InsuranceLecturer — You are suddenly unable to work. For the majority of us, our main source of income is from our work. As such, if we are not able to perform our work due to any mishaps such as medical sickness or injuries, this can be financially devastating. Without an income, you quickly exhaust your savings, and it can undermine your family’s financial security.
Now some of you may think that since they have bought some form of insurance, the insurance company should be able to cover this. However, if you have only bought life or term insurance, you must satisfy the criteria of total and permanent disability which by definition must be total loss of both limbs, total loss of both eye-sights etc. which can be rather stringent to claim from your existing insurance.
So what happens if you are disabled and cannot perform your normal duty of work? Is there any insurance plan out there in the market that you can purchase to cover this gap and provide you with certainty of income for the period which you are not able to work?
The answer is yes and that insurance is known as disability income insurance. Typically, this disability income insurance insures 75% of your current employment income. In the event that you are unable to work and your employment income is terminated due to any injuries or sickness, these plans will kick in to compensate 75% of your income after a period of time (known as waiting or deferment period) following the start of any disability.
This compensation from the insurance company can be continued up to your retirement age at 65 depending on the type of plan that you have bought. Furthermore, if you are unable to regain your previous income level drawn from your work prior to disability, these plans will also supplement the difference in your income level after your disability if you manage to find employment.
As such, if your lifestyle is dependent on your working income, it will be prudent to take up this type of disability income insurance policy. Most people will tend to agree that this is the most important insurance policy that one should have besides your medical and health insurance plan.
For more information about how you can guaranteed your employment income with Disability Income insurance plan in Singapore, click the contact us button and drop us an email to find out more today!