Farming is more than a job – it’s often your livelihood and family legacy. There’s no such thing as “sick leave” on a farm; if you’re laid up, the chores can’t wait. For many farms, losing a key person can quickly affect cashflow and long-term viability.

Insurance helps reduce this risk by:

• replacing income if you’re unable to work
• helping pay for labour to keep the farm running
• reducing financial stress during already difficult times
• supporting your family if you pass away.

Without insurance, families may be forced to sell assets or take on debt at the worst possible moment. With the right cover in place, you have options. You can focus on recovery or planning your next steps, rather than worrying about immediate bills.

At a glance: Insurance options for farmers and agricultural workers

Farmers insurance

Farmers insurance products provide monthly payments when: 

• you or another covered key person is unable to carry out your duties due to illness or injury
• the condition meets the policy’s definition of total or partial disability
• you’ve been unable to work for longer than your selected waiting period.

The payments are designed to help with cashflow and keep the farm or business running during your recovery.

Cover amount

Cover amounts vary across plans and may be based on the agreed amount when you took out your policy, a proportion of farm turnover, business overheads, or pre-disability income. Maximum monthly limits vary by policy, with some providing up to $50,000/month.

Waiting period

The waiting period refers to how long you must be unable to work before your insurance starts paying. For example, if you choose a four-week waiting period and suffer a serious illness that keeps you from working, payments will start if, after four weeks, you still can’t go back to work. 

Waiting periods vary across plans and can range from as short as two weeks to as long as two years.

Benefit period

The benefit period is the maximum time payments are made. Common options include 6 months, 12 months, and 24 months, with a few plans offering benefit options up to 5 years or to age 65.

Built-in benefits

Most policies have the following built-in features:

• Total disability benefit: Pays the full monthly benefit if, after the waiting period, you’re totally disabled and cannot perform your duties due to illness or injury.
• Recurrent disability benefit: If the same condition returns within a set period after you go back to work, payments may restart without a new waiting period.
• Partial disability benefit: Pays a partial monthly benefit if you can return to work in a limited or reduced capacity. This benefit is an optional add-on in some plans.
• Rehabilitation and/or retraining support: Some policies include access to rehabilitation services, retraining, or financial support to help you recover and return to work sooner.
• Cover conversion: Allows you to convert your cover to another policy if your circumstances change (e.g., you switch to another profession).

Optional add-ons

Some policies allow you to add the following:

• Seasonal increase benefit: Increases your monthly benefit during a nominated peak farming season, when costs and workload are higher
• Specified injury benefit: Provides a one-off payment for certain serious injuries, even if you can continue working
• Farm consultancy support: Helps fund professional farm management or consultancy support if you’re totally or partially disabled
• Business security/business increase option: Allows you to increase your monthly benefit to reflect higher business turnover or needs, without additional medical assessment.

Please note: Terms and conditions, as well as exclusions, apply to all insurance products. It's important to review your policy carefully to understand the specific terms of cover, benefits, and any limitations. This ensures that you have a clear understanding of the protection provided by each product. If you have any questions or would like some help finding the right policy, book a callback with a Policywise adviser; it's fast and free.

Other types of insurance for farmers: Life, trauma, disability, and health cover

The monthly benefits provided by farmers insurance policies are essential for day-to-day cashflow, helping with short-term income disruptions and keeping the business going. 

However, farmers insurance doesn’t cover every risk faced by farm owners and agricultural workers. There are key gaps that can still leave you and your family under financial pressure.

• It doesn’t usually cover death: These policies are not designed to pay a significant benefit if you pass away. They also don’t provide money for funeral costs or long-term financial support for your family.
• It doesn’t pay for serious illness if you can still work: If you’re diagnosed with a serious condition, like cancer, but can continue working and you do not meet the eligibility for a partial benefit, you won’t receive financial support. The cover is linked to your ability to work, not the diagnosis itself.
• Many do not provide lifelong payments: Most plans have a limited benefit period, such as 6, 12, or 24 months. Payments stop once the benefit period ends, even if you’re still ill or disabled.
• It doesn’t pay for private healthcare costs: Should you wish to go private to skip long waits in the public health system, or need life-saving or life-extending non-Pharmac drugs, you’ll need to pay the medical costs out of your own pocket.

To cover these gaps, you can combine farmers insurance (which pays monthly benefits for a set period) with other types of insurance that provide lump sum benefits or cover expensive medical costs.

Life insurance

Life insurance pays a lump sum if you pass away or are diagnosed with a terminal illness. The money can be used to clear major debts, meet funeral costs, support living expenses, and help your family maintain their standard of living. 

For farm owners, this can help keep the farm running instead of needing to sell quickly under financial pressure. For other agricultural workers, it helps ensure partners and children are supported if your income suddenly stops.

Trauma (critical illness) insurance

Trauma insurance pays a lump sum if you suffer a serious injury or illness, such as cancer, heart attack, or stroke. You can still receive the payout even if you keep working and are not totally or partially disabled. You can get trauma cover as a standalone plan or combined with your life insurance.

Farmers can use it to reduce debt, pay for treatment-related costs, get additional help on the farm or at home, or take time off to recover.

Total and permanent disability (TPD) insurance

Disablement insurance pays a lump sum if a permanent disability due to illness or injury prevents you from going back to work. It’s designed for life-changing events, not short-term setbacks. The payout and additional benefits can help replace your income, support long-term care needs, and help you transition to a different career. You can get TPD cover as a standalone plan or combined with your life insurance.

Health insurance

Comprehensive health insurance helps cover private medical costs, including surgery, hospital, surgical and non-surgical treatments, cancer care, specialist consultations, and major diagnostic tests. 

Having medical cover means you don’t have to worry about the costs if you opt to go private to skip long waiting times in the public health system. Getting diagnosed and treated sooner helps you recover faster, which is especially important during busy seasons when time away from your work has a direct impact on your income. It also protects your savings from large medical bills.

For example, if you need a knee replacement, you'll face lengthy wait times in the public system for specialist appointments or surgery. You can use your medical cover to help pay for the cost of your knee surgery, so you can return to work sooner.

Why combining cover matters

Rural business owners and workers face different risks. The right mix of insurance provides short-term and long-term financial security for farmers and their families in the face of serious health issues, temporary or permanent disabilities, or death.

A Policywise adviser can help you understand how these covers work together and which combination suits your role, income, and family situation.