Coverage Type
Income Replacement
Payout
Monthly Income
A practical guide to protecting your income if illness or injury prevents you from working.
01 / The Foundation
Everything else - savings, investments, property - depends on your ability to earn.
Your future earning capacity often exceeds the value of all your other assets combined. For most working adults, the ability to show up and earn an income funds every financial goal: paying down a mortgage, building savings, supporting family, and planning for retirement.
Unlike your home or car, your income doesn't have a visible price tag. This makes it easy to overlook - until it stops.
A simple question: If your income stopped for 6 months, would your financial life continue as planned?
43%
Of 40-year-olds will experience a long-term disability before age 65
53%
Of Singapore workers have no disability income protection
2 in 3
Workers worry about job loss due to illness or disability
02 / The Reality
Income stops. Expenses don't.
Working
Regular income flows in
Unable to Work
Income stops, expenses continue
Recovery or Adaptation
Return to work or adjust
These don't pause when you can't work
The gap: These expenses require income, but there's no income coming in.
Most people focus on medical bills. But the bigger challenge is often the loss of income while recovering - which can last months or years.
03 / How It Works
Monthly income replacement when you cannot perform your occupation.
You become disabled
Unable to work in your occupation
Waiting period
Typically 30-90 days
Monthly payouts begin
Up to 75% of your income
Continues until
Recovery or age 65
Own Occupation
You receive benefits if you can't perform your specific job, even if you could do other work.
Deferred Period
The waiting time before benefits begin. Longer periods typically mean lower premiums.
Benefit Period
How long payouts continue if you remain disabled - often until age 60 or 65.
John, School Teacher
$5,000/month | Age 30
John was seriously injured in a car accident and couldn't work for over a year. His spine injuries later required him to switch to an office role with a 40% pay cut.
Dr. Lim, Dentist
$15,000/month | Age 35
Dr. Lim developed severe carpal tunnel syndrome. While not "permanently disabled," she can no longer perform dental procedures - her own occupation.
Notify Insurer
Within 6 months of disability
Submit Documents
Medical reports, proof of income
Wait Deferred Period
Typically 30-90 days
Receive Benefits
Monthly payouts begin
Required Documents: Claim form, Attending Physician's Statement, medical reports, payslips (12 months prior), employer letter confirming leave/inability to work.
04 / Important Exclusions
Understanding the boundaries helps you plan your overall protection.
Each type of coverage addresses a different risk. They work together, not as alternatives.
Key point: Disability Income Insurance focuses specifically on replacing your monthly income. Other insurance types handle medical costs, lump sum needs, and long-term care.
05 / Understanding the Differences
Three types of coverage, three different purposes.
Pays for medical treatment
Covers: Hospital bills, surgery, treatments
Payout: Reimburses actual costs
Purpose: Get treatment without financial worry
Lump sum upon diagnosis
Covers: 37+ serious conditions
Payout: One-time lump sum
Purpose: Treatment costs, lifestyle adjustments
Monthly income replacement
Covers: Inability to work
Payout: Monthly (like salary)
Purpose: Pay bills while recovering
Hospital Plan
Covers treatment bills
Critical Illness
Lump sum for expenses & adjustments
Disability Income
Monthly income for 18 months of recovery
All three work together. None alone provides complete protection.
