Business Insurance Online :: Articles

Who Needs Disability Insurance?

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

Who Needs Disability Insurance?

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

Sign in with Google to rate

0 Comments

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


Insurance News

Workers Compensation Reform Puts Employer Cover Back in Focus
Workers Compensation Reform Puts Employer Cover Back in Focus
16 Sep 2026: Paige Estritori
Renewed debate around proposed changes to the NSW workers compensation system is a timely reminder that employee injury cover is not a set-and-forget obligation for business owners. While the details of reform are still being scrutinised by government, regulators, unions, employers and insurers, the underlying issue is clear: claims costs, psychological injury trends and scheme sustainability are placing pressure on how workplace injury risk is funded and managed. - read more
Cyber Underinsurance Is Becoming a Bigger SME Risk
Cyber Underinsurance Is Becoming a Bigger SME Risk
09 Sep 2026: Paige Estritori
Fresh industry attention on cyber underinsurance is a timely reminder that many Australian small and medium businesses are still treating digital risk as an IT problem rather than a balance sheet risk. As more trading, payments, customer records, bookings and supplier relationships move online, a cyber incident can quickly become a cash flow, legal, operational and reputational event. - read more
Disaster Resilience Debate Puts SME Cover Back in Focus
Disaster Resilience Debate Puts SME Cover Back in Focus
02 Sep 2026: Paige Estritori
Fresh industry attention on disaster resilience is a timely reminder that Australian small and medium businesses cannot treat severe weather as an occasional inconvenience. The message emerging from the insurance sector is increasingly consistent: premiums, availability of cover and claims outcomes are being shaped not only by what a business owns, but by where it operates, how exposed it is, and what practical risk controls are in place. - read more
Why lithium-ion batteries are now a business insurance issue
Why lithium-ion batteries are now a business insurance issue
26 Aug 2026: Paige Estritori
Lithium-ion batteries are moving from a workplace convenience to a serious insurance consideration for Australian small and medium businesses. As more businesses rely on rechargeable tools, e-bikes, scooters, point-of-sale devices, backup power units and portable electronics, insurers are paying closer attention to how those items are stored, charged and managed. - read more
Storm claims surge shows why SMEs need to test their cover
Storm claims surge shows why SMEs need to test their cover
19 Aug 2026: Paige Estritori
Fresh industry updates on severe weather claims are a reminder that storm, flood and cyclone losses are no longer rare planning scenarios for Australian small and medium businesses. Claims linked to major weather systems affecting Queensland and New South Wales continue to move through insurer assessment, repair and settlement processes, with businesses facing familiar pressure points: damaged premises, interrupted trading, ruined stock, delayed repairs and uncertainty about what is actually covered. - read more
Click for more Insurance News
Business Insurance Articles

5 Common Insurance Mistakes Startups Make and How to Avoid Them
5 Common Insurance Mistakes Startups Make and How to Avoid Them
Starting a new business is an exciting and challenging endeavor, particularly in the vibrant and innovative startup landscape of Australia. However, amidst the rush of ideas and the race to launch, many startups overlook the crucial aspect of insurance. Insurance is not merely an additional cost but a vital protective measure that safeguards your emerging business against unforeseen hurdles. - read more
Public Liability Insurance in Australia: Cover, Exclusions and Business Requirements
Public Liability Insurance in Australia: Cover, Exclusions and Business Requirements
Public liability insurance can help protect Australian businesses against third-party injury or property damage claims. Learn what it may cover, common exclusions, when it may be required and what to check before arranging cover. - read more
Avoiding Underinsurance: How to Adequately Cover Your Growing Business
Avoiding Underinsurance: How to Adequately Cover Your Growing Business
When it comes to protecting the vitality and financial health of a growing business, insurance is a keystone. Yet, amidst the day-to-day hustle of driving your business forward, it's surprisingly easy to overlook the adequacy of your insurance policies - a misstep that can lead to the perilous state of underinsurance. In this article, we will delve into the essential knowledge and strategies to ensure your business is sufficiently covered, shielding it from unexpected setbacks and losses. - read more
Financing Your Business: The Role of Loans and Insurance
Financing Your Business: The Role of Loans and Insurance
Starting a new business is an exciting journey filled with opportunities and challenges. One of the most important parts of planning for a new venture is understanding how financing and insurance can work together to support a stronger financial foundation. - read more
The Importance of Cyber Security: Protecting Your Small Business
The Importance of Cyber Security: Protecting Your Small Business
Cyber security refers to the practices and technologies designed to protect computers, networks, programs, and data from unauthorized access, attacks, or damage. It's a crucial aspect of modern business operations, and understanding its importance is vital for all businesses, especially small ones. - read more

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

Quick Links: | Business Insurance | Business Insurance Quotes | Commercial Insurance | Public Liability Insurance | Small Business Insurance | Professional Indemnity Insurance | Business Insurance Comparison | Cyber Insurance | Business Interruption Insurance | Business Insurance Australia | Workers Compensation Insurance
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.