The disability income insurance is a standalone term insurance plan that pays you a fixed monthly income for a period upon your inability to work in your own occupation or the inability to perform a stipulated number of daily activities such as washing, toileting, feeding, dressing, mobility and transferability.
You can get covered for up to 75% of your last drawn fixed monthly income
Up till the age of 65.
Disability income is a grossly overlooked insurance plan, it is commonly confused with a total and permanent disability insurance which pays a lump sum upon severe disability diagnosis.
Total permanent disability (TPD) coverage usually come along as an accelerated rider to a death coverage in a life insurance plan.
The criteria for total and permanent disability are generally more stringent, not only must you be totally disabled, the condition must be able to last through 6 months on the following definitions in order to make a claim:
The disability income plan provides a monthly income pay-out right after 2 or 3 continuous months of waiting period should:
The disability income insurance may continue to protect you by providing top-ups in proportioned to the percentage of reduced income if you can eventually resume working yet find a job that pays less than the monthly income you used to earn before disability.
Disability income insurance fills in the coverage gap by paying you a monthly income especially when you fall into the category of being disabled but not serious enough to claim for total and permanent disability.
If you are concerned about the event of being ill and disabled and unable to work but still must provide for your family and your own monthly expenses, the disability income insurance is a plan you should consider.
On top of providing employees coverage for partial disability, disability income insurance is eligible to be purchased by the self-employed and unemployed under a different claim definition.
The definition for claim on self and unemployed is based on the inability to perform certain activities of daily living.
Disability income insurance continues to provide coverage for you with a different claim definition even if you eventually become unemployed for a period of time, however, different insurers will have a different claim condition during such scenarios.
It depends on the insurer, one company may not require you to reduce your coverage, while another company may require you to reduce your coverage to 75% of your latest salary. You may find out more by making an enquiry.
Yes, as the structure and premium of the plan is pegged to your job scope and occupational risks.
