General Advice Warning: The premium estimates below are indicative only, based on general market data and simplified assumptions. They do not constitute insurance quotes and do not take into account your individual health, detailed occupation, or specific insurer pricing. Actual premiums may be significantly higher or lower. Estimates are current as at May 2025 and may not reflect current market rates.
| Cover Type | Sum Insured | Est. Monthly Premium | Via Super? | Out of Pocket |
|---|
About these estimates
Premiums shown are indicative variable age-stepped (previously "stepped") monthly rates. These premiums are recalculated each year based on your age, so they will increase annually. The rates shown are based on general market data and will vary between insurers. Learn more about how premiums work →
Income Protection — Premium Comparison
Income protection premiums vary significantly depending on the waiting period and benefit period you choose. The table below shows indicative monthly premiums for a benefit of $5,000/month (approximately $85,000 gross annual income at 70%).
| Waiting Period | 2 Year Benefit | 5 Year Benefit | To Age 65 Benefit |
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Income protection & super
Income protection can be held inside super, but with trade-offs: benefits are limited and may have a maximum 5-year benefit period. Premiums held outside super are generally tax-deductible to the individual — for someone on a 37% marginal tax rate, a $200/month premium effectively costs around $126/month after the tax deduction. This tax benefit often makes holding IP outside super more cost-effective despite the cash flow impact.
Paying premiums via super — summary
Life Insurance
Can generally be held inside super. Premiums are paid from your super balance, reducing the direct cost to your take-home pay. However, premiums reduce your retirement savings. Tax on benefits paid from super can vary depending on the beneficiary's relationship to the deceased.
TPD Insurance
Can generally be held inside super. However, TPD held inside super is typically limited to an "any occupation" definition, which is narrower than the "own occupation" definition available outside super. Some people hold a base level of TPD inside super and top up with own-occupation TPD outside super.
Income Protection
Can be held inside super, but with limitations including a maximum benefit period (often 5 years) and benefits being assessable income. Premiums held outside super are generally tax-deductible to the individual, which can make outside-super more cost-effective on an after-tax basis.
Trauma Insurance
Cannot be held inside super. Trauma benefits are paid on diagnosis, not on disability or death, so they don't meet the superannuation conditions of release. Premiums must always be paid from personal cash flow. Premiums are generally not tax-deductible, but benefits are generally received tax-free.
Important: These estimates are for general illustrative purposes only. They are based on general market data and simplified assumptions as at May 2025. They do not constitute insurance quotes. Actual premiums will depend on your individual health, detailed occupation, lifestyle, and the specific insurer and product selected. Premiums can also vary significantly between insurers for the same level of cover. You should obtain a formal quote from an insurer or adviser before making any decisions.
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