Most Income Protection policies in Australia will cover between 70% and 85% of your pre-disability income, with 75% being the most common level. The reason you cannot insure 100% of your income is to provide an incentive for you to return to work when you're able. Insurers want to avoid creating a situation where you're financially better off not working. The percentage you can insure may also depend on your income level, with higher earners sometimes limited to lower percentages. For example, you might be able to insure 75% of income up to $10,000 per month, then 50% of income above that threshold. It's important to note that the percentage applies to your gross income before tax, though benefits are generally paid tax-free if you've paid premiums from after-tax dollars. Super fund IP policies may have different structures, often providing lower percentages (around 70%) as premiums are paid from pre-tax contributions.