Three different coverages for three different needs - they are not alternatives
Income Replacement
Payout Type
Monthly (like salary)
Trigger
Unable to perform own occupation
Duration
Until recovery or age 65
Covers
Temporary & Permanent
Amount
Up to 75% of salary
Best for: Working adults who need income replacement
Lump Sum Protection
Payout Type
One-time lump sum
Trigger
Total & Permanent disability
Duration
One-time payment only
Covers
Permanent only (very strict)
Amount
Usually = Death benefit
Best for: Settling debts immediately
Long-Term Care
Payout Type
Monthly (for care needs)
Trigger
Fail 3 of 6 ADLs
Duration
Lifetime
Covers
Severe disability only
Amount
$600+/month (MediSave payable)
Best for: Long-term care expenses
| Feature | Disability Income | TPD (Life/Term Rider) | CareShield Life |
|---|---|---|---|
| Purpose | Replace lost income | Settle debts immediately | Cover long-term care costs |
| Payout Structure | Monthly (salary-like) | One-time lump sum | Monthly (fixed amount) |
| Benefit Amount | Up to 75% of salary | Equals death benefit | $600+/month (2026) |
| Disability Definition |
Own occupation (24mo) Then any suited occupation |
Very strict: Lose 2 limbs or fail 3 ADLs permanently |
Fail 3 of 6 ADLs (Severe disability) |
| Temporary Disability | ✓ Covered | ✗ Not covered | ✗ Not covered |
| Partial Disability | ✓ Proportional payout | ✗ All or nothing | ✗ No partial benefit |
| Payout Duration | Until recovery or age 65 | One-time only | Lifetime |
| Mental Health Coverage | ✓ Some plans | Usually excluded | Depends on ADLs |
Without DII: You have a major gap for temporary disabilities, partial disabilities, and "own occupation" disabilities that don't meet strict TPD or CareShield criteria.
Key Takeaway
TPD and CareShield Life are NOT substitutes for Disability Income Insurance. They cover different scenarios and should be considered complementary, not alternative coverages.
06 / Planning Considerations
The right amount depends on your circumstances, not a formula.
Most policies allow coverage up to 75% of your monthly income. The remaining 25% accounts for work-related expenses you won't incur while disabled.
Consider what you'd need to maintain your basic standard of living - not your entire current lifestyle.
A financial conversation can help you think through what makes sense for your specific situation.
The goal isn't to replicate your salary exactly. It's to cover essential expenses so you can focus on recovery, not finances.
07 / Clearing Up Confusion
What many people believe vs what actually happens.
Common belief
"My TPD coverage already protects me if I can't work."
Reality
TPD requires permanent disability - losing limbs or failing 3 ADLs. Most disabilities that stop you from working don't qualify.
Common belief
"Disability only happens to people in dangerous jobs."
Reality
Mental health conditions, back problems, and chronic illnesses are common causes - affecting office workers as much as anyone.
Common belief
"My savings can cover a few months off work."
Reality
Many disabilities last 6-24 months or longer. Savings meant for other goals get depleted, setting you back financially even after recovery.
Common belief
"It's too expensive for the risk."
Reality
Premiums typically range from 1-3% of annual income. Compare that to the cost of losing 100% of your income for months.
08 / Worth Knowing
It's not about awareness - it's about how protection is typically discussed.
Only 3 insurers in Singapore offer standalone Disability Income plans. Many advisors simply aren't familiar with the product.
Death coverage is simple. Critical illness is straightforward. Income protection requires understanding disability definitions and benefit periods.
Many assume their TPD rider or employer benefits provide similar protection. Often, they don't.
The coverage gap isn't deliberate. It's simply that income protection requires a conversation most people never have. If you're reading this, you're already thinking more carefully than most.
09 / Is It For You?
If your family depends entirely on your income, DII ensures they're protected if you can't work.
Dentists, surgeons, pilots, musicians - if a specific skill is your livelihood, protect it.
Your mortgage doesn't pause when you're disabled. DII ensures you keep your home.
No employer benefits? DII is your safety net when you can't earn.
The higher your income, the greater your potential loss. Protect your lifestyle.
If your employer doesn't provide disability coverage, you need your own.
A common misconception is that DII is only for construction workers or those in hazardous environments. In reality, office workers are just as vulnerable - mental health conditions, back injuries, and repetitive strain are increasingly common causes of disability.
🧠
Mental Health
Depression, anxiety, burnout
🖥️
Repetitive Strain
Carpal tunnel, back problems
🫀
Medical Conditions
Heart issues, autoimmune disorders
If you couldn't work for 6 months, could you maintain your current lifestyle?
Do you have dependents who rely on your income?
