Life Insurance

What’s the difference between Life Insurance and Income Protection?

1 March 2022

Life Insurance pays a lump sum to your family or loved ones if you become terminally ill or pass away. Income Protection Insurance pays you a monthly benefit if you’re unable to work due to injury or illness.

Depending on your circumstances, you may find that having one or the other, or a combination of both, could be beneficial for you.

What is Life Insurance?

Life Insurance offers a financial safety net for your family if you pass away or are diagnosed with a terminal illness. Once you take out your cover you’ll pay a regular premium to maintain it, and if you or your family need to make a claim, a lump sum will be paid out.

If you’re the sole income provider for your family, you may find it helpful to consider Life Insurance. Suncorp Life Insurance offers lump sum payments between $100,000 and $1.5 million, so your family can maintain their lifestyle if something happens to you. You may also be eligible for an early payout of $10,000 for funeral costs.

Try our interactive calculator to estimate how much cover might be right for you.

Get a Life Insurance Quote

What is Income Protection Insurance?

It’s a form of insurance that covers up to 75% of your income, calculated based on your last 12 months’ pay, if you become injured or sick and are unable to work. To be eligible, you need to be employed for more than 20 hours per week.

Like Life Insurance, you pay a regular premium. In the event that you need to make a claim, you’ll receive a monthly payment for an amount of time that you nominate. For example, Suncorp Insurance offers payment periods of 6, 12, 24, or 60 months. You nominate your benefit period when purchasing Life Insurance.

Whether you’re supporting yourself or your loved ones, Suncorp’s Income Protection Insurance may help you to keep your life on track if you can’t work because of injury or illness.

Get an Income Protection Insurance quote

Differences between Life Insurance and Income Protection

Here are the key differences between Suncorp’s Life Insurance and Income Protection Insurance:

How is it paid out?

When is it paid out?

How much cover can you choose?

Who can purchase a policy?

What is the claim waiting period?

Optional covers

What's not covered?

Life Insurance

In one lump sum.

If you become terminally ill or pass away.

Up to a maximum of $1.5 million.

Australian residents aged 18-65 who meet specified medical checks.

In accordance with your policy and circumstances.

Major Illness Cover and Cancer Cover.

Intentional self-inflicted acts, claims outside special terms and if you’re in a country with a travel warning.

Income Protection Insurance

Monthly, for up to five years.

If you become injured or sick and are unable to work.

Up to $10,000 a month or 75% of your income (this amount increases annually in line with inflation).

Australian residents aged 18-60.

Your choice of a 14, 28, 60 or 90 day waiting period once you’ve lodged a claim.

Accidental Injury Benefit and Cover for pre-existing medical and mental health conditions (subject to medical checks).

Dangerous sports and occupations, and back pain for claims of less than 90 days in duration.

For the most up-to-date information about each policy, read the Product Disclosure Statement (PDS). You can also compare them with our quick guide or get in touch with one of our friendly insurance specialists.


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Suncorp Life Insurance products, other than in some circumstances the Redundancy Benefit, is provided by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL is not part of the Suncorp Group. TAL uses the Suncorp brand (part of the Suncorp Group) under license. Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017, AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Product, you must read the relevant Product Disclosure Statement. The Target Market Determination (TMD) for the product is available on our website.

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