Importance of Getting A Disability Insurance

What if one day, you found yourself unable to do the things that you usually do? What is your most precious possession? Your residence? Your car? Your health? For most people, it is their income. Many of us get insurance to safeguard our homes, cars, and health, but we neglect to protect our most valuable asset: our income.?

Life’s reality happens every single day. If your financial security depends on your capacity to work and generate a stable income, then you need disability insurance. The term "disability insurance" conjures up ideas of accidents and worst-case scenarios for most individuals. Disability insurance protects your income rather than addressing the medical costs of an accident or disease. As a result, many industry professionals refer to it as disability income insurance and advise that most Singaporeans who are currently employed seek disability coverage.? If you are sick or injured and unable to work, disability insurance might help you keep up with your home and auto payments. It offers you with an income to pay your daily living expenditures even if you don't own a home.?

What are the benefits of disability insurance?

A disability policy is a legally binding agreement with an insurance company to pay a monthly payout if you become handicapped. Every policy, long or short term, has five basic features:

• Premium: The cost of the policy, which you (or your company) pay. Premiums are determined by the length and type of coverage, as well as your health, benefit amount, and other criteria.
• Benefit: When you are unable to work, you get paid a monthly sum. It should be 60-80% of your monthly pay. An individual policy's benefit is normally tax-free (unless purchased with pre-tax cash); but, a group plan's benefit will be taxable if provided in part by your employer.
• Benefit period: The time limit for receiving benefits. For STD, this is usually less than a year; for LTD, it could be up to two years until you retire or recover from your illness.
• Waiting Period: The time between becoming handicapped and getting benefits is known as the elimination or waiting period. In most cases, STD will be shorter and LTD will be longer.
• Definition of Disability: In order to qualify for benefits, each disability policy has its own definition of disability. Different levels of disability (such as "partial disability") may be designated, allowing you to receive different percentages of your entire benefit amount.

Disability insurance is crucial protection for most people against things that are impossible to plan for, such as a life-altering disability, a debilitating sickness, or even a global pandemic, regardless of their career or income level. We insure our houses, automobiles, and health, and disability insurance is just as important for our financial security and well-being in the future.