About the Income Protection Needs Calculator
Income protection insurance replaces part of your income if illness or injury stops you from working. Insurers in Australia typically cap the insurable benefit at around 70% of your gross income. This calculator gives a rough estimate of that insurable benefit, and how much of a gap remains once any other income during a claim (like a partner's income or existing cover) is taken into account.
How it works
- Insurable monthly benefit = gross monthly income × percentage of income to insure (default 70%, the standard maximum most Australian insurers apply).
- Net benefit needed = insurable monthly benefit minus any other monthly income you'd still receive during a claim, floored at zero.
Assumptions and behaviour
- The default 70% cap reflects the typical maximum insurable benefit used by Australian insurers, but exact caps and definitions of 'income' vary by insurer and policy.
- Other monthly income might include a partner's income, existing income protection cover, or other passive income you could rely on during a claim.
- Uses gross (pre-tax) income as the base, matching how most insurers define insurable income.
Limitations
- This is general information only, not personal financial advice. It doesn't consider your personal circumstances, existing cover, superannuation-held insurance, waiting periods, benefit periods, or occupation-specific loadings.
- Your actual insurable benefit depends entirely on the insurer's own income test — self-employed income, bonuses, and irregular income are often assessed differently.
- Speak to a licensed financial adviser before taking out, increasing, or changing income protection insurance.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
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