According to Plan For Life figures reported in the latest industry update, individual income protection new business rose by 8.3% across the 2025 calendar year. Individual lump sum insurance also increased, up 6.7%, although total risk new business was lower overall as group risk sales returned to more typical levels after earlier movements.
For income insurance customers, the result is important because it shows demand returning in a market that has spent recent years dealing with affordability concerns, tighter product settings, claims pressure and adviser capacity challenges. It also extends a broader theme seen across recent life insurance news: Australians are increasingly aware of the gap between everyday living costs and the financial shock that can follow time away from work.
The strongest income protection sales growth was reported among several insurers, including ClearView Wealth, NobleOak, AIA Australia and Zurich. That does not automatically mean any one provider is the best fit for a particular worker. Rather, it highlights that competition remains active and that product design, underwriting appetite and distribution channels continue to shift.
For employees, sole traders, contractors and gig workers, the practical takeaway is to review cover in the context of real income, household expenses and existing safety nets. A policy that looks affordable on premium alone may still fall short if the waiting period is too long, the benefit period is too short, or the definition of disability does not match how your occupation actually works.
Self-employed Australians should pay particular attention to how income is verified, especially where earnings fluctuate, business expenses are high or taxable income differs from cashflow. This is where working with a broker or adviser can help clarify whether a policy is likely to respond as expected at claim time.
The rebound in new business should also be read alongside recent stories about premium increases and mental health-related claims. Rising demand does not remove the need for careful comparison. It makes comparison more important, because two policies with similar headline benefits may handle exclusions, offsets, partial disability, rehabilitation support and superannuation contributions very differently.
If you already have income protection, avoid cancelling it before replacement cover is fully assessed and accepted. If you do not have cover, now may be a timely moment to consider income insurance options against your occupation, debts, dependants and emergency savings.
The renewed growth in individual income protection suggests Australians are not simply cutting back on protection during cost-of-living pressure. Many are becoming more selective, more risk-aware and more focused on keeping their income secure when life does not go to plan.
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