Sunday, May 06, 2007

Disability income insurance

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.
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2 comments:

Anonymous said...

Hi Mr Tan,
Does disability insurance cost very much? Does NTUC offer this product?

Thank you.
Lynn

May 06, 2007 3:52 PM
Anonymous said...

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.

Critical 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.

August 19, 2010 1:36 PM

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