Is It Possible for Non-residents to Purchase Income Protection Insurance in Australia?

At a glance:

• Individuals who don’t meet the residency requirements of the Australian Taxation Office (ATO) are non-residents.
• Non-residents in Australia can purchase income protection insurance, provided they meet the insurer’s requirements.
• Non-residents should be aware of certain factors when considering income protection insurance, such as visa status, proof of income, eligibility criteria, and the validity of their cover.
• To make a formal purchase, they can apply through reliable insurers, such as Aspect Underwriting, after meeting specific requirements.

 

 

Living and working in Australia on a temporary visa comes with plenty of uncertainty, but protecting your income should not be one of them. If you’re earning locally and want peace of mind in case an illness or injury prevents you from working, income protection insurance may be an option for you.

While it’s not always straightforward for non-residents, you can still potentially qualify if you meet certain visa, income, and health criteria.

This guide explains everything you need to know: who’s eligible, how to apply, and what to watch out for. 

 

 

Who are considered non-residents in Australia?

 

Individuals who live in Australia but don’t meet the residency requirements of the Australian Taxation Office (ATO) are non-residents. According to the ATO, a resident is someone who:

• Has lived in Australia all their lives or moved to Australia to live permanently
• Has studied in the country for over six months as an overseas student
• During the current tax year, they have lived in Australia for at least six months and do not intend to return to their home overseas.

Therefore, a non-resident is someone who does not meet any of these criteria.

 

 

Is income protection insurance available for non-residents in Australia?

 

Yes, non-residents in Australia are eligible to purchase income protection insurance, but the process can be more challenging compared to residents.

Most insurers require non-residents to have a valid work visa or permanent residency to be eligible for cover. This is because income protection insurance is designed to provide financial assistance to employees and self-employed individuals who live and work in Australia on a long-term basis.

Additionally, proving a stable income may be more difficult for non-residents, especially if they do not hold a valid work visa or permanent residency. Without proof of consistent income in Australia, insurers may hesitate to approve coverage.

 

 

Requirements to Buy Income Protection Insurance in Australia as a Non-resident

 

To qualify for income protection in Australia as a non-resident, you’ll need to meet certain core criteria. While requirements vary between insurers, most will expect the following:

 

Temporary Visa Holders

 

To be eligible, you’ll typically need a valid work visa that allows you to earn income in Australia legally. Some of the most commonly accepted visa types include:

• Subclass 482 – Temporary Skill Shortage (TSS) visa: Allows skilled workers to work for an approved employer in Australia for up to four years, depending on the occupation.

• Subclass 491 – Skilled Work Regional (Provisional) visa: Grants skilled workers nominated by a regional government or a relative living in a regional area temporary residence for up to 5 years, with a pathway to permanent residency through the Subclass 191 visa.

• Subclass 494 – Skilled Employer Sponsored Regional (Provisional) visa: Allows employers in regional areas to sponsor skilled workers for up to five years, with a pathway to permanent residency after meeting certain criteria.

• Spouse Visas (e.g., Subclass 820 or 309): Holders of partner visas may also be eligible if they have full work rights and can demonstrate a steady income. The Subclass 820 is for those in Australia, while the Subclass 309 is for those applying from overseas.

Tourist and student visa holders are typically excluded, as these visas do not provide full work rights or indicate long-term income potential.

What matters most to insurers is whether you’re legally allowed to work and can show consistent earnings in Australia. Without that, getting approved for cover can be much harder.

 

Evidence of Income

 

To qualify for income protection insurance, a non-resident must demonstrate a regular source of income in Australia. This usually includes recent payslips, tax returns, or employment contracts. 

If you’re self-employed, financial statements or BAS (Business Activity Statements) may be requested. Without verifiable income, insurers may decline your application.

 

Health and Medical History

 

Non-residents applying for income protection insurance are often required to provide detailed health disclosures. This can include a history of past illnesses or injuries, current medical conditions, prescriptions, and any recent test results or specialist reports.

Depending on age or occupation, insurers may request additional medical reports for which you may need to undergo examinations. Pre-existing conditions can sometimes lead to exclusions or increase your premiums, which is why being upfront about your health history is so important. It helps avoid complications if you ever need to make a claim.

 

Age and Occupation

 

Your age and job type also play a role in determining your eligibility and your premium. Most policies cut off new applicants somewhere between 60 and 65 years of age. If you’re near that range, you might be offered shorter benefit periods or face higher premiums.

Certain jobs, especially those involving physical risk, like commercial fishing, underground mining, or aviation, may be excluded or only covered under strict conditions. If your work involves physical danger or demanding conditions, expect closer assessment and possibly higher premiums.

Therefore, non-residents who are most likely ineligible include visitors on short-term or tourist visas, student visa holders, individuals without provable income in Australia, applicants in excluded or high-risk professions, and those with significant pre-existing medical conditions.

Beyond these standard requirements, insurers often consider a few practical factors. 

