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

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

What Allianzâ€™s Farm Cover Revamp Means for Farmers

21 Jul 2026: Paige Estritori

Allianz Australia has refreshed its farm pack insurance, with the updated product announced on 20 July 2026. For farmers and rural property owners, the significance is less about one insurer changing a product and more about what it signals across the broader farm insurance market: insurers are trying to make cover easier to understand while adjusting policy features to better match modern farming operations. - read more

Click for more Insurance News

Farm Insurance Articles

Farm Business Interruption Insurance and Loss of Income Cover Explained

Farm business interruption insurance may help protect farm income and cover certain extra costs when an insured event disrupts operations. This guide explains how it works, what it may cover, where it differs from personal income protection and crop insurance, and what to check before relying on it. - 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

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

What You Need to Know About Crop Insurance for Your Farm

Crop farming carries risks that are often outside a farmer's control. Weather events, pests, crop failure and market changes can all affect production and farm income. Crop insurance is designed to provide a financial safety net when insured crops are damaged, destroyed or produce less than expected, helping farmers manage the business impact of an adverse season. - read more

Income Protection for Farmers: Ensuring Stability Through Tough Times

The world of farming is one filled with uncertainties. Weather conditions, market prices, and various other factors can create a highly volatile income stream for those within the agricultural sector. This unpredictability can lead to financial instability that impacts not only the farmers themselves but also their families and the larger rural community. - read more

Farm Property Insurance: Buildings, Sheds, Fencing and Fixed Assets Explained

Farm property insurance can help protect the fixed assets on rural land, including farm buildings, sheds, fencing, tanks, yards and other infrastructure. This guide explains what may be covered, how values are usually reviewed and what details to check before comparing policy options. - read more

Need a Quote?

Start your free farm insurance quote comparison here.

Knowledgebase

Trauma Insurance:
An insurance that pays a lump-sum amount on the diagnosis of one of several critical illnesses or events