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Chapter 4: Disability Income insurance - Coggle Diagram
Chapter 4: Disability Income insurance
Differences with TPD
Issued on stand-alone or rider
Maximum sum assured is based
on percentage of salary
Only available to working adults
with income
Escalation benefit available
Definitions
Total Disability
Own occupation
Inability to perform material duties
of his own occupation
Modified own occupation
Inability to perform similar occupations
even with experience
Any occupation
Cannot perform any occupation
Severe disability
Insured unable to perform three of 6 ADLs
Used when insured disability occurs when
insured not working
Partial Disability
Insured recovers from total disability
to continue working
Decrease of
at least 25%
OF SALARY
Deferred/Elimination period
Period of time insured needs
to be disabled before benefits paid out
Longer deferred period = cheaper premium
Benefits
Partial Disability
A.K.A rehabilitation benefit
Total benefit
Payout begins if disability continues
after expiry of deferred period
Insurer will pay pro-rata amount based on daily rate
if disabled for less than 1 month
Rehabilitation Expense benefit
Reimbursement for participating
in rehabilitation programmes
Includes
Training courses
Medical aids
Workplace modifications
Waiver of Premium
Premiums due will be waived during
benefit payout period
Characteristics
Insurer unable to cancel policy
Underwriting
Individual
Notice of assessment
CPF statement
Computerised payslip
Certified letter from company
Self-employed
Notice of Assessment
Medical test report
Large amount questionnaire