AIA Premier Disability Cover

It is often said that the family home is the biggest financial commitment that most of us will make in our lifetime. But your biggest financial asset is not your home, it's yourself. You insure your car and your home, so isn't it wise to also protect your single biggest asset - your ability to earn an income?

Disability that is not permanent can lead to significant time off from work. Wouldn't you like to have a disability income protection plan that provides regular payouts for what matters most to you when you are unable to work?

Disability Insurance

Stroke is the top cause of disability*

More than 60% of stroke survivors remain significantly disabled 3 months after they were afflicted*

Financially speaking, disability can be worse than passing away. It is one of the most devastating threats to a family’s financial security. And it’s a mistake to think that disability only strikes the elderly.

Every year, more than 10,000 people in Singapore suffer a stroke and are admitted to hospital^. And 1 in 10 of all hospital admissions are the result of an accident^. We are all at risk, all the time, and an illness or injury that prevents you from working can start a downward slide that wipes out all of your assets.

* Source: Supervised therapy helps stroke patients recover faster – The Straits Times, 29 March 2012
^ Source: Ministry of Health website – Top 10 conditions of hospitalisation

Effective protection for your biggest asset - income

AIA Premier Disability Cover is an effective way to protect you against the impact of loss of income over an extended, or permanent, period of time. It pays a monthly benefit of up to 75% of your existing income if you are unable to work and earn an income due to illness or injury.

Benefits at a glance:

Income Benefit

when you are not earning any income
If you become disabled and are unable to perform your own occupation to earn an income, the plan will, at the expiry of the deferment period, pay out the monthly benefit for up to 2 years. Thereafter, you are still eligible to receive the monthly benefit (up to age 65 or until you recover from your disability, whichever is earlier) if you are unable to perform any suitable occupation by training, experience or education to earn an income.

When you are still earning income
If you can find paid work of another kind with pay that is lower than the monthly benefit you have purchased, the plan will top up your earnings to match the amount of the monthly benefit.

Lump Sum Payouts

  • Rehabilitation Benefit reimburses necessary rehabilitation expenses1 of up to 6 times the monthly benefit per disability.
  • Catastrophic Disability Benefit2 pays 24 times the monthly benefit.
  • Death Benefit3 of 12 times the monthly benefit.

Payback Benefit
A deferment period of 60 days of disability must elapse before the first payout is made. AIA Premier Disability Cover offers a Payback Benefit of up to 2 times the monthly benefit to replace lost income during the deferment period.

Premium waiver with continued protection
Your premium will be waived when you are receiving the monthly benefit, up to age 65 or until you recover from your disability, whichever is earlier. This means that you will not have to pay future premiums, but you will continue to be protected and eligible to receive benefits.

To find out more about AIA Premier Disability Cover, download our brochure or contact your AIA Financial Services Consultant or Insurance Representative.

1 Any rehabilitation treatments and expenses shall be approved in writing by AIA, and where appropriate, be certified in writing by a physician to be necessary prior to the incurrence of such expenses
2 Catastrophic Disability Benefit is payable only once during the lifetime of the policy
3 Death Benefit is applicable for standalone policy only

Eric Lim is a 39-year-old accountant, single living with his widowed mother. As the family’s sole breadwinner, he decides to protect his future earnings with AIA Premier Disability Cover at 75% of his existing income of $10,000 per month ($7,500 monthly benefit), for an annual premium of $2,130.

At the age of 43, he is involved in a road traffic accident which leaves him permanently paralysed from the waist down. Therefore, he is unable to work as an accountant and any suitable occupation that he has been taught, experience in or being trained for throughout his lifetime. He is on medical leave for a month before quitting his job as he is no longer able to work as an accountant. He receives a Catastrophic Disability Benefit in the form of a lump sum payout of $180,000 immediately. He also receives a Payback Benefit of $5,000 to cover for the lost income during the deferment period. His future premium payments are waived and he starts to receive a monthly benefit of $7,500 two months later.

At the age of 60, he passes away unexpectedly. The Death Benefit of $90,000 is paid to his mother.

Note: This illustration is based on a 39-year-old Male non-smoker, occupational class 1 and is for illustration purpose only

Important Notes:

This insurance plan is underwritten by AIA Singapore Private Limited (Reg. No. 201106386R) (“AIA”). All insurance applications are subject to AIA’s underwriting and acceptance. This is not a contract of insurance. The precise terms and conditions of this plan, including exclusions whereby the benefits under your policy may not be paid out, are specified in the policy contract. You are advised to read the policy contract.

Buying a life insurance policy is a long-term commitment. You should consider carefully before terminating the policy or switching to a new one as there may be disadvantages in doing so. The new policy may cost more or have fewer benefits at the same cost.

The information is correct as 2 July 2012.