Let's be really honest here. It doesn't take long to realise that life never quite works out just the way we planned.
To suggest it's unpredictable - is an understatement.
Call it chance, accident, fate or even serendipity; sh!t happens. Ok now that's out in the open and we're being honest, the point we're making is life just happens to us all and some things catch us all off guard. How we deal with hard times makes us human; how we plan for those potential hard times makes us successful. To Protect and Provide is the very essence of being human – and we think its one of our most endearing traits.
When hard times happen remember it's not personal - its just the statistical realities; its the numbers of life
How to plan for the reality of risks in our life
When hard times happen, you can't take it personally as if it's directed solely at you and your family or even your business. The statistical reality is that we all suffer ups and downs in ways we never expected. That's why we use life insurance products as a safety net, just in case.
- This insight is supported by big data and carefully kept statistics about the chance and probability of what happens to how many people.
- Small to medium business owners have additional risks when working with multiple people.
Obviously, everyone's circumstances are very different. People who drive cars are more at risk of being in a car accident than those who don't drive. If only life was that simple and predictable — it isn't. In 2016 sadly 176 pedestrians were killed in traffic accidents in Australia.
Time for a straightforward conversation about the numbers
We believe that the core to protecting and providing is having an honest understanding of the numbers of life so we can all have the opportunity to put a backup plan in place if something unexpected happens.
Now if you're the type of person who upon hearing this immediately reaches for an anecdotal story 'about a friend's grandmother who's still alive at 95 and still smoking a pack of unfiltered cigarettes a day'...so smoking really isn't a risk to anyone like we're told...' we probably aren't going to get along so please click here to go somewhere more appropriate.
The good news is (if you're still reading) you do have the opportunity to help prepare for many of life's ups and downs so that when the hard times arrive you, your family and even your business are able to survive them.
We all face the statistical risks of The Numbers of Life
Because these are statistical risks we all face, they cannot be avoided, merely managed with insurance. This also means they cannot be ignored.
What are the chances of you needing to claim on your personal insurance policy in Australia?
- 1 in 3 chance of needing to claim for Critical Illness insurance
- 1 in 4 chance of needing to claim for Income Protection insurance
- 1 in 10 chance of needing to claim for Life insurance or Terminal Illness
- 1 in 20 chance of needing to claim for Total and Permanent Disability (TPD) insurance
Jump to facts about:
- How many families lose a parent each day?
- What are the chances of you winning Lotto or Powerball?
- What are the leading causes of insurance claims?
- What are the risks of diabetes in Australia?
- What are the risks of doing business with multiple people?
What does this mean for Australian families?
In 2014 there were 11,237 unexpected deaths of married people between 15-64.
- This means 31 families per day unexpectedly lose a family member
- Given that 48% of families have at least 1 dependent child, this means 15 families every day with a dependent child, will lose a parent
What are the chances of you winning Lotto or Powerball?
- Chance of getting 6 winning Lotto numbers 1 in 8,145,060
- Chance of winning Powerball 1 in 76,767,600
What are the leading causes of insurance claims?
Of the 4 classes of personal insurance available, Life insurance, Total & Permanent Disability (TPD), Medical Crisis, and Income Protection, below are the leading reasons for insurance claims being made.
| The leading Causes of Insurance Claims | |||
|---|---|---|---|
| Death | Total Disability | Medical Crisis | Income Protection |
| Cancer | Musculoskeletal | Cancer | Musculoskeletal |
| Heart Disease | Cancer | Heart Disease | Mental Illness |
| Respiratory Disease | Mental Illness | Neurological Disorders | Cancer |
Diabetes in Australia
Here are the current undeniable health statistics for Australians
Today, 1 in every 4 hospital beds in Australia is taken by a diabetes-related condition, and 275 Australians develop diabetes every day.
- 56% are males, and
- 44% are females
- Around 92% of people with Type 2 diabetes were 45 years old or more
- 45% were 65 years or older
The additional risks for Business Owners working with multiple people in business
Frequently Asked Questions: The Numbers of Life
Why compare Lotto odds with insurance claim statistics?
It’s about Absolute Reality. Millions of Australians play Powerball with a 1 in 76,767,600 chance of winning, yet many of those same people ignore the 1 in 3 chance of needing a Critical Illness claim. We buy tickets for a dream that almost certainly won't happen, while failing to buy protection for a reality that statistically might. Understanding this "Black and White" math is the first step to financial resilience.
What are the leading causes of disability and illness claims?
While we fear accidents, the data shows that Cancer and Musculoskeletal issues are the primary drivers for Life, TPD, and Income Protection claims. Mental Illness has also become a leading cause for Income Protection. In 2026, the probability ($P$) of a claim event is rarely driven by a single "accident" but by the biological "Numbers of Life":
$$P(Claim) = f(\text{Genetics}, \text{Lifestyle}, \text{Time})$$
How do these numbers impact a 'Key Person' in a business?
For business owners, the risk is multiplied by the number of partners. If you have a 1 in 10 chance of death, and you have two partners, the chance of the business facing a death event increases significantly. A Sovereign business plan accounts for this cumulative risk, ensuring that a health crisis for one partner doesn't become a Financial Train Wreck for the entire entity.
Is diabetes really that significant a risk in Australia?
The numbers are undeniable: 275 Australians develop diabetes every single day. It currently occupies 1 in 4 hospital beds. Because Type 2 diabetes often develops after age 45, it perfectly coincides with the peak earning years of most professionals and business owners, making it a "High-Impact" risk for income stability and life insurance underwriting.
What is the 'Absolute' best way to manage these statistics?
You cannot avoid the statistics, but you can Transfer the Risk. By using Life, TPD, Trauma, and Income Protection insurance, you move the financial consequence of "The Numbers" from your family's balance sheet to the insurer's. This ensures that even if you become a statistic, your family's future remains a Going Concern.
Disclaimer: Statistical probabilities are based on broad Australian population data (ABS and AIHW). In 2026, individual risk varies based on lifestyle, occupation, and health history. To see how these numbers apply specifically to your "Sovereign" situation, we recommend a confidential consultation.
Call us today on 1300 137 403 or email us here for a no-obligation private chat about your situation.
Drew Browne is a specialty Financial Risk Advisor working with Small Business Owners & their Families, Dual Income Professional Couples, and diverse families. He's an award-winning writer, speaker, financial adviser and business strategy mentor. His business Sapience Financial Group is committed to using business solutions for good in the community. In 2015 he was certified as a B Corp., and in 2017 was recognised in the inaugural Australian National Businesses of Tomorrow Awards. Today he advises Small Business Owners and their families, on how to protect themselves, from their businesses. He writes for successful Small Business Owners and Industry publications. You can read his Modern Small Business Leadership Blog here. You can connect with him on LinkedIn. Any information provided is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance.
