Can I have multiple Income Protection policies with different insurers?

While technically you can hold multiple Income Protection policies with different insurers, there are strict limits on how much total coverage you can have, and claiming from multiple policies simultaneously is complex. Australian insurers impose maximum benefit limits, typically 70-85% of your gross income across all policies combined, to prevent you from being financially better off when disabled than when working. When you apply for a new policy, you must disclose any existing coverage, and the new insurer will only approve coverage up to the allowable limit minus your existing coverage. For example, if you earn $100,000 and already have $5,000 monthly coverage (60% of gross income), a second insurer will only offer approximately $2,000-$2,500 additional monthly coverage to reach the 70-75% limit. If you claim on multiple policies without proper disclosure, insurers will coordinate benefits and may each pay a proportionate share rather than the full benefit amounts. This is called 'contribution' or 'coordination of benefits' and is included in all IP policies. Having multiple policies can occasionally be beneficial for specific situations - perhaps one policy through super (cheaper but limited) and another retail policy (comprehensive coverage), or if you have specific additional coverage like business expenses insurance. However, you'll pay multiple sets of premiums, policy fees, and administrative charges, which can make it less cost-effective than a single comprehensive policy. Always disclose existing coverage when applying, as non-disclosure can void all your policies when you need them most. Most people are better served by one well-structured policy with appropriate benefit levels.