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Income protection

In case of illness or injury, income protection can make a big difference to you and your loved ones. It can pay up to 87%* of your salary, so you can keep paying the bills while you’re temporarily off work.

Jump on our free insurance calculator, or talk to one of our insurance specialistsAD2 to help determine how much you need, and how much it costs.

Income protection benefits

Income protection means you can focus on the things you love now, so you don’t have to worry about the 'what-ifs' for later.

 

No out-of-pocket expenses

Premiums are paid from your super, so your take-home pay isn’t reduced.

Cover that reflects your salary

Income protection can pay up to 87%* of your salary, so you can keep paying the bills while you’re temporarily off work.

Cover when you need it

Flexible waiting periods are available so you can have access to cash when you need it.

Long-term cover available

Choose how long you’ll receive benefits for - from 2 years, 5 years and even up to the age of 65.

How income protection works

Income protection can cover between 15% and 87%* of your normal monthly income.

If you make a successful claim, the insurer will work out your benefit by looking at your cover amount, your pre-disability income, other disability payments and the policy maximums.

Please refer to the Insurance Handbook for examples of claim calculations.

Income protection application options

You can get a quote and apply for income protection in three different ways. There is Basic Plus Cover, IP Express and Tailored income protection with full underwriting. Check out the premiums and what suits you with the following tabs.

You can also refer to the Insurance Handbook for more detail about these options.

 

Income protection cover as part of Basic Plus Cover

If you’ve never held income protection cover through your account with us, you may be able to apply for it as part of Basic Plus Cover, through your Member Online account.

This is a quick way to get income protection cover by answering only a few questions about your employment, health and lifestyle. Depending on your answers you may be referred for full underwriting where we may ask for more information about your employment, health and lifestyle.

Income protection cover as part of Basic Plus Cover is subject to maximum cover limits and specific waiting and benefit periods.

Get more options with IP Express

If you don’t have income protection with us, another way you can apply is through IP Express, through your Member Online account.

This is a quick way to get income protection cover by answering only a few questions about your employment, health and lifestyle. Depending on your answers you may be referred for full underwriting where we may ask for more information about your employment, health and lifestyle.

Income protection cover provided via IP Express is subject to maximum cover limits and specific waiting and benefit periods.

Tailored income protection cover with full underwriting

You can apply for income protection cover with full underwriting. This allows you to apply for more cover with a wider range of benefit periods and waiting periods. With full underwriting, you’ll be asked several questions, including some about your:

  • Employment
  • Health and lifestyle
  • Medical history
  • Current and past insurance


The insurer will decide:
 

  • If they can offer any cover
  • The cost of cover
  • If any special conditions will be applied

Next steps

Apply for income protection

If your income is suddenly impacted because you are temporarily off work due to an illness or injury, you might need help paying your living expenses.

You might need income protection cover if you:
 

  • have a mortgage or other debts
  • are self-employed or own a small business and don’t get paid sick leave
  • don’t have enough savings to cover your expenses.

Review your income protection

If you already have Income Protection cover, we recommend that you regularly review your cover to make sure it keeps up with any salary increases you receive.

You can apply for higher cover if you need to.

Super simple - your income protection questions answered

Sam is currently 40 years of age, earns $100,000 a year and has had income protection cover for the last ten years. Sam’s income protection currently covers 87%* of his salary which is equal to a benefit of $7,250 per month in the event he’s off work temporarily due to an injury or illness and needs to submit an income protection claim.

He’s also chosen a 30-day waiting period and cover for two years. The current cost of his income protection cover is $17.94 monthly, or $215.33** a year, paid directly from his super account. Following an untimely accident, Sam’s doctors have advised him that he can’t work for 12 months while he undergoes treatment and rehabilitation.

Sam decides to submit an income protection claim, and after waiting the 30-day waiting period, his claim is approved by the Insurer and his income protection benefit commences. The insurer pays 75% of the benefit as income (less any applicable tax) to Sam’s bank account, monthly in arrears, and the remaining amount is paid to Sam’s super account as a superannuation contribution. Sam is also kept regularly updated about the ongoing claims assessment process for the duration of his claim.

With income protection cover, Sam can confidently manage his bills and living expenses while he recovers from his accident, ensuring his financial security and peace of mind.

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You can apply for income protection cover if you have money in your super account and are:

  • An Australian resident
  • At least 15 but less than 65
  • Employed for at least 15 hours per week
  • At work on the date you apply


You can refer to the Insurance Handbook for more detail about applying for cover.

When you apply for income protection you choose:

How much you want to be insured for

Between 15% and 87%* of your normal gross (before-tax) monthly income. A limit of $40,000 per month applies.

If you receive other disability income because of your illness or injury, such as motor accident insurance or workers compensation, your income protection benefit may be reduced at claim time because of these payments. More information about how other payments may reduce your income protection benefit is available in the Insurance Handbook.

A waiting period

How long you’ll need to wait before you become eligible to claim after you become disabled. It’s important to know you won’t receive any income protection payments for the waiting period.

A benefit period

The maximum amount of time payments to you can continue while you’re disabled.

When you apply for income protection cover, you can choose a benefit period of either, 2 years, 5 years, or to age 65. While you are disabled, this is the maximum period of time you can get an income protection benefit paid to you. Depending on your circumstance, it may be less.

Your waiting period and benefit period options are shown below:

Scroll table horizontally on mobile

  Waiting period options
Benefit period 14 days 30 days 60 days 90 days
2 years
5 years Not available
To age 65 Not available


The longer the benefit period, the more your cover costs.

The cost of your income protection insurance comes out of your super balance, and is based on several factors including your:

  • Age
  • Cover amount
  • Insurance category
  • Waiting period
  • Benefit period


Plus any premium loadings the insurer applies.

In addition to your insurance premiums, we deduct an insurance administration fee. This fee is $1.85 per month and helps cover the cost of managing your insurance.

Calculate your insurance premium

There are 4 insurance categories that can be applied to your cover – the Professional category provides the lowest premium and premiums increase through the Low Risk, Medium Risk and High Risk insurance categories in that order.

Your insurance category is important. If you’re in a higher risk category than your work requires, you might be paying more for your cover than you should.

You can review your insurance category, and apply to change it if you need to, by logging into Member Online.

You can refer to the relevant Insurance Handbook for more detail about insurance categories.

Looking to apply for insurance, transfer or make changes to your existing cover? The easiest way to do this is by logging into Member Online.

Here are some handy links:

  1. Apply for or increase your insurance
  2. Change or cancel your insurance cover
  3. Life events cover
  4. Transfer your cover to Aware Super
  5. How to claim an income protection benefit


Use our free insurance calculator to help determine how much you need and how much it will cost:

Try insurance calculator

Talk to an expert – book an appointment

Talk to one of our insurance specialists to find the cover you need.AD2

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Explore other types of insurance

Total and permanent disablement (TPD) cover provides a lump sum payment if you’re unlikely to work again due to an illness or injury.

Death cover provides a lump sum payment if you die. This can help loved ones in time of need.

Need help?

* A maximum cover limit of $40,000 per month applies. Any amount paid above 75% is paid into your super account as a superannuation contribution.

**Based on the annual premium rate (before the tax deduction benefit) per $1,000 of Income Protection cover for a member with an age last birthday of 40, in the Professional insurance category and with a waiting period of 30 days and a benefit period of 2 years. This calculation does not include the $1.85 insurance administration fee. More information on how to calculate the cost of insurance cover is available in the Insurance Handbook.

[AD2] Members can get advice about their Aware Super accounts at no extra cost, or advice on their broader needs for a fee.