Financial Planning
July 18, 2023
Best Disability Income Protection Plan Singapore 2024
Disability Income protection, protects your income in the event of disability and unable to work in your current profession. Different from Total and Permanent Disability (TPD), Disability Income plan pays out monthly as a form of income replacement when you are unable to perform in your own occupation.
What is Disability Income Protection?
It is a type of non-participating stand-alone term insurance that covers one till age 65. It has a pay out monthly (up till 75% of your current income) if you are unable to perform in your own occupation. It also covers for Total and Permanent Disability (TPD).
Why Do You Need Disability Income Protection?
More than often, the chances of being partially disabled and unable to continue performing in your profession is higher than being totally disabled. For Disability Income Protection, it covers you by paying out a maximum coverage monthly income of up to 75% of your last drawn fixed income.
Disability Income protects and responds to one fundamental concerning gap: If in the event of unabling to work due to early stage critical illness or partially disabled but not totally disabled, and you still need to provide for dependants and monthly bills & expenses, then Disability Income Protection is a coverage you should strongly consider.
Partial Disability Coverage
Claim for partial disability. Provides partial income pay-out upon reduction in pay due to disability and unable to work in your profession.
Less Stringent Criteria
The criteria for claims are not as stringent as Total Permanent Disability (TPD) definitions, therefore easier to claim than TPD.
Shorter Waiting Period
The waiting period is much shorter as compared to Total Permanent Disability (TPD).
Can Self and Unemployed personnel be covered under Disability Income Protection?
Yes. When it comes to claims, the definition for self-employed and unemployed will be based on not able to perform certain ADLs (Activities of Daily Living), depending on insurer. This differs from being covered as an employee.
The Winner
5/5
AIA
Premier Disability Cover
A shorter 2 months waiting period for claims to be paid out, 12 times of sum assured as death benefit, less stringent occupational change criteria.
Runner-Up
4/5
Singlife with Aviva
IdealIncome
Competitive premiums, ideal disability income coverage complementing Singlife with Aviva’s suite of disability care, critical illness and death coverage plans.
Which Disability Income Plan is for you?
Certain insurers has disability income riders imbued into their main plan while some are stand-alone Disability Income plans. With the different definitions, it can be very confusing to discern which best suits you.
Simply fill in the questionaire to find the coverage best suited to your needs. Our experienced licensed FA advisor will get in touch with you shortly upon your request.
No obligations. No hidden fees and costs. Just professional advice.
Frequently Asked Questions
No they are not the same. Disability Income plans puts into consideration on your occupation, as it pays out in the unfortunate event of unable to work in your profession.
Total Permanent Disability (TPD) only pays out when you are unable to perform at least 3 out of the 6 Activities of Daily Living (ADLs)
Disability Income however, includes TPD as pay out coverage.
This ariticle explains the difference: Best Disability Income Plans Singapore – The Ultimate Guide
After a waiting period of uninterrupted 2 or 3 months (depending on insurer), the plan will pay out a monthly income.
The criterias are:
- You are unable to perform a considerable amount of duty in your own profession for the first 24 months
- From the 25th month onwards, you remain unable to perform in any profession of your reasonable background of experience and education, the plan continues to pay out.
1. It must be an uninterrupted total disability for at least 6 continuous months diagnosed from the start of the disability.
2. You are disabled due to illness or accident and are totally unable to perform/engage in any occupation/business activities for income
3. You are unable to perform 3/6 Activities of Daily Living (ADLs):
- Washing
- Dressing
- Feeding
- Toileting
- Moving
- Transferring
4. You are disabled due to illness or accident permanently loss the TOTAL use of:
- Sight in both eyes
- Two limbs above wrist or ankle
- Sight in one eye and one limb above wrist or ankle
Yes. This is because the coverage and premium of your plan are structured and underwritten according to your class risk related to your occupation and profession scope of work.
Read also: Best Disability Income Plans Singapore 2023 – The Ultimate Guide
It depends. Insurers differ from one another. One insurer may require you to reduce your coverage amount as another may not.
To have a precise understanding, please make an inquiry for our professional advisors to plan for you.
In such event, the difference of your reduced income will be proportionately adjusted and you will still be covered for when you go back to work but pays you lesser than your previous income.
Not necessary, you will still be covered even if unemployment prolongs. However, insurers will have different set of conditions to fulfill for the claims.
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