Income Protection Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Covering 60% of $60,000 pays $3,000 a month if you can’t work.
That covers your monthly costs.
Monthly benefit
$3,000
Your savings cover the waiting period. Benefits from a policy you pay for with after-tax money are tax-free.
Show the working
60,000 × 60% ÷ 12 = 3,000
Costs 3,000 − other income 0 − benefit = 0
By share of income covered
| Cover | A month | Gap a month |
|---|---|---|
| 40% | 2,000 | 1,000 |
| 50% | 2,500 | 500 |
| 60% | 3,000 | 0 |
Questions people ask
What is income protection?
Insurance that pays a monthly income, usually 50% to 75% of your earnings, if you can’t work through illness or injury, until you go back or the policy ends.
How much does it cost?
Often 1% to 2.5% of your income a year, more for risky jobs, older ages, short waiting periods and cover to 65 rather than for 2 years.
What is the waiting period?
How long you must be off before payments start: 4, 13, 26 or 52 weeks in the UK, 30 to 90 days in Australia. Match it to your sick pay and savings.
Updated 22 Oct 2026Source: National averages and published fee tables, checked October 2026Checked by AotobBenefit before any tax; typical cost is a rough range.Report an issue