Income Protection Calculator
Calculate your income protection insurance needs. Estimate monthly benefits, premium costs, and find the right waiting period for your situation.
Your Income Details
$
$
Include mortgage/rent, bills, groceries, and essential living costs
Coverage Recommendation
Maximum Monthly Benefit
$5,312
75% of income
Recommended Benefit
$4,500
Based on expenses
Est. Monthly Premium
Indicative only
Annual Premium
Tax deductible
Waiting Period Savings Needed
During waiting period: $4,500
Emergency fund recommended: $13,500
Benefit vs Premium
Waiting Period Comparison
| Waiting Period | Est. Monthly | Savings Needed | Best For |
|---|
Understanding Income Protection
What It Covers
- - Illness or injury preventing work
- - Pays up to 75% of pre-tax income
- - Monthly payments until recovery
- - Mental health conditions (varies)
- - Partial disability benefits available
What It Doesn't Cover
- - Redundancy or unemployment
- - Pre-existing conditions (usually)
- - Self-inflicted injuries
- - War or terrorism
- - Criminal activities
Tax Benefits
Income protection premiums are generally tax-deductible when you pay personally (not through super). However, benefits received are taxable income. The net tax benefit depends on your marginal tax rate.
Choosing a Waiting Period
| Waiting Period | Premium Impact | Best Suited For |
|---|---|---|
| 14-30 days | Highest | Limited savings, self-employed with no sick leave |
| 60 days | Medium | Some savings, employer sick leave available |
| 90 days | Lower | Good savings, generous employer leave |
| 180 days | Lowest | Strong emergency fund, long service leave |