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

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

Life Insurance Articles

Income Protection vs. Life Insurance: Why You Need Both

Insurance plays a crucial role in safeguarding our financial future. It serves as a safety net, ensuring that we can manage unexpected events without severely impacting our financial stability. For Australian adults, having the right types of insurance coverage is essential for peace of mind and financial security. - read more

Why Every Australian Entrepreneur Needs Income Protection Insurance

Entrepreneurship in Australia - a landscape overview: The allure of entrepreneurship in Australia is undeniable, with the promise of innovation, personal autonomy, and potentially limitless earnings. However, the path of an entrepreneur is often unpaved and unpredictable. Without the safety nets traditionally provided by corporate employment, Australian entrepreneurs must proactively safeguard their personal finances against the capricious winds of business fortune. - read more

Illness and Your Finances: Strategies for Continuous Income Flow

When illness strikes, the impact on your finances can be as significant as on your health. Maintaining continuous income flow during such times is crucial for financial stability. - read more

Income Protection Insurance vs. Total Permanent Disability: What’s the Difference?

When life throws unexpected challenges your way, being financially prepared can make all the difference. This is where Income Protection Insurance and Total Permanent Disability (TPD) Insurance come into play. These two types of insurance provide a crucial safety net, ensuring that you and your family remain financially stable even when you're unable to work due to illness or injury. - read more

How Income Protection Insurance Can Safeguard Your Financial Future

Income protection insurance is a type of insurance policy designed to replace a portion of your income if you are unable to work due to illness or injury. This financial safety net can help cover essential living expenses, such as mortgage repayments, utility bills, and daily costs, ensuring you maintain your standard of living during tough times. - read more

Insurance News

Surge in Mental Health Claims Challenges Australia's Income Protection Insurance

25 Dec 2025: Paige Estritori

Recent data from the Council of Australian Life Insurers (CALI) reveals a significant shift in the landscape of income protection insurance in Australia. Mental health conditions have emerged as the leading cause of total and permanent disability (TPD) claims, accounting for nearly one-third of all claims paid. In 2024 alone, insurers disbursed over $2.2 billion for retail mental health claims, a figure that has almost doubled compared to five years prior. - read more

Decline in Income Protection Premiums Reflects Market Adjustments in Australia

25 Dec 2025: Paige Estritori

Recent research from Rainmaker Information indicates a notable decrease in income protection insurance premiums across Australia. Direct income protection premiums have fallen by 12% for policies with a 30-day waiting period and 13% for those with a 90-day waiting period since 2024. Similarly, premiums for life products sold through advisers have decreased by 5%, with income protection premiums dropping by 7% for 30-day waiting periods and 5% for 90-day periods. - read more

Superannuation Insurance Extends Coverage to 6 Million More Australians

25 Dec 2025: Paige Estritori

New research from the Association of Superannuation Funds of Australia (ASFA) reveals that superannuation insurance now provides critical protection to over 6 million Australians who would otherwise be uninsured. This expansion has been achieved without impacting household spending, as the coverage is included within superannuation contributions. - read more

Click for more Insurance News

Start Here !

Apply now for your free Insurance assessment and price comparisons!