Income Protection Insurance Broker: The Safety Net for Your Salary
Your ability to earn an income is likely your biggest financial asset. It is worth far more than your car or your house, yet it is often the least insured. If an accident or illness struck tomorrow—whether a back injury on the weekend or a sudden diagnosis like cancer—and you couldn’t work for six months, how long would your savings last?
For most Australians, the answer is terrifyingly short.
At Assurance Life Pro, we believe your lifestyle shouldn’t collapse just because your health does. As your dedicated Income protection insurance broker, we specialise in protecting your cash flow. We don’t just sell policies; we structure tax-effective financial lifelines. We help you compare income protection insurance options from Australia’s top insurers to find coverage that pays you a monthly salary when you need it most, ensuring the mortgage gets paid and food stays on the table.
What Is Income Protection? (And Why Savings Aren't Enough)
Income Protection (also known as Salary Continuance) is designed to replace up to 75% of your gross monthly income if you are unable to work due to sickness or injury.
It is distinct from “WorkCover,” which only covers you for accidents at work. Income Protection covers you 24 hours a day, 7 days a week, worldwide. Whether you fall off a ladder at home, get injured playing sport, or suffer a medical episode like a heart attack, this policy steps in to pay your wages while you focus on recovery.
Who Needs an Income Protection Broker?
If you rely on your income to pay bills, you need cover. However, three specific groups benefit most from a broker’s advice:
Self-Employed & Contractors
If you are a sole trader or contractor, you likely have no sick leave, no annual leave, and no WorkCover. If you don’t work, the money stops immediately. An income protection broker is essential here. We can help you navigate “Agreed Value” contracts (see below) which provide certainty of payout, regardless of whether your business had a bad month just before you got sick.
Employees with Mortgages & Families
Even if you have sick leave, it rarely lasts more than a few weeks. Income protection is designed for the long haul—paying you for 2 years, 5 years, or even up to age 65. If you have a mortgage, this insurance is the only thing preventing a forced sale of your home during a long-term illness.
High-Income Earners (Medical & Legal Professionals)
For doctors, lawyers, and executives, standard policies cap out. We access specialist “Executive” policies that offer higher monthly benefit limits (e.g., $30,000+ per month) and specific definitions that protect you if you can’t perform the specialised duties of your role, not just general work.
Key Benefits: Why "Agreed Value" Matters
When you compare income protection insurance, the definition of income is critical.
Indemnity Value: Most online and Superannuation policies use this. They look at what you earned in the 12 months before the claim. If you had a bad year or took time off, your payout shrinks.
Agreed Value: This is a broker-specialty. We prove your income when you apply. The monthly payout is locked in. If your income drops later, or you take a sabbatical, and then you get sick, you still get the higher, agreed amount. This provides total certainty.
The Broker Difference: Retail Policies vs. Superannuation
Many people assume the default cover in their Super fund is sufficient. Often, it is “junk” cover.
Super Policies: Often have “Any Occupation” definitions (meaning they won’t pay if you can do any job, like flipping burgers, even if you are a surgeon). They are also not guaranteed renewable—the insurer can cancel them.
Retail (Broker) Policies: Have “Own Occupation” definitions (paying you if you can’t do your specific job). They are contractually guaranteed—the insurer can never cancel your policy as long as you pay premiums.
The Process: Securing Your Financial Future
We make the complex simple:
Financial Review: We assess your income, expenses, and debts to calculate the monthly benefit you need (e.g., $6,000/month).
Structuring: We advise on Waiting Periods (e.g., 30 days vs 90 days) to lower your premium.
Market Comparison: We compare quotes from insurers like TAL, NEOS, Zurich, and AIA.
Application: We manage the paperwork and tele-underwriting calls.
Placement: Your safety net is active.
Eligibility & Application Steps
To be eligible, you generally need to work at least 20 hours per week and be an Australian resident. Application steps:
Proof of Income: Tax returns for self-employed; payslips for employees.
Medical History: A standard health questionnaire.
Occupation Class: Telling us exactly what you do (e.g., “Supervisor” vs “Manual Labour”) affects the price significantly.
Your income pays for your life. Don’t leave it unprotected.
FAQs on Income protection insurance broker
Is Income Protection tax deductible?
Yes. This is one of the few personal insurances that is generally 100% tax-deductible for individuals. Because the payout is treated as taxable income (like a salary), the ATO allows you to claim the premiums as a tax deduction each year. This effectively reduces the cost of the policy by your marginal tax rate (e.g., if you are in the 37% tax bracket, you get 37% of the cost back).
What is a "Waiting Period" and how do I choose?
The Waiting Period is the time you must be off work before payments start. Common options are 14, 30, 60, or 90 days.
Broker Tip: The longer the wait, the cheaper the premium. If you have 3 months of savings or sick leave, choosing a 90-day waiting period can slash your premium by up to 40% compared to a 30-day wait. We help you find the sweet spot.
Does this cover me if I get fired (Redundancy)?
No. Standard Income Protection covers medical inability to work (sickness/injury). It does not cover involuntary unemployment or redundancy. There are separate, niche "Redundancy Insurance" policies, but they are rare and expensive. Income Protection is strictly about your health.
How long will the policy pay me for? (Benefit Period)?
You can choose a "Benefit Period" of 2 years, 5 years, or "To Age 65."
2 Years: Cheaper, but risky. If you have a permanent accident, payments stop after 24 months.
To Age 65: The gold standard. It pays you until retirement age if you can never work again. As your income protection broker, we almost always recommend "To Age 65" for main income earners.
What if I have a pre-existing condition?
You can still apply. We must disclose it to the insurer. They will usually do one of three things:
Cover you fully (if it was minor/long ago).
Apply an "Exclusion" (cover you for everything except that specific back injury).
Apply a "Loading" (charge a slightly higher premium). We negotiate with underwriters to get the best outcome so you are still covered for everything else (cancer, stroke, car accidents, etc.).