---
title: "What are the chances of needing to claim on your personal insurance policy? - Sapience Financial"
description: "Uncover the likelihood of needing to make insurance claims, including critical illness, income protection, life insurance, and total and permanent disablement. Evaluate your insurance cover for better protection."
url: "https://sapience.com.au/blog/what-is-the-chance-of-needing-to-claim-on-your-personal-insurance-policy"
date: "2026-05-26T02:46:19+00:00"
language: "en-GB"
---
# What are the chances of needing to claim on your personal insurance policy?
- 🛡️ Specialist Risk & Underwriting
- [ life insurance ](https://sapience.com.au/life-insurance/life-terminal-illness-insurance)
- [ income protection ](https://sapience.com.au/all-tags/income-protection)
- [ total & permanent disability (TPD) ](https://sapience.com.au/all-tags/total-permanent-disability-tpd)
- [ business debt protection ](https://sapience.com.au/all-tags/business-debt-protection)
- [ insurance claims ](https://sapience.com.au/insurance-claims)
- [ chart ](https://sapience.com.au/all-tags/chart)
- [ 🛡️ Specialist Risk & Insurance ](https://sapience.com.au/insights/specialist-risk-insurance)
 Reading Time: 3 minutes
---
### We all have to learn how to prioritise big decisions
There are some statistics in life that you simply need to know so you can make better choices.
Most people wouldn't dream of traveling overseas without Travel Insurance to protect their luggage and their health. Nobody wants to be stranded overseas with no luggage or worse, in a foreign hospital hoping the local doctors have the right skills, medication and sanitation standards that's not going to put you at greater risk.
### So what's the chance of you needing to make an insurance claim?
Here's what you need to know.
- 1 in 3 chance of needing to claim because of a medical **Critical Illness**
- 1 in 4 chance of needing to claim on your **Income Protection**
- 1 in 10 chance of needing to claim on your **Life Insurance** before expected
- 1 in 20 chance of needing to claim for a **Total and Permanent Disablement**
Now you know how close those numbers are, maybe it's time to take a second look at your personal insurance cover for you, your family and your business.
### The Numbers of Life | The Statistical Risks of Life we all face
** Crisis & Trauma** We all have a **1 in 3** chance of suffering a critical medical trauma or significant illness during our working life.
** Income Protection** We all have a **1 in 4** chance of being sick or injured and unable to work for at least 3 months during our working life.
** Life & Terminal Illness** We all have a **1 in 10** chance of unexpectedly passing away during our working life.
** Total & Permanent Disability (TPD)**
We all have a **1 in 20** chance of being disabled long term with a total and permanent disability.
Source: Life Underwriting Guidelines
### The simple difference between [personal](#Personal-insurance) insurance and [general ](#General-insurance)insurance
**Personal insurance** is insurance to protect 'people'.
- This would include [Life insurance](https://sapience.com.au/index.php?option=com_content&view=article&id=198&Itemid=756), [Medical Crisis or Trauma](https://sapience.com.au/index.php?option=com_content&view=article&id=208&Itemid=766) Insurance, [Income Protection](https://sapience.com.au/index.php?option=com_content&view=article&id=207&Itemid=765), [Total and Permanent Disability](https://sapience.com.au/index.php?option=com_content&view=article&id=215&Itemid=767) (TPD) and even [Business Fixed Expenses](https://sapience.com.au/index.php?option=com_content&view=article&id=210&Itemid=768) cover (because it's to protect a person - you the business owner.
- Personal insurance is usually **applied for once and guaranteed to renew every year** without any need to apply regardless of any changes in your health or occupation.
**General insurance** is insurance to protect things. General insurance usually needs to be renewed and reapplied for.
- This would include car insurance, home insurance and similar policies for 'things'
- General insurance usually needs to be **renewed and reapplied for every year** so if there had been a change in your claims history, your financial position, driving record or many even your health, there is usually no guarantee this insurance will be available to you the following year.
### The Big 4 Numbers represent the statistical reality for all Australians
Make sure you prioritise the people in your life and business more than the 'stuff'.
**Do we sound like the type of people you'd like to do business with?**
Call us today on 1300 137 403 or email us [here](https://sapience.com.au/index.php?Itemid=704) 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](https://sapience.com.au/index.php?Itemid=1267). You can connect with him on [LinkedIn](https://www.linkedin.com/in/drewbrowne/). 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.
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