SingLife Disability Income Plan

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SingLife Disability Income Plan

3.5

/5

Type

Occupational Disability Income Insurance

Covers

Occupational Disability

Optional add-on Riders

N.A

Available Policy Term

Coverage up to age 55, 60 or 65

Overview

- Replaces up to 75% of monthly gross income when not able to perform the material duties of the insured’s own occupation. (65% for self-employed individuals)
- Can only be applied when the individual is gainfully earning an income, whether through employment or self-employment.
- Premiums vary across four occupational risk classes, with office-based sedentary roles, such as accountants in Class 1, having the lowest premiums, and occupations involving semi-skilled manual work, such as mechanics in Class 4, incurring the highest premiums.

For Whom

Suitable For

Employed and self-employed working individuals below the age of 65. Especially, for sole income earners or professionals with specialised skillsets.

Not Suitable For

Unemployed individuals, individuals in unskilled or semi-skilled manual labour

For What Purpose?

Income replacement for dependants or self in case of:

Partial income replacement

The plan provides a payout as income replacement when the insured meets the definition of ‘Total Disability,’ which is defined as the inability to earn an income due to illness or injury in their own occupation during active working years, lasting for a period of 2 years. After this 2-year period, benefits will either cease or continue if the insured remains unable to work in any occupation, either at full or prorated benefit amount
You can choose to cover up to age 55, 60 or 65

What are the Pros & Cons?

Pros

A catch-all plan that do not require the insured to fulfil the definition of a specific illness, as long as the insured fulfils the criteria of being occupationally disabled from his work, either by illness or injury

Premium is waived when receiving any benefits from the plan, easing cash flow when not earning an income from work

The individual will be continuously covered up to the end of policy term (age 55, 60 or 65) even after the insured has received benefits and recovered from a claim event

Cons

There is a deferment period of at least 90 days after being diagnosed with "Total Disability" by a registered doctor, meaning financial support for treatment and living expenses will not be provided until this period has passed.

Coverage ends at chosen coverage age and cannot be extended.

What's the Cost?

Premiums for male and female, non-smoker, working in a low-risk occupation i.e., deskbound occupation.

Premiums for SingLife Disability Income

Age	Annual Premiums (Male)	Annual Premiums (Female)
25	$322	$577
35	$448	$800
45	$652	$998

Coverage benefits of $3,000/month after a deferment period of 90 days, covering till the age 65.

^The premiums reflect a 35% perpetual discount applied to the standard premium. This discount applies only to policies with a sum assured of $3,000/month or higher.

Things to Note

Travel pattern such as travel time and countries visited is taken into underwriting consideration. Applications may be declined if there is extensive travel to politically unstable or high-risk countries.

To ensure the plan remains valid for payout, any changes in occupation or country of residence must be made known to the insurer. This allows for a re-assessment of occupational risk and any necessary adjustment to the premium.

Premium is level based on age of entry but is not guaranteed.

Written by: Anton Tan, CFP®

Last updated: 13 November, 2024

Disclaimer: This publication has not been reviewed by the Monetary Authority of Singapore. The information contained herein does not have any regard to the specific investment objective(s), financial situation or particular needs of any individual. Buying insurance is a long-term commitment and should be based on your unique needs and the suitability of the products. It is advisable to seek advice from a financial adviser to assess your needs and guide you on the features and details of the products before making any financial decisions. The coverage, benefits, premiums, and terms of insurance policies may vary depending on individual circumstances and insurance providers. Individuals are encouraged to review their own insurance needs and policies and seek advice tailored to their specific situation. While every reasonable care is taken to ensure the accuracy of the information provided, no responsibility can be accepted for any loss or inconvenience caused by any error or omission.

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