What is Disability Income Insurance?

 

 Disability income plan is that it will provide a fixed monthly payout as a form of income replacement if the insured is unable to work as a result of an accident or illness.

 

 

In depth comparison of AIA | Aviva | Tokio Marine 

Disability Income Plans

(for working individuals)

 

Plan AIA Premier Disability Cover Singlife Disability Income Tokio Marine Protect 1
Coverage Term Up to age 65 Up to 55/60/65 Up to age 70
Deferred Period 60 continuous days 3 or 6 months 90 continuous days
Escalating Benefit NA 0% or 3% NA
Total Disability Benefit (For first 24 months) Totally unable to perform the material or substantial duties of his own occupation Totally unable to perform material duties of own occupation or profession to which suited by reason of own training, education or experience Unable to perform 1 out of 6 activity of daily living for up to 3 years or 6 years

Total Disability Benefit (After the first 24 months of Total disability benefit)

Totally unable to perform any occupation to which insured is reasonably suited by reason of own training, experience or education Totally unable to perform any work or engaged in any occupation or profession to earn or obtain any remuneration. NA
Partial Disability Benefit after returning to employment If you can only find a job that pays less than the monthly payout, AIA will supplement your income to match shortfall. Monthly benefit payout based on Aviva Ideal Income calculation if insured is earning less than 75% of Pre-disability earnings NA
Catastrophic Disability Benefit 24 times of monthly benefit in the event of severe disability NA NA
Payback Benefit 2 times of monthly benefit after deferment period if Insured qualifies for  NA 1x of monthly benefit (under Care giver benefit)
Rehabilitation Benefit Up to 6 times of monthly benefit 3 times of monthly benefit Up to 4.7 times of monthly benefit

Death Benefit

12 times of monthly benefit $5000 $5000

 

 

How Disability Income differs from TPD and Careshieldlife?

 

In general, the claim criteria for TPD for whole life insurance or Term insurance are classified by the inability to perform 3 out of 6 ADL; or inability to perform in any work or occupation for a continuous period of 6 months. (Example stated is not limited to criteria cited, and reader should refer to policy conditions of each insurer policy for full definitions).

 

The claim criterion for Careshieldlife is inability to perform 3 out of 6 ADL with deferment period of 90 days.

  • Definition of Activities of daily living:
    1. Transferring: Ability to move from a bed to an upright chair or wheelchair and vice versa

    2. Mobility: Ability to move indoors from room to room on level surfaces

    3. Toileting: Ability to use the lavatory or otherwise manage bowel and bladder functions so as to maintain a satisfactory level of personal hygiene

    4. Dressing: Ability to put on, take off, secure and unfasten all garments and as appropriate, any braces, artificial limbs or other surgical appliances

    5. Washing: Ability to wash in the bath or shower (including getting into and out of the bath or shower) or wash satisfactorily by any other means

    6. Feeding: Ability to feed self once food has been prepared and made available.

 

 

An example on how Disability Income may help:

John Doe, an engineer which will require manual work, suffers from Epilepsy which results in seizure/black out spells.

By definition of claim criterion, he may not qualify for TPD or Careshieldlife benefit. However, if he is medical certified that is he is unable to perform is in own occupation (as an engineer), he will be able receive the monthly disability income benefit.

 

 

Conclusion

 

Disability Income plans will be able to cover any protection gaps that may result in loss of income be it accident, or illness (which may not be critical of nature). AIA Premier Disability Cover and Singlife Disability Income confer the ideal features of a good disability plan as they will provide the income benefit if you are unable to work in your own occupation.

 

With that said, as each individual will have different needs, contact our friendly financial advisors for a more detailed discussion for comparisons of AIA Premier Disability cover, Singlife Disability Income and Tokio Marine Protect 1.

 


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