Income Protection 'insurable income' definitions vary by insurer, particularly for components of earnings beyond base salary. For PAYG employees, base salary is usually fully insurable up to the 70% APRA cap. Regular bonuses, commissions, and overtime that have been received consistently — typically the average over the previous 12 to 24 months — are commonly included, though some insurers cap the bonus inclusion at a percentage of base salary or exclude it entirely depending on the policy. Single, exceptional bonuses (such as one-off retention payments) are usually excluded. For commission-based earners, the rolling 12-month average is the common benchmark. Investment income, rental income, partner income, and government payments are generally not treated as insurable. Self-employed earners typically have their net business income (after deductible business expenses but before personal income tax) treated as the insurable amount, which can be lower than gross drawings. The insurable definition becomes important at claim time — you may discover that the benefit paid is based on a smaller figure than your gross earnings if your contract included substantial bonus or commission components. Review the insurer's definition of insurable income in the PDS at quote time, particularly if your earnings vary year-on-year, and consider whether 'agreed value' or 'income-link' cover (where available) reduces the variability risk for your circumstances.