• Many expect you to have lived and worked in Australia for 3 to 6 months, especially in the case of short-term visas. 
• An active Australian bank account is required because insurers typically do not pay benefits to accounts held outside of Australia. 
• You may need to be registered with the ATO and file a local income tax return to support income verification. 
• Employment status also matters. Casual workers face more limits, while contractors must show steady earnings. 
• Some insurers also assess your intention to stay, using factors such as visa type, job contracts, or family ties.

 

 

 

Factors to Consider When Buying Income Protection Insurance as Non-residents in Australia

 

Suppose a non-resident is eligible to purchase income protection insurance in Australia. In that case, they should carefully consider the following key factors to ensure the policy aligns with their needs and visa conditions.

 

Visa Validity and Policy Duration

 

Insurers generally require that your visa be valid for at least as long as the benefit period you’re applying for. If your visa is due to expire within a short timeframe, such as 6 or 12 months, insurers may limit your benefit period or decline cover altogether. 

This is because income protection provides support while you live and work in Australia, and a short visa may indicate that you won’t remain in the country long enough to justify long-term cover. Some insurers may also consider your visa’s pathway to permanent residency or renewal conditions when assessing your eligibility.

 

Coverage

 

Most income protection policies cover up to 70% (with some exceptions covering up to 85%) of your regular pre-tax income. 

This payout can help you meet essential expenses like rent or mortgage, utility bills, groceries, and any financial commitments, while you’re unable to work. 

Choosing the right level of cover ensures continuity and prevents financial strain during recovery.

 

Waiting Period

 

The waiting period is the time between when you become unable to work and when your income protection payments begin. It plays a key role in how soon you’ll receive financial support. 

Common options include 14, 30, 60, or 90 days. A shorter waiting period means quicker access to benefits, but typically results in higher premiums. Conversely, longer periods may reduce costs but delay payments.

 

Benefit Period

 

Once the waiting period ends, your policy begins to pay out for the duration of the benefit period. Longer benefit periods offer extended financial support, which is helpful if you’re dealing with a serious or prolonged illness, but they also tend to come with higher premiums. Shorter benefit periods are more affordable, but they may not provide sufficient coverage if you’re unable to work for an extended period.

 

Premiums

 

The amount you pay to maintain your income protection cover, your premium, can vary significantly depending on the insurer and your profile. Factors such as your age, occupation, income level, waiting period, and health history all play a role. It’s worth getting a few quotes to see what fits both your budget and your protection needs.

Many non-residents wonder if they’ll pay more for the same cover, and in some cases, the answer is yes. Premiums may be higher for non-residents due to additional perceived risks, such as visa uncertainty, a limited work history in Australia, or a higher likelihood of early departure from the country. 

Some providers also adjust their pricing or coverage terms based on your visa type or occupation. That’s why it helps to work with an insurer who’s experienced in supporting non-resident clients and can help you make sense of these variables.

 

Exclusions

 

The last thing you should do is understand any exclusions, what is covered, and what is outside the policy parameters.

Income protection insurance may exclude the following causes of injury or illness:

• Self-inflicted injuries
• Suicide attempt
• Engaging in criminal activity of any kind
• Drugs and alcohol consumption
• High-risk activities and sports

 

 

 

How Can I Buy Income Protection Insurance in Australia as a Non-resident?

 

If you’re a non-resident, you can still apply for income protection insurance through Aspect Underwriting, an Australian insurance provider that specialises in tailored cover.

You can begin by booking a consultation through the website. We will guide you through your situation, including your visa, income, and work setup, and help you explore your policy options.

If you’re happy to proceed, we’ll assist with gathering and submitting the necessary paperwork and documents. Once approved and premiums are paid, your policy will remain active for the agreed duration of cover.

 

Before applying, double-check the following:

• Your visa type is eligible and still valid.
• You’ve gathered proof of income and medical history.
• You understand how long your cover will last under your current visa.
• You’ve met any additional insurer-specific criteria.

 

Why Choose Aspect Underwriting For Income Protection?

Choosing the right provider is just as important as the policy itself. Here’s why many non-residents trust Aspect Underwriting:

• Specialist Expertise: With proven experience in insuring non-residents, Aspect helps you navigate visa-related requirements and find a policy that matches your employment and income profile.
• Comprehensive Cover: Policies can include both mental and physical health conditions, with up to 85% of your pre-disability income paid during eligible claims.
• Flexible Terms: Select a waiting period and benefit duration that align with your visa status, work situation, and financial comfort level.
• Reliable Support: Aspect’s claim process is responsive and informed, ready to assist when it matters most, with clear answers and no long delays.
• Competitive Pricing: Aspect balances quality cover with affordability, helping you protect your income without overpaying.

 

While income protection insurance for non-residents in Australia involves a few extra steps, it’s far from out of reach. If you hold a valid work visa, can verify your income, and meet basic health and residency conditions, you may be eligible for cover that protects your livelihood during unexpected setbacks.

Aspect Underwriting understands the unique needs of non-residents and can help you find a policy that aligns with your visa, job type, and financial goals. Whether you’re a contractor, skilled employee, or partner visa holder, we will walk you through the requirements and ensure you don’t miss any critical details.

Book a no-obligation call with an Aspect’s specialist today to check your eligibility and get a personalised quote.