How can you find the best Income Protection for you?
ProtectionArticle29 June 2026
| A quick summary for those in a hurry |
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| Income Protection (IP) insurance is a key strategy you can use to help safeguard your financial future against unexpected illness or injury. Zurich experts have 5 simple steps to help make sure your policy fits your needs. First, calculate your coverage needs – including the benefit and waiting periods. Second, review how you'd like to pay for your policy – including whether to fund it through Superannuation. Third, carefully check claim-critical definitions like "Primary Occupation" versus "Gainful Occupation". Finally, look beyond the price tag by choosing an insurer who offers other built-in benefits. For an even clearer picture talk to a financial adviser. |
Whether you're a full-time employee in Sydney or running your own small business in Perth, your ability to earn an income is your biggest financial asset. If an illness or injury stops you from working, everything is affected. It's the risk too few people take steps to manage.
Income protection (or IP) insurance can help. IP pays a monthly benefit to help keep your life on track. It can provide you with added security, knowing unexpected events are less likely to damage your lifestyle.
We asked the experts at Zurich for some simple tips to finding the best policy for your needs.
Start with these 5 simple steps
Step 1: Decide what you actually need
Before seeking out quotes, take a moment to understand your current situation and what you really need from IP. Specifically:
- Your Salary: Income Protection insurance will cover 70% of your salary if you're an employee. Or, if you're self-employed it will generally cover 70% of your share of the business' profits from your personal effort (that's minus the business expenses involved in making your income).
- Your Waiting Period: This is the time between when a doctor decides you're unable to work and when you can start receiving benefits. Common waiting periods are 30, 60, or 90 days. Choosing a longer waiting period is a way to lower your premiums.
- Your Benefit Period: Decide how long you think you will need your payments to last. You can choose short-term cover (e.g., 2 or 5 years) or long-term cover.
An easy way to reduce your income protection premiums is to choose a longer waiting period. If you think IP is for the worst-case scenario then set your waiting period at the maximum: With Zurich IP that's 90 days."
Step 2: Review how you'd like to pay for your policy
How you pay for your IP cover matters just as much as what it protects. You have two main options:
- Pay from your superannuation: This can have short-term tax advantages and less impact on cashflow but must satisfy the strict superannuation laws.
- Pay from your pocket: This will have an impact on your cashflow but, importantly, may be tax deductible at the end of financial year.
It's strongly recommended to speak to a financial adviser if you're in any doubt about which payment method suits you best.
Step 3: Choose between 'variable' and 'variable age-stepped' premiums
Most insurers offer two types of premium:
- Variable premiums: often cost more initially but generally end up being cheaper in later years – an advantage if you expect to hold cover for many years.
- Variable Age-Stepped premiums: tend to start cheaper and increase as you get older – a great option if you need affordable cover now.
Step 4: Double-check what's covered and what's not
The Product Disclosure Statement (PDS) must clearly outline the details of your policy. It's here you'll find what's not covered – also known as 'exclusions'. You'll also have clarity on waiting and benefit periods – if you're prepared to wait longer your premium will often be lower. Plus, you'll know what your insurer means when they use terms like "total disability", "partial disability", injury and "sickness" – they are defined in the PDS.
Zurich's PDS are all publicly available at zurich.com.au/life-insurance/documents.
Step 5: Look beyond the price tag
The cheapest policy isn't always the best. Look for insurers with a strong track record of paying claims – for example, in 2025 Zurich paid over $1.3 billion in claims1. That's to 8,479 Aussies and their families. Many modern policies also offer excellent built-in benefits, such as rehabilitation support, mental health resources, and return-to-work programs.
Take the next step
It's always smart to talk to an independent financial adviser. They can look at your specific situation and help you find the perfect fit to protect your future.
Or, if you'd like a direct quote from Zurich, get a quote here.
This article has been prepared by Zurich Australia Limited ABN 92 000 010 195, AFSL 232510. This information is current as at 29 June 2026
