options and can choose a policy that is ideal for them.

While choosing an income protection policy, buyers should always remember that although price may be one of the important deciding factors, the main deciding factor should be the benefits offered. Buyers who are purchasing a new policy also have various payment options and can choose when and how they want to make payments to the selected insurer.


Income Protection Insurance
Follow Us:


What do you want to do next ?

Income protection is a crucial part of any comprehensive financial plan. If you’d like some help customising the correct policy for you, or want to know more about the income protection insurance benefits.