There are two types of income protection insurance calculators you might look for:
- To calculate how much salary you can cover, or
- To figure out how much income protection would cost.
How much income protection insurance do I need?
First type of calculation is quite easy - you usually can cover up to 75% of your salary in Australia. There are slight variations between different policies and different providers however this is a good indicator what insurance companies cover. Multiply your yearly or monthly salary by 0.75 and you get the maximum amount you can get covered. To reduce the premiums you can apply for less cover, but you need to be sure it will be enough to pay your bills, mortgage and other commitments.
Try our simple income protection insurance calculator:
To see how much tax you should pay on your salary, please use our tax calculator
Why can you insure only 75% of your income? Income protection serves to replace your income to ensure you can maintain your lifestyle and pay your bills in the event that you can't work. The reason that you only receive 75% (in some cases 80%) of your income is that this reduction in income provides an incentive to return to work as soon as you can.
Calculate how much does Income Protection cost
The second type of calculation is not that easy. There’s more to income protection than just punching in some numbers, applying a pre-set series of formulas and hey presto, that’s how much income protection will cost for you.
Your age, sex, state you live in, BMI, smoking status, occupation, time you spend in the office vs on the road , whether you work FIFO or in the city, your medical history all affect the premium.
You also have to choose:
- waiting period - similar to an excess which is the time you need to be off work before you can make a claim if you get sick or injured;
- benefit period - this is the maximum length of time you will continue to receive 75% of your income in the event you are unable to work as a result of your sickness or injury;
- agreed or indemnity style policy - prove your income at the time of applying or at the time of claim.
Each insurance company treats pre-existing medical conditions in differing ways. If you had a pre-existing medical condition how would you select which company will give you the most favourable outcome?
Why income protection insurance calculators don't work?
Income protection insurance calculators don’t work because they are calculators, not people. Only people ask questions, discuss your options, and then provide you with accurate income protection insurance prices.
Here at LISA Group we can compare all major insurance companies in Australia and we can deliver the greatest savings on your insurance policy. Which income protection insurance calculator can do this?
So please enter your details into the form on this page and get income protection quotes adjusted to your personal situation from TOP-10 insurance companies in Australia...