Income Protection Cost Calculator
Estimate the annual premium for income protection in Australia. It is the dearest of the personal covers because the chance of a claim is relatively high.
Your income protection details
Your estimate sits within the typical range.
A shorter waiting period before benefits start makes the policy noticeably dearer. If you have several months of emergency savings, a 90-day wait can cut the premium while you self-fund the gap.
Income protection typically replaces up to about 70% of your income if illness or injury stops you working. The waiting period (how long before benefits start) and the benefit period (how long they last) are the two biggest levers on the premium, so match them to your savings and your mortgage, not the maximum.
💰 Ways to save
- Extend your waiting period if you have emergency savings, because moving from a 30-day to a 90-day wait can meaningfully cut the premium and you simply self-fund the first few months.
- Check whether you hold default income protection inside super, because many funds include it, and holding duplicate cover wastes a premium every year.
- Match the benefit period to your real need rather than buying to age 65 by default, because a shorter benefit period is cheaper and may be enough if your mortgage and dependants will be sorted sooner.
- Premiums on income protection were historically tax-deductible when held outside super, so keep records and ask your accountant, as the deduction effectively reduces the real cost.
or from $15/week over 5 years , indicative finance
How we estimate this
Income protection is the most expensive of the personal covers in Australia in 2026 because the chance of claiming is relatively high. A professional in their forties on $100,000 might pay $1,500 to $3,500 a year, with white-collar office workers at the cheaper end and manual or high-risk occupations much dearer.
Pricing reviewed: June 2026.
Understanding income protection costs in Australia
Income protection is the most expensive of the personal covers in Australia in 2026 because the chance of claiming is relatively high. A professional in their forties on $100,000 might pay $1,500 to $3,500 a year, with white-collar office workers at the cheaper end and manual or high-risk occupations much dearer.
The premium scales with your income (benefits are usually capped at about 70% of it) and rises with age. The waiting period and benefit period are the biggest controllable levers: a longer wait and a shorter benefit period both cut the cost.
Frequently asked questions
How much does income protection cost in Australia?
A professional in their forties on $100,000 might pay $1,500 to $3,500 a year in 2026. Office-based white-collar workers pay less, while manual and high-risk occupations pay considerably more. The premium rises with age and with shorter waiting periods.
What does income protection pay?
It typically replaces up to about 70% of your income if illness or injury stops you working, paid monthly after a waiting period until you recover or the benefit period ends. The exact percentage, waiting period and benefit period are set in the policy and drive both the payout and the premium.
How can I make income protection cheaper?
Extend the waiting period (for example from 30 to 90 days) if you have emergency savings, choose a benefit period that matches your real need rather than the maximum, and check you are not already covered inside super. Each of these lowers the premium without leaving a meaningful gap for most people.
Is income protection tax-deductible?
When held outside super, income protection premiums have historically been tax-deductible, which effectively reduces the real cost. Cover inside super is treated differently. Keep your premium records and confirm the current treatment with your accountant, as the deduction can be worth a third or more of the premium.
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