Disability income insurance provides a loss of income if the insured is unable to work in his/her occupation due to illnesses and sickness. The insurance payout can stretch to age 65 depending on the medical condition. It is different from the Total Permanent Disability (TPD) insurance from life insurance as TPD payout a lump sum.
Disability income insurance can insure up to 75% of one’s income!
It is an excellent income replacement policy as the lump sum payout from critical illnesses insurance often deplete readily due to medical costs. Professionals are increasingly interested in this plan as this insurance protect one of their most valuable asset – their earning power.
Unfortunately, there are only 3 insurance companies in Singapore that provide disability income insurance. Worse, insurance agents often avoid this policy as it is difficult to explain.
What to look out for in your disability income insurance?
There are a few things that one should look out for this policy
- Waiting period – refers to the number of days before the benefit will be paid upon unable to work due his/her own occupation due to illnesses or accident
- Occupation class – refers to the amount of risk of the insured occupation. In general, office-based admin is class 1. Admin based that requires regular travelling will be class 2. A manual labour that involves machinery will be class 3. Manual labour involves heavy machinery or involves working with height will be class 4. The higher the risk, the higher the class and the higher the premium
- Claiming condition
- Premium of the disability income insurance
Below is a comparison of class 1 occupation (indoor admin) male at different age with different income.
To have a better understanding of disability income protection.
To ensure your income is protected when you are ill.
To ensure your income is protected when an accident happened.
Fill up the form below for a discussion of your disability income protection.
Disclaimer: The tables above are comparisons based occupation class 1 (office admin that does not involve travelling) and may not apply to your occupation. It is also essential to read the product summary for the claiming conditions as they change in different stages of the policy. We recommend you to speak to a professional who could explain to you the various claim conditions on disability income insurance.