Most health insurance plans pay for expenses associated with illness or accidents.
Some plans pay for loss of earnings during a period of disability. The ability to work and earn an income is more important, especially to a person who is supporting a family.
Most disability income insurance covers a short period only.
A plan to cover long term disability can be costly. To hold down the cost, some plans have restrictive provisions:
* coverage for accident only, or include illness?
* the compensation is limited to, say, 60% of the current earnings
* the benefit period may be limited to a certain period
* there is no payment during the initial period of a claim, ie the waiting period
Definition of disability:
* hospital confinement (very restrictive)
* inability to perform one's regular occupation (very wide)
* inability to perform any occupation for which he or she is reasonably fitted by training and experience.
Hi Mr Tan,
ReplyDeleteDoes disability insurance cost very much? Does NTUC offer this product?
Thank you.
Lynn
Disability insurance is now a necessity for all of us who have some risk involved at work. Disability insurance covers you when you're out of work due to a physical injury or a critical illness.
ReplyDeleteCritical illness insurance is a better option for those who need protection from the risk of a severe illness. It may even reimburse a claimant for the entire policy value once he's diagnosed with a listed disease. But when some one needs coverage for both risks, disability insurance is a better option.