Disability Income Insurance

The disability income insurance pays a fixed monthly income for a period due to the partial inability to work or the partial inability to perform daily activities such as washing, toileting, feeding, dressing, moving and walking around.

3 key features of Disability Income Insurance (DII)

Key differences between Disability Income Insurance (DII) and Total and Permanent Disability Insurance (TPD)

FeatureDisability Income Insurance (DII)Total and Permanent Disability Insurance (TPD)
What is it for?DII is a type of policy that provides financial support in the event that you are temporarily unable to work due to an accident or illness. TPD is a policy that provides a lump sum pay out for when the insured is totally and permanently disabled.
PayoutsDII pays out monthly, until the policyholder makes full recovery and resume working. While DII can provide some financial assistance, it is not meant to fully replace your previous income. TPD coverage provides a one-time lump sum payment in the event of a permanent disability with no chance of recovery.
Claim criteria
  • Temporary disability due to an illness or accident that results in the inability to work for a period of time
  • Must have an occupation and an official salary
  • Payment will stop or reduce once you can start work again.
  • Total physical loss, or the inability to take part in any paid work for the rest of a person’s life
  • No claim if the insured is merely unable to perform the same job as before, or is unable to perform a job to which his or her training, education or experience is suited for.

Definitions of “disability” may vary among different insurance companies, so it is advisable to review these definitions carefully before purchasing an insurance policy.

Should you consider Disability Income Insurance (DII)?

  • Recommended for those in high-risk occupations, and those with job roles that require specialised skills, such as chefs, dentists, pilots, or divers.
  • If you are the sole breadwinner, you may want to consider getting a DII as it will be an immense help to your family during the period of lost income until you recover.

Can you add disability income benefits to your existing policies?

Yes, you can add Disability Income Riders to your Term Life or Whole Life policies to enhance their coverage.
  • Some plans provide payouts at a reduced capacity when your condition has improved, and you are able to return to work.
  • You can choose between standalone DII plans or DII riders attached to a main plan.
  • Benefits, terms, and conditions vary between insurers, so it’s important to understand them before making a commitment.

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