Income Protection insurance

Income Protection insurance protects what is probably your most valuable asset – your ability to earn a regular income.

Your income is worth protecting

You probably insure your home, its contents and your car. Yet your ability to earn a regular pay packet often gets overlooked in the insurance stakes.

This may be because we often think we won’t come in harm’s way. But a simple run around the park with the kids or a drive to the shops could see you experience an unexpected injury that could put you out of work for weeks – even months or years.

Your income is something you shouldn’t overlook – research shows that 77% of Australians aged between 45 and 64 don't have adequate levels of insurance*. Talk to us to make sure you and your loved ones are protected.

*Source: KPMG Underinsurance - Disbality Protection Gap in Australia Report, 2014.

That’s why Income Protection cover is so valuable

Income Protection insurance can help you continue to meet your day-to-day living expenses even if you're unable to work due to sickness or injury.

The monthly benefits can be used for costs such as rent or mortgage payments, bills and medical expenses, so you can have time to focus on your health and recovery.

As a rule, the payout from income protection insurance typically replaces up to 80% of your current income (including superannuation contributions) while you are unable to work due to sickness or injury. But the benefits can go beyond this.

Four key benefits

1. Rehabilitation benefits

Income protection insurance can do more than provide a monthly benefit if you're unable to work to your full capacity due to sickness or injury. You may also be entitled to rehabilitation benefits including reimbursement for the costs of rehabilitation programs, and expenses such as home or workplace modifications and equipment costs.

2. Cover tailored to suit your needs

You may be able to choose from a range of optional benefits such as cover for your children and protection for your superannuation contributions.

3. Available for stay-at-home mums and dads

BT Home Duties Income Protection insurance has been developed for stay-at-home parents. Don’t underestimate how much it could cost to replace the contribution made by a non-working spouse, including caring for your children and your home. The cost of child care alone can represent a significant financial burden.

4. Potential benefits at tax time

The premiums for Income Protection Insurance are normally tax deductible if you’re working, which helps to lower the overall cost. Tax is complex and you should consult your accountant or tax agent for advice.

Next: Business insurance – it’s smart business practice

Discover how business overheads insurance can play a valuable role protecting your enterprise and your financial wellbeing.

Contact a BT Wealth Consultant to discuss Income Protection insurance

Knowing which types of insurance to select depends on your circumstances. We explain what to look for.

When it comes time to make a decision about personal insurance, it’s hard to know where to start. We’ve identified some key things you may want to consider when it comes to your insurance if it is held inside super.

Discover the different types of insurance that can protect valuables like your home and contents, your car – and even your holiday plans.

A target market determination has been made for Protection Plans products. Please visit for any of our target market determinations.

The Insurer and Issuer is Westpac Life Insurance Services Limited ABN 31 003 149 157 AFSL 233728, except for Term Life as Superannuation, Income Protection as Superannuation and Income Protection Assured as Superannuation, issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 as Trustee of Retirement Wrap ABN 39 827 542 991. They are subsidiaries of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714, who does not guarantee the insurance. This information does not take into account your personal circumstances. Terms and conditions, and limitations and exclusions apply. Please read the Product Disclosure Statement to see if this insurance is right for you.

© Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714