The Essential Guide to Understanding Disability Insurance Needs

Who Needs Disability Insurance?

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

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

Insuring your most valuable asset

While many people would consider their home or their car to be their most valuable asset, it's your ability to earn an income that is most important in shaping your financial future. Statistically, two thirds of working Australians will suffer an injury or illness that will sideline them for 90 days or more. The majority of these people would not be able to pay their mortgage or meet car finance and other loan commitments without adequate income insurance.

... compare rates & options ...

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

Insurance News

NRMA's Departure from Farm Insurance: What It Means for Australian Farmers

05 Oct 2025: Paige Estritori

In a significant shift within the Australian insurance landscape, NRMA has announced its withdrawal from the farm insurance sector, ceasing the sale of new policies as of July 1, 2025. This decision leaves many farmers seeking reliable alternatives to safeguard their livelihoods. - read more

Diversification Drives New Insurance Needs for Australia's Small Farms

26 Sep 2025: Paige Estritori

In the evolving landscape of Australian agriculture, small commercial farms are increasingly diversifying their operations to enhance income and sustainability. This shift, while offering economic benefits, introduces new complexities in risk management and insurance coverage, presenting both challenges and opportunities for insurance brokers. - read more

Satellite Technology Revolutionizes Crop Insurance for Australian Farmers

26 Sep 2025: Paige Estritori

In a significant advancement for Australian agriculture, Insurance Facilitators (IF), a family-owned underwriting agency, has introduced a data-driven crop insurance solution leveraging satellite technology. This innovative approach aims to address longstanding challenges in the industry, including premium leakage and risk accumulation, by providing more accurate and efficient risk assessments. - read more

ASIC Takes Legal Action Against RACQ Insurance Over Misleading Premium Comparisons

25 Sep 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has initiated Federal Court proceedings against RACQ Insurance, a subsidiary of Insurance Australia Group (IAG), alleging that the insurer misled over 570,000 customers through deceptive premium comparison pricing in renewal notices issued between September 2019 and December 2024. - read more

Surge in Farm Impact-Related Claims Raises Safety Alarms

25 Sep 2025: Paige Estritori

WFI Insurance has reported a significant 44% increase in farm impact-related claims over the past year, marking the highest level in four years. This surge includes incidents such as vehicle crashes and crush injuries, with approximately 1,800 claims related to farm vehicle accidents, including those involving quad bikes and side-by-side vehicles (SSVs). Many of these incidents have resulted in severe injuries, including fractures and head trauma. - read more

Rising Insurance Premiums for Farm Machinery Amidst Increasing Extreme Weather Events

25 Sep 2025: Paige Estritori

Australian farmers are grappling with a significant rise in insurance premiums for farm machinery, driven by the increasing frequency and severity of extreme weather events. Some farmers have reported that their insurance bills have more than doubled over the past few years, with annual premiums exceeding $100,000. - read more

Click for more Insurance News

Farm Insurance Articles

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

Agribusiness Risk: Liability Issues Facing Australian Farmers Today

The agricultural sector in Australia carves a significant portion of the country's economy, contributing to its GDP and providing employment across rural and suburban areas. Thus, navigating the complexities of agribusiness is not just a matter of crop cultivation and livestock management, but also of understanding the intricate web of liability risks that come with the terrain. - 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

Investing in Cybersecurity: A Crucial Step for Sustainable Farming

Cybersecurity refers to the practice of protecting systems, networks, and programs from digital attacks. In the context of agriculture, it involves safeguarding the digital solutions and technologies that have become intrinsic to modern farming operations. As technological advancements continue to revolutionize the farming landscape, the importance of cybersecurity in securing farm data and operations has become more pronounced. - read more

5 Key Types of Farm Insurance Policies for Australian Farmers

As an Australian farmer, understanding the necessity of farm insurance is crucial to protecting your livelihood. The agricultural sector is inherently fraught with risks, ranging from natural disasters to the unpredictable market. Farm insurance serves as a vital safety net, safeguarding your farm's infrastructure, crops, livestock, and more. - read more

Livestock Insurance for Aussie Farmers: What You Need to Know

Livestock farming is a significant part of the Australian agriculture industry. As with any business, farmers face numerous risks such as disease, death, theft or extreme weather events, which could cause damage or loss to their livestock assets. Livestock insurance provides cover against these risks, ensuring that farmers are financially protected from any potential financial losses, which could devastate their livelihoods. - read more

Need a Quote?

Start your free farm insurance quote comparison here.

Knowledgebase

Exclusion:
Specific conditions or circumstances for which the insurance policy does not provide coverage.