How to make flexible income protection more affordable and accessible

Imagine waking up one day unable to work for months due to an unexpected injury or illness. Your income stops, but the bills don’t — rent or mortgage payments, groceries and school fees keep coming.

Enter: income protection. It can act as a financial safety net that provides monthly payments when you’re unable to work.

Many Australians either lack income protection or have outdated coverage , leaving them financially vulnerable should the unexpected occur. According to KPMG Australia’s Life Insurance Insights 2023 report, rising inflation, economic pressure and high claims payouts have all contributed to higher premiums.

Viviane Murphy, product and proposition lead at NobleOak, says insurers need to adapt and modernise income protection to offer flexible coverage that makes it accessible to people at every age and stage of life.

She points to McKinsey’s Global Insurance Report 2025 which identifies key factors driving the demand for adaptable policies, including an aging population, the rise of Gen X, the growing “silver” generation of wealth, shifting family structures, and the increase in dual-income and non-traditional households. 

Here’s what to look for when considering income protection that fits your needs and budget.

1. Insurance cover tailored by you

Insurance isn’t one-size-fits-all. An appropriate underwriting process ensures you get coverage to suit your needs, fair pricing and more reliable claims.

“Without full underwriting or complete medical disclosure, you could end up paying higher premiums for a fixed policy that doesn’t truly fit,” Murphy says.

Flexibility matters. Look for policies that let you adjust coverage as life evolves, whether it be through changing jobs, promotion, getting married, having a baby or buying a house. 

2. Adjustable waiting periods

Waiting periods — the time between when you stop working and when your benefits start — can affect your premiums. Standard options are 30 or 90 days, but some insurers offer 60-day and even two-year options. 

“Longer waiting periods generally mean lower premiums, making them a good choice if you have savings or other coverage such as insurance inside superannuation. A short waiting period might feel reassuring, but can be more expensive,” says Murphy.

3. Simpler, transparent policies 

Murphy notes that recent regulatory changes to income protection, aimed at improving sustainability, may have made policies more complex for many customers to understand. In NobleOak’s recent Customer Pulse Survey, the top five factors customers look for are value for cover, claims reputation, comprehensive product features, fully underwritten and excellent customer service.

“When choosing income protection, clear and consistent language and transparent coverage is key,” she says. “Look for policies with clear, consistent definitions of coverage that remain consistent throughout the claim period, as this removes ambiguity and ensures you know exactly what you’re covered for should you need to claim.” 

Murphy also recommends understanding the premium structure and how it changes over time alongside your budget and financial needs. “Look for premium structures that are fair, transparent and easy to understand,” she says.

4. Individualised rehabilitation benefits

Bouncing back from an illness or injury often requires more than just medical care. It may also require therapy, vocational training or career counselling to help you regain your independence.

Traditional income protection cover offers a single, fixed rehabilitation benefit, which can be limiting. 

“A broader range of rehabilitation benefits allows people to choose a recovery path that suits them — whether through their own program, vocational retraining or a customised approach,” Murphy explains.

5. Flexible benefit period options

When it comes to income protection, there are several benefit period options to choose from — including short-term, one-year, two-year and five-year plans.

Long-term income-protection policies, typically lasting until age 65, offer security but come with higher costs. Murphy suggests reviewing benefit periods depending on your life stage and needs.

CPA members are entitled to lifetime discounts on Life and Income Protection Insurance from NobleOak. Get a quote here. 

 

^{Important information: Please note, cover is available to Australian residents only. NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302 (NobleOak Life) issues the products. T&Cs apply. CPA discounts information on site.} 

^{The information contained in this document is of a general nature only and does not take into consideration your objectives, financial situation or needs. Before making a decision to purchase or continue with a product you should read the relevant Product Disclosure Statement (PDS), Target Market Determination (TMD) and Financial Services Guide (FSG). If you are considering replacing an existing life insurance policy you should consider your circumstances, including continuing the existing cover until the replacement policy is issued and cover confirmed.} 

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