Do you have ongoing financial commitments (mortgage, loans, insurance premiums)?
Is your ability to work tied to specific skills or physical capabilities?
If you answered no to question 1 and yes to any others, Disability Income Insurance should be a priority.
10 / Available Options
Only 3 insurers offer standalone Disability Income Insurance plans
| Feature | Provider A | Provider B | Provider C |
|---|---|---|---|
| Monthly Benefit | Up to 75% of income | Up to 75% of income | Up to 75% of income |
| Own Occupation Definition | Until age 65 | First 24 months only | First 24 months only |
| Benefit Period | Until age 60 or 65 | Up to 10 years or age 65 | Up to 10 years or age 65 |
| Deferred Period | 30/60/90/180 days | 30/60/90/180 days | 90 days |
| Escalating Benefits | 3% p.a. option | Yes | 3% p.a. option |
| Partial Disability | Yes | Yes | Yes |
| Premium Waiver | During disability | During disability | During disability |
Premiums typically range from 1-3% of your annual income, depending on:
Age
Younger = Lower
Occupation
Risk level matters
Benefit Amount
Higher = More premium
Deferred Period
Longer = Lower
Note: Women may pay higher premiums due to historically higher claim rates (pregnancy, autoimmune conditions). Smokers typically pay 25% more than non-smokers.
11 / Common Questions
Employer-provided disability coverage (if any) typically ends when you leave your job, may have lower benefit amounts, and may have stricter definitions of disability. A personal policy stays with you regardless of employment changes, is portable, and you control the terms. Most employer plans also only provide short-term disability coverage (a few months), while personal coverage can protect you until age 65.
Yes, if you have both policies and meet the claim criteria for each, you can claim from both.
For example, if you're diagnosed with cancer (CI claim) and cannot work (DII claim), you would receive:
• A lump sum from your Critical Illness policy for treatment costs
• Monthly payouts from DII to replace your income while you recover
This is why financial planners recommend having both coverages - they serve different purposes.
Most plans include a Partial Disability Benefit. If you can return to work but earn less due to your disability,
the plan will pay the difference proportionally.
Example: If your benefit is $5,000/month and you return to work at 60% capacity (earning 60% of your previous salary),
the plan may pay you $2,000/month (40% of the benefit) to bridge the gap. This incentivizes recovery while still protecting your income.
This varies by insurer and policy. Some plans do cover mental health conditions like clinical depression, anxiety disorders,
or burnout if they prevent you from performing your occupation. However, there may be limitations or waiting periods for mental health claims.
This is actually a significant advantage over Critical Illness (which typically doesn't cover mental health)
and TPD (which has very strict requirements). Always check the specific policy wording.
You can apply with pre-existing conditions, but the insurer may:
• Exclude claims related to that condition
• Charge higher premiums (loading)
• Decline coverage in severe cases
This is why it's important to secure coverage while you're still healthy.
Once you develop a condition, it becomes harder and more expensive to obtain coverage.
If you pay for your policy with after-tax dollars (personal funds), the benefits are generally tax-free in Singapore. However, if your employer pays for the premiums and the policy is considered part of your employment benefits, the benefits may be subject to income tax. Consult a tax professional for your specific situation.
Yes, absolutely. TPD and DII are complementary, not alternatives. Here's why:
TPD only pays if you're totally and permanently disabled (lose 2 limbs, or fail 3 ADLs permanently).
This is a very high bar - most disabilities don't meet this criteria.
DII pays if you can't perform your own occupation, even temporarily. A dentist who develops hand tremors,
a pilot who loses partial vision, or an office worker with severe back pain would likely NOT qualify for TPD but WOULD qualify for DII.
Think of TPD as catastrophic coverage and DII as income replacement for the more common (but still serious) disabilities.
Disability Income Insurance connects to every aspect of your financial security
Your income funds everything - mortgage, education, retirement. Let's assess what coverage you need to maintain your lifestyle if illness or injury stops you from working.
No sales pressure. We focus on understanding your needs first.