SINGAPORE, 18 MAY 2022 – While two-thirds (66 per cent) of Singapore’s local workforce are worried about job loss due to illness or disabilities, more than half (53 per cent) do not have any disability income protection, according to findings from the AIA Disability Income Survey 2022.
The survey, conducted in April 2022 amongst more than 1,000 respondents1 consisting of full-time working Singapore Residents aged 18 and above, also revealed that:
- Our workforce understands and recognises the value of disability income protection.
- Aside from cutting down on spending (66%), the local workforce would look to survive the financial implications of a job loss due to an illness or injury by:
- Relying on savings (63%)
- Finding another job where other tasks or duties can be done (58%)
- Claiming from insurance (50%)
- More than 4 in 5 (84%) know that disability income protection exists though blue collar workers (42%) deem it to be very important to have such coverage compared to white collar workers (29%).
- Top 2 reasons for getting disability income (DI) protection are to have peace of mind should anything happen (53%), and to ensure that there is financial support for loved ones if unable to work (51%).
- More than half of the respondents aged 18 and above purchase DI coverage for peace of mind. From this group, those aged 45- 54 (52%) value DI coverage most for its ability to provide financial support for self and loved ones if unable to work.
- Simplicity and certainty of payouts are top priorities when choosing a disability income policy.
- 9 in 10 highlight the importance of having mental health conditions covered in disability income policies.
- Most valued features of a disability income policy identified are:
- Monthly payouts if unable to specifically perform own occupation due to illness, mental conditions, or injuries (91%).
- Fixed monthly disability income regardless of whether there are any sources of income during disability2 (90%).
- Fixed monthly disability income regardless of any future changes in income prior to disability e.g. pursuing a role which may pay less3 (90%).
- Key barriers to purchasing disability income policies include product complexity, complicated processes and high premiums.
- 1 in 4 (25%) of females cite the cost of premiums as a reason for not having DI protection compared to less than 1 in 5 (16%) of males. This was the most selected reason amongst females.
- However, 22% of men said they did not have DI protection because they don’t think they need it – the most selected reason amongst males. Only 13% of women chose this reason.
Melita Teo, Chief Customer and Digital Officer, AIA Singapore, said, “Losing one’s job and becoming dependent on others due to an unexpected accident or illness is painful and places heavy financial and emotional burdens on a person and their loved ones. Understanding the pain points of disability income plans allows us to better address Singaporeans’ concerns which range from affordability, to ease of getting insured and making a claim. These are key priorities which informed how we developed the AIA Pay Protector to make disability income protection accessible to even more members of the community.”
In 2021, a Ministry of Manpower (MOM) report noted that workplace injuries have risen to pre-covid levels, with construction, transportation and storage sectors accounting for the highest number of fatalities . The gap in disability income protection is a cause for concern, especially among blue-collared workers who are at a higher risk of disability due to the nature of their work.
AIA Pay Protector - first-in-market simplified disability income plan offers lower premiums, fixed monthly benefits regardless of income fluctuation or any sources of income and simplified processes
Designed with insights and feedback from customers and AIA Insurance Representatives, the AIA Pay Protector addresses key concerns and barriers around product complexity, vague definitions, and claims uncertainty arising from declaration of earnings and income fluctuation.
Customers can select their desired fixed monthly payouts from a range of $1,000 to $5,0005 where benefits will be paid out for up to 5 years6 in the event where they are unable to perform material duties of their own occupation due to illness or disability (physical or mental).
With fixed payouts, claim processes are streamlined and become more efficient due to the elimination of calculation when claims are eventually made.
AIA Pay Protector also provides payouts in the event of job loss due to mental health conditions, paving the way for destigmatising mental health within the workplace.
This echoes the growing focus on mental health and well-being amongst Singaporeans as they emerge from a prolonged pandemic. As a leading insurer, AIA Singapore recognises the need for the inclusion of mental health in different types of insurance coverage, and as a reason for job loss across occupations. In 2019, AIA Singapore is the first insurer to cover mental health in its critical illness plan, AIA Beyond Critical Care.
Irma Hadikusuma, Chief Product Proposition Officer, AIA Singapore, said, “It is important for us to recognise and help people address their protection gaps with simple, innovative solutions. The pandemic has accelerated the need for greater financial independence - regardless of whether you’re single or have a family to care for. AIA Pay Protector responds to this demand by promising continuity of this independence with certainty of income in the short term for the unexpected event of job loss due to mental illnesses or physical disabilities.”
Customers who are keen to apply for AIA Pay Protector can do so directly from My AIASG app or contact an AIA Insurance Representative. The hassle-free application process includes a simple medical history questionnaire that customers can fill out on their own. Customers are neither required to disclose their actual income amount nor submit their payslip in the process of application via our digital direct sales platform.
For more information on AIA Pay Protector, and AIA’s comprehensive disability proposition, please visit: https://www.aia.com.sg/en/our-products/disability-income-protection/aia-pay-protector.html7