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
Insuring your most valuable asset
Image for Insuring your most valuable assetWhile 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

Rate this article

Sign in with Google to rate

0 Comments

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


Insurance News

IAG Resolves $4 Billion Greensill Lawsuit
IAG Resolves $4 Billion Greensill Lawsuit
17 Jun 2026: Paige Estritori
Insurance Australia Group (IAG) has reached a confidential settlement in the $4 billion lawsuit initiated by Greensill Bank AG and its insolvency administrator. This legal action stemmed from disputes over insurance coverage related to Greensill's financial products. - read more
Decline in Market Share for Australian Insurers' Business Packages
Decline in Market Share for Australian Insurers' Business Packages
17 Jun 2026: Paige Estritori
A recent analysis by Macquarie has revealed a significant decline in the domestic business package market share held by Australian insurers, dropping to approximately 48% in the fiscal year 2025 from nearly 67% a decade ago. - read more
ACCC Halts IAG's Bid to Acquire RAC WA's Insurance Arm
ACCC Halts IAG's Bid to Acquire RAC WA's Insurance Arm
10 Jun 2026: Paige Estritori
The Australian Competition and Consumer Commission (ACCC) has recently opposed the proposed acquisition of RAC WA's insurance operations by Insurance Australia Group (IAG). This decision stems from concerns that the merger would significantly reduce competition within Western Australia's insurance sector, potentially leading to higher premiums and diminished service quality for consumers. - read more
BizCover and Zurich Collaborate to Enhance Professional Indemnity Insurance for SMEs
BizCover and Zurich Collaborate to Enhance Professional Indemnity Insurance for SMEs
10 Jun 2026: Paige Estritori
BizCover, an online business insurance platform, has expanded its professional indemnity (PI) insurance offerings through a new distribution agreement with Zurich Australia. This partnership enables small and medium-sized enterprises (SMEs) with annual revenues under $7.5 million to access Zurich's PI insurance directly via the BizCover website, with coverage limits of up to $10 million. - read more
Zurich Introduces AI-Powered Cyber Insurance Solution for Australian Businesses
Zurich Introduces AI-Powered Cyber Insurance Solution for Australian Businesses
03 Jun 2026: Paige Estritori
Zurich Financial Services Australia has unveiled 'Prime One', a cutting-edge cyber insurance product designed to bolster the digital resilience of Australian businesses. Developed in partnership with Cowbell, a specialist in adaptive cyber and specialty insurance solutions, 'Prime One' leverages artificial intelligence to streamline the underwriting process, offering rapid and tailored coverage. - read more
Click for more Insurance News
Business Insurance Articles

Must-Have Insurance Policies for Australian SMEs in 2025
Must-Have Insurance Policies for Australian SMEs in 2025
In today's rapidly evolving business environment, insurance has become an essential component for the survival and success of small to medium enterprises (SMEs). As businesses navigate through uncertainties, unexpected events can pose significant threats. Insurance not only provides a safety net but also conveys a sense of stability and trust to partners and customers. - read more
Cash Flow Management Strategies for Small Business Sustainability
Cash Flow Management Strategies for Small Business Sustainability
Understanding the ebbs and flows of your business finances is more than just knowing numbers; it's a vital component of your small business's longevity and success. In the ever-dynamic landscape of entrepreneurship, cash flow management emerges as a centerpiece in the grand puzzle of sustainability. Small businesses, with their limited resources, often face the pronounced challenge of maintaining a healthy financial heartbeat to thrive and grow. - read more
Common Insurance Mistakes Small Business Owners Should Avoid
Common Insurance Mistakes Small Business Owners Should Avoid
Running a small business in Australia comes with its unique set of challenges and risks. One crucial aspect that every small business owner must consider is liability insurance. Liability insurance is designed to protect businesses from various claims and lawsuits that can arise in the course of their operations. Whether it's a customer slipping and falling in a store or a disgruntled employee filing a lawsuit, having the right insurance can provide a financial safety net. - read more
10 Common Insurance Terms Every Business Owner Should Know
10 Common Insurance Terms Every Business Owner Should Know
As a business owner, understanding the ins and outs of insurance can feel like navigating a maze. The terminology alone can be daunting, yet it's crucial to grasp these concepts to make informed decisions about protecting your enterprise. - read more
Assessing the Insurance needs of your Australian Labour Hire firm
Assessing the Insurance needs of your Australian Labour Hire firm
As a labour hire firm, it is important to assess your insurance needs to protect your business from the risks it faces. Assessing your insurance needs involves identifying potential risks specific to your industry and taking steps to mitigate them. With the right coverage, you can protect your employees, clients, and business assets from unforeseeable circumstances, which could otherwise result in costly lawsuits or accidents. - read more

Knowledgebase
Insurance Claim:
Notification to an insurance company requesting payment of an amount due under the terms of the policy.

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) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, 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.