How Much Does Income Protection Cost in Australia? (2026)
An overview of how much income protection costs in Australia in 2026, including average Income Protection rates by age, gender and amount for some of Australia's top insurers.
When you're asking "How much is income protection per month?", the answer can be hard to find! Premiums vary widely depending on a number of factors - including your age, health, occupation and more, so the answer is often the unhelpful “it depends.”
That's why we've built this premium guide—to show real numbers, factors that affect your pricing, and tools to help you compare quickly.
💼 Income Protection Insurance - Average Premiums (2026)
Income protection replaces part of your income if you're unable to work due to illness or injury. Your premium depends on your age, occupation, benefit structure, and lifestyle.
Quick answer: Income Protection in Australia typically costs between $30-$450+ per month, depending on age, occupation, cover amount, smoking status, waiting and benefit periods and policy type.
Protecting your income is one part of the picture. You may also want to understand Life Insurance costs, especially if you have dependants. see our guide to Life Insurance costs in Australia .
| Age Band | Male Non-Smoker | Male Smoker | Female Non-Smoker | Female Smoker |
|---|---|---|---|---|
| 25-29 | $30 | $42 | $42 | $59 |
| 30-34 | $31 | $43 | $44 | $60 |
| 35-39 | $33 | $46 | $46 | $65 |
| 40-44 | $36 | $51 | $51 | $73 |
| 45-49 | $48 | $68 | $69 | $98 |
| 50-54 | $79 | $111 | $114 | $162 |
| 55-59 | $131 | $186 | $185 | $263 |
Based on clerical worker: $6,000 monthly benefit, 2-year benefit period, 2-month waiting period. As at 2 January 2026.
Want a personalised estimate? Try this quick calculator.
🧠 What Changes Income Protection Costs?
| Factor | Impact on Premiums |
|---|---|
| 🕒 Age | Older = higher cost |
| 🚬 Smoking | Adds 30–100% depending on product |
| 🚻 Gender | Males pay more for Life; females for Income Protection |
| 👷 Occupation | Riskier roles increase income protection costs |
| 📊 Premium Type | Variable vs Age-Stepped changes long-term costs |
| ⏳ Benefit/Wait Period | Longer benefit periods or shorter waiting periods = higher costs |
🔁 Variable Age Stepped vs Variable Premiums - Which Is Cheaper?
When choosing Income Protection Cover, you'll need to decide between Variable Age-Stepped and Variable premiums. Yeah, we know - helpful naming! What that means is:
- ➤Variable Age Stepped: Starts cheaper, but increases each year as you age.
- ➤Variable: Starts higher, but stay largely the same. You should note it can increase by CPI or through insurer premium changes.
🧠 Tip: If you plan to keep your policy more than 10 years, level premiums can be more cost-effective.
This is the average projection analysis we did over a 10-year period.
🚭 Why Smoking Impacts Income Protection Costs
Smoking is a major health risk — and insurers price that risk in. On average, smokers pay: 💸30-50% more for income protection
If you've been smoke-free for 12 months, many insurers will reclassify you as a non-smoker — unlocking significant premium savings.
🏷️ Why Comparing Income Protection Policies Can Save You Thousands
One of the most important cost insights? Income Protection prices vary massively between insurers. For the same person and cover we found an average 50% premium difference between the cheapest and most expensive providers.
That's why it's critical to compare quotes—not just for the lowest price, but for the best value in terms of cover, exclusions, and claims experience.
Frequently Asked Questions
✅ Summary: Key takeaways for 2026
- Smokers pay up to double the premium.
- Insurance gets expensive from age 45+.
- Stepped vs. level premiums impact long-term pricing.
- Comparing insurers can cut your costs by 50%.
- Occupation and benefit structures affect Income Protection premiums.