Income Protection Premium Changes April 2026 | Zurich & OnePath Cut Prices

Last week we looked at TPD premiums — and it wasn't great reading. Income protection is a different story.

Two of the major retail insurers have quietly cut their income protection premiums by around 14–15% across every age group in the scenario we looked at. Most of the rest of the market hasn't moved, which has resulted in the gap between the cheapest and most expensive insurer widening — and if you're not with the right one, you may be paying significantly more than you need to.

April 2026 repricing

What Changed and What Didn't

Insurer	Change since January 2026
Zurich	↓ –15% across all age bands
OnePath	↓ –13% to –14% across all age bands
TAL	↓ Some reductions in younger age bands
AIA, Encompass, MetLife, NEOS	— No change

Source: Keep Insurance quote engine. Male non-smoker, clerical occupation. Changes vary by gender and smoking status.

Live market data

What the Market Looks Like Now

Annual income protection premiums across major retail insurers, April 2026. Scenario: clerical worker · $4,000/month benefit · 5-year benefit period · 2-month waiting period · stepped premium · male non-smoker.

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Age band	TAL	AIA	Encompass	OnePath	MetLife	NEOS	Zurich	Cheapest
25–29	$384	$364	$335	$343	$461	$493	$296	Zurich
30–34	$377	$424	$349	$356	$461	$497	$301	Zurich
35–39	$421	$508	$395	$412	$465	$447	$355	Zurich
40–44	$472	$632	$470	$474	$514	$506	$392	Zurich
45–49	$638	$920	$646	$699	$714	$710	$584	Zurich
50–54	$993	$1,431	$1,004	$1,282	$1,117	$1,127	$1,104	Encompass
55–59	$1,617	$2,472	$1,728	$2,190	$1,926	$1,825	$1,695	TAL

Annual premiums. Source: Keep Insurance quote engine, April 2026.

Age band	TAL	AIA	Encompass	OnePath	MetLife	NEOS	Zurich
25–29	–2%	—	—	–14%	—	—	–15%
30–34	–8%	—	—	–13%	—	—	–15%
35–39	–1%	—	—	–14%	—	—	–15%
40–44	—	—	—	–14%	—	—	–15%
45–49	—	—	—	–13%	—	—	–15%
50–54	—	—	—	–14%	—	—	–15%
55–59	—	—	—	–14%	—	—	–15%

Change vs January 2026 premiums. Male non-smoker, clerical occupation. Source: Keep Insurance quote engine.

Analysis

What the Data Tells Us

1. Zurich is the cheapest option across most age bands

After the April reductions, Zurich is the cheapest insurer from age 25 through to 49. At 50–54, Encompass edges ahead by a small margin. At 55–59, TAL takes the lead. But across the age range where most people are actively buying or reviewing income protection, Zurich is the standout on price.

2. The gap between cheapest and most expensive has widened

With Zurich and OnePath moving down while AIA, Encompass, MetLife, and NEOS haven't moved, the spread between cheapest and most expensive now sits at 50–70% across most age groups. Here's what that looks like in practice:

AIA

$632

per year

Zurich

$392

per year

Difference

$240

before cashback

Male, aged 40–44 · clerical · non-smoker

With Keep's 12.5% cashback, the effective Zurich cost drops to ~$343/year — a saving of $289/year, or around 46% compared to staying with AIA.

The cover is comparable. The price is not.

3. TAL made some adjustments — but only in younger bands

TAL reduced premiums modestly for younger age groups (–2% at 25–29, –8% at 30–34, –1% at 35–39 for this scenario), but premiums from 40 onwards were unchanged. If you're on a TAL policy, the April changes probably didn't affect you.

For existing policyholders

What This Means If You Already Have Income Protection

If your policy has been sitting untouched for a year or two, there's a real chance a comparable policy is now materially cheaper elsewhere.

Reviewing your income protection policy through Keep is straightforward — check your options across the market. If you're healthy it can make a lot of sense to move to a lower-cost insurer, and our cashback on the new policy means you're ahead from day one.

A few things worth knowing before you make any changes:

Underwriting

A new application means new underwriting. If your health has changed since you first applied, a condition covered under your current policy might not be covered under a new one. Make sure you secure any new cover before cancelling your existing cover.

Benefits can differ

Extras, partial disability definitions, own vs any occupation treatment — these vary between insurers and can matter at claim time. Look at the policy details, not just the price. In particular, if you have an agreed value policy, those are no longer available to new customers, so if you switch to a new insurer you will likely be moving to an indemnity product. It's worth understanding the difference before you switch.

For most people who are healthy and not expecting a claim, the maths often points clearly toward switching. But it's worth exploring your options.

Market context

Why Premiums Move

Insurers reprice income protection based on their own claims experience, reinsurance costs, and regulatory requirements. APRA has been closely involved in the income protection market since 2020 — requiring insurers to restructure policies in response to industry losses. The Zurich and OnePath reductions suggest their books are now performing better than their previous pricing assumed, and they're passing some of that back through to new policyholders.

It's also worth noting the direction is different to what we saw with TPD last month. Two product lines, two different claims stories, moving in opposite directions at the same time — a reminder that "life insurance" isn't one market. It's several, each moving on its own logic.

For more on how income protection premiums are structured and what drives your cost, see our income protection cost guide.

Takeaway

The Bottom Line

Pricing moves — sometimes materially — even when the cover doesn't change. If you haven't reviewed your income protection insurance in the last 12–18 months, there's a chance you're overpaying.

Frequently Asked Questions

Which income protection insurers reduced premiums in April 2026?

Zurich cut premiums by 15% across all age bands on the covers reviewed. OnePath cut by 13–14% across all age bands. TAL made small reductions in younger age bands only. AIA, Encompass, MetLife, and NEOS did not change their pricing.

Which insurer is cheapest for income protection right now?

Based on our April 2026 data, Zurich is cheapest from age 25 through to 49 for a male non-smoker in a clerical occupation. At 50–54, Encompass is marginally cheaper. At 55–59, TAL takes the lead. Use Keep's quote tool to compare for your own age, gender, and occupation.

Why did Zurich and OnePath cut their income protection premiums?

Insurers reprice based on their own claims experience and reinsurance costs. The reductions suggest both insurers' income protection books are now performing better than their previous pricing assumed, and they're passing some of that improvement through to new policyholders.

Should I switch my income protection policy to take advantage of lower prices?

For healthy people not expecting a claim, switching to a lower-cost insurer often makes financial sense — especially with Keep's 12.5% cashback on the new premium. But underwriting restarts, waiting periods reset, and policy features can differ. Get advice if your health has changed since you first took out cover.

How much cheaper is income protection through Keep?

Keep's 12.5% cashback applies to every premium, every year. For a male clerical worker aged 40–44, the effective Zurich cost after cashback is ~$343/year versus $632/year with AIA — a saving of $289/year for comparable cover.

Is the income protection market moving differently to TPD?

Yes — at the same time income protection premiums have fallen for some insurers, TPD premiums rose sharply with others. The two product lines have different claims histories and are repricing in opposite directions. See our TPD premium changes article for the full picture.

Figures are indicative only, based on specific scenarios. Premiums vary by occupation, health, structure and policy design. Always consider product features and suitability, not just price. Keep Insurance is a registered financial adviser — read our FSG before acting on this information.