Disability income insurance pays a fixed amount each month to replace the income you would lose if you are unable to work as a result of an accident or illness. The policy aims to ease your financial loss, but will not completely replace the income you earned before the accident or illness.

How is it normally sold:

  • Term
  • Whole Life Plan

Coverage:

  • Partial Disability
  • Rehabilitation
  • Optional Escalation

Points to note:

  • Employment period; your policies might require you to be employed for a certain period before qualifying for its coverage (E.g more than 30 days of employment)
  • Coverage points; it has a few tranches, mostly 2. There will be a review to see how much should be paid to you after the first 24 months.
  • Duration of Coverage; your policy wouldn’t be more than 65 unless you’re a civil servant for Mindef or MHA.
  • Escalation Option: Higher premium with higher …