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

What Cyclone Alfred Recovery Teaches Farmers About Insurance

16 Sep 2026: Paige Estritori

Recent industry attention on insurance claims linked to ex-Tropical Cyclone Alfred is a timely reminder that severe weather losses rarely stop at damaged buildings. For farms across storm and flood-exposed regions, the real cost of an event can include cut access roads, damaged fencing, spoiled fodder, machinery downtime, livestock movement issues and weeks of operational disruption. - read more

Seasonal Bushfire Risk Puts Farm Cover Back in the Spotlight

09 Sep 2026: Paige Estritori

Australia’s latest seasonal bushfire outlook is a practical reminder that fire risk is not confined to the height of summer. For many farms, the exposure begins well before a catastrophic fire day is declared, as grass growth, drying winds, stored fodder, machinery movement and access limitations combine to create a more complex risk profile than a standard rural home policy can address. - read more

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

Click for more Insurance News

Farm Insurance Articles

Farm Succession Planning for Rural Australian Families

Farm succession is the planned transfer of farm ownership, management and knowledge from one generation to the next. For rural Australian families, it can involve complex family, legal, financial and operational decisions, so starting early and using a structured process can help reduce uncertainty. - 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

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

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

Farm Insurance, Workers Compensation and Contractor Risks in Australia

Australian farms that use employees, contractors, seasonal labour, family help or volunteers need to understand how workers compensation, public liability and contractor insurance can interact. This article explains the key insurance issues to review, why state and territory rules matter, and what farm operators should check before people start work. - read more

Need a Quote?

Start your free farm insurance quote comparison here.

Knowledgebase

Actuary:
A professional who analyzes the financial costs of risk and uncertainty using mathematics, statistics, and financial theory.