The Essential Guide to Understanding Disability Insurance Needs

Who Needs Disability Insurance?

Why is disability insurance important for those who aren't financially independent?

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

If you are like most people on this planet, you are not financially free. You would not be able to stop working and still support yourself and your family from your financial resources. Your continued ability to work to earn an income would therefore be one of your greatest assets.

Your ability to work for a salary or wages would therefore be one of your greatest assets.

Have you insured this asset?

If disability suddenly stops you from being able to work, how would you earn an income?

How long would you survive without a paycheck?

If the situation described above is a cause for concern, you need disability income insurance.

You can become disabled either from an accident or for medical reasons.

One life insurance company defines disability as "the inability of the life assured to perform any part of any occupation in which he was engaged immediately before the onset of the incident

Further, the life assured must not be following any other gainful occupation"

Disability is often referred to in life insurance circles as the worse hazard, because if you become disabled: -

You stop earning salaries or wages,
Your life insurance policies will not pay a claim, since you didn't die,
Your illness

will consume a significant portion of available funds.

Here are a few facts on disability: -

Each year, 1 person in 8 will suffer disability
1/3 of all people between the ages of 30 and 64 will become disabled sometime in their lives
At age 32, the chance of being disabled for 90 days is 6.5 times greater than the chance of death
75% of disabilities are caused by an illness rather than an accident
Workers today are 3 times more likely to suffer a long-term disability than die during their working years
The likelihood of being disabled for more

than 3 months is greater than dying in any given year

As you can see, the risk of disability due to illness or injury is great.

The cost of not being prepared is severe. Why take the chance? Even substantial savings can run out quickly if it is your only source of financial support.

If you are like most people who need to work in exchange for money, there is a need to protect one of your most valuable assets, i.e. your ability to earn an income.

Disability income insurance should therefore, be an important part of your long-term financial security plans.

It can help to secure your dreams, lifestyle and income, regardless of your occupation or industry.

This valuable income replacement plan is available from your local life insurance companies.

Call your life insurance advisor or enquire online for more information on this useful long-term financial security plan.

Published: Sunday, 1st Aug 2021
Author: 151

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Why Repair Bottlenecks Matter for Farm Insurance Claims

02 Sep 2026: Paige Estritori

Fresh industry concern about repair delays after severe weather is highly relevant for Australian farms, where a damaged shed, washed-out access track or unavailable part can quickly interrupt day-to-day operations. While the wider insurance discussion often focuses on homes and commercial buildings, the same pressure points can be even more complex on rural properties because assets are spread out, specialist equipment is involved and local contractor availability may be limited. - read more

Insurance Tax Debate Puts Farm Premiums Back in Focus

26 Aug 2026: Paige Estritori

Renewed industry pressure to reduce insurance taxes has put affordability back in the spotlight for rural and regional Australia. The latest debate centres on the extra costs added to insurance through state-based duties, levies and other charges, which can make already expensive cover harder to maintain for households and businesses exposed to flood, bushfire, storm and cyclone risk. - read more

Why Claims Disputes Should Prompt a Farm Insurance Review

19 Aug 2026: Paige Estritori

Recent complaints data from the Australian Financial Complaints Authority has again highlighted a pressure point that matters to rural Australia: insurance claims can become difficult when expectations, policy wording and evidence do not line up. While the figures cover the wider insurance market rather than farms alone, the themes are highly relevant for agricultural businesses dealing with storm damage, fire losses, machinery failures, fencing repairs or interrupted operations. - read more

Wetter Weather Forecast Puts Rural Cover Under the Microscope

12 Aug 2026: Paige Estritori

Australia's latest seasonal weather signals have again pushed rainfall risk into the foreground for rural and regional businesses. While conditions vary sharply between districts, a wetter outlook for parts of the country is a useful reminder that risk planning should not wait until paddocks are already saturated, creek crossings are cut or machinery is bogged at harvest. - read more

Underinsurance Warning Lands at a Critical Time for Farms

04 Aug 2026: Paige Estritori

Fresh insurance industry concern about underinsurance is especially relevant for Australian farmers as rebuilding and replacement costs remain stubbornly high. While the issue is often discussed in relation to houses, the same pressure applies across rural assets: sheds, fencing, pumps, tanks, grain storage, livestock yards, irrigation equipment and machinery can all cost significantly more to replace than they did when a policy was first arranged. - read more

Why Climate Risk Is Back on the Farm Insurance Agenda

28 Jul 2026: Paige Estritori

Australia's general insurance sector has again put natural hazard resilience at the centre of the affordability debate, with fresh industry commentary warning that floods, bushfires, storms and cyclones are continuing to reshape how risk is priced. For farmers, this is not an abstract policy discussion. It goes directly to the cost and availability of farm insurance, particularly for properties with older buildings, exposed machinery, flood-prone access roads, boundary fencing, stored fodder or high-value livestock. - read more

Click for more Insurance News

Farm Insurance Articles

Financial Planning for Australian Farmers During Persistent Drought

Persistent drought can place sustained pressure on Australian farm income, cash flow, livestock management, crop production and long-term investment decisions. A practical drought financial plan can help farm owners assess risks, control costs, preserve flexibility and make more informed decisions during extended dry periods. - read more

Common Myths About Farm Insurance Debunked

Whether you're a seasoned farmer or just starting out, understanding farm insurance is crucial. It's more than just a safety net; it's a way to ensure that your farming business can withstand unforeseen challenges. By safeguarding your livelihood, farm insurance offers peace of mind amidst uncertainties. - read more

The Ultimate Guide to Affordable Farm Insurance for Australian Farmers

Welcome to 'The Ultimate Guide to Affordable Farm Insurance for Australian Farmers.' As stewards of the vast Australian countryside, farmers face an array of unique challenges and risks. Every day, they grapple with the forces of nature, the volatility of the markets, and the complexities of modern agricultural operations. - read more

Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm

As a farmer, you know that unexpected events can have a significant impact on your farm and your livelihood. Natural disasters, such as floods, fires, droughts, and storms, can occur at any time and have devastating consequences. That's why it's crucial to have a comprehensive disaster response plan in place to protect your property, assets, and, most importantly, your loved ones and livestock. - read more

The Farmer's Handbook to Quick and Effective Insurance Claims

Insurance is a vital part of safeguarding any farming operation. As a farmer, protecting your property, equipment, and livelihood from unexpected events like natural disasters, theft, or accidents is crucial. Adequate insurance coverage ensures that you can recover quickly from setbacks without enduring overwhelming financial strain. - read more

Income Protection Insurance for Hobby Farmers: What to Consider

Hobby farming may not be your main source of income, but it can still be financially important. If illness or injury prevents you from working, income protection insurance may help replace part of your income while you recover, depending on the policy terms. - read more

Need a Quote?

Start your free farm insurance quote comparison here.

Knowledgebase

Occupational Hazard:
A risk associated with the nature of a particular occupation, which may affect insurance premiums.