What life, TPD, trauma and income protection cover pay, what drives the premium, and the super, APRA and tax rules that apply in 2026.
Personal insurance in Australia comes in four main types. Life cover (death cover) pays a lump sum if you die or are diagnosed with a terminal illness. Total and permanent disability (TPD) cover pays a lump sum if illness or injury means you are unlikely ever to work again. Trauma cover pays a lump sum on diagnosis of a listed condition such as certain cancers, heart attack or stroke. Income protection pays a monthly benefit, usually up to 70% of your pre-disability income, while you cannot work.
Where you hold the cover matters as much as what it is. Cover through a super fund is paid for from your balance and is limited by superannuation law: trauma is not allowed, TPD must use an "any occupation" style test, and default cover is switched off for many under-25s, low-balance and inactive accounts unless you opt in. Retail policies held outside super cost you after-tax money, except income protection premiums, which are usually tax-deductible.
Start with the overview of life, TPD, trauma and income protection, then read the guides on cover in super versus retail, the opt-in rules, the 2021 income protection changes and tax deductions for premiums. Premiums in examples are illustrative, not market prices.
Costs, Cover Types and 2026 Rules
The APRA individual disability income insurance reforms explained: the end of agreed value, 70% income caps, 12-month income tests and stricter tests after two years.
Costs, Cover Types and 2026 Rules
When income protection premiums are tax-deductible, what is not deductible, how bundled and super policies are treated, and the real after-tax cost worked out.
Costs, Cover Types and 2026 Rules
Compare cover through your super fund with retail life, TPD and income protection policies on cost, definitions, tax, underwriting and who receives the payout.
Costs, Cover Types and 2026 Rules
What life, TPD, trauma and income protection cover pay, how premiums are set, how cover in super differs from retail policies, and the 2026 rules to check.
Costs, Cover Types and 2026 Rules
How Protecting Your Super and Putting Members' Interests First switch off default insurance in super, the exceptions, and how to opt in to keep cover.
Costs, Cover Types and 2026 Rules
How stepped and level premiums work for Australian life, TPD, trauma and income protection cover, with a 30-year illustrative cost comparison and break-even point.
Costs, Cover Types and 2026 Rules
How TPD definitions work in Australia, why own occupation cover is not allowed in super, activities of daily living tests, and what to check before you claim.
Costs, Cover Types and 2026 Rules
The factors that set an income protection premium, from age and occupation class to waiting period, benefit period and options, with an illustrative comparison.
