Aim

Protection available only to individuals with earned income for generating a continuous stream of income to

• support cost of living
• subside medical expense arising from the disability
• fund the expenses associated with tough change during transitional period arising from the disability
• continue saving accumulation for retirement need
• conserve the existing investment fund
• transfer the disability risk at low cost than using saving fund and other means
• relieve burden of the corporation on continuous salary payment to disabled key employee / owner who is no longer actively and materially participated
• fund the buy-out of business by owner from disabled owner

Covered Benefit

Total Disability Benefit  

Monthly disability benefit which normally accrue from the first day after the elimination period and will continue until the earliest of

(a) cessation of the insured’s total disability;
(b) the termination date ;
(c) the expiration of the applicable Maximum Benefit Period.

Amount of Benefit paid in month will be reduced where necessary so that the total of :

1. the total disability benefit payment, and
2. the monthly amounts of any worker’s compensation and other moneys received from any government scheme or under legislation or common law relating to injury or sickness, and
3. monthly amounts payable from the insured’s employer or a business, and
4. monthly payments from other insurance companies, pension or provident funds and other sources in respect of injury or sickness does not exceed the participation limit of the Insured’s Pre-Disability Monthly Earnings.

Residual Disability

Amount is paid during the period of Residual Disability in which the reduction in monthly earnings is greater than certain percentage, commonly 25%, of pre-disability monthly earnings and will continue until the cessation of residual disability and maximum specified period (2 years or less) whichever is the earliest.

Fomula:

Recurrent Total Disability

Total disability benefit is continued to pay immediately without waiting the completion of elimination period if

• following the period when a Total Disability Benefit is payable,
• the insured returns to active full-time employment and within 6 months and
• the insured again suffers total disability from the same or related injury or sickness

Hospitalization Benefit

Amount related to certain percentage of Total Disability Benefit is paid if

• the insured is confined to Hospital for a continuous period of time usually more than 14 days
• subject to maximum period

Rehabilitation Benefit

Maximum amount of expense spending on a pre-approved formal program of occupational rehabilitation for the insured is paid as long as the total disability benefit has been paid for at least 6 consecutive months. The amount is usually limited to 6 times of the total disability benefit.

Transplant Benefit & Presumptive Disability Benefit

The waiting period shall be waived and the benefit subject to maximum period shall accrue from the first day of total disability resulting from

• Transplant which is considered as Total Disability from Sickness.
• irrevocable loss of both eyes / irrevocable loss of 2 limbs which is presumed as Total Disability

Accident Death Benefit

Lump sum of certain full months of the Monthly Disability Benefit is paid to Beneficiary of the Insured who dies within 90 days or more after the date of injury.

Policy Type & Coverage period

• Standalone Policy or Rider attaching to Life Insurance Policy
• Maximum Benefit Period - choose amongst (1) 5 years  or (2) till aged 65

Policy proceed

• Monthly benefit limit in case of disability as per covered benefit during the specified period after the elimination period
• Participation limit of benefit : varies from 70% or 80% for first sum of monthly income and reduces accordingly as per insurer’s sliding scale.
• Elimination period : amount of time that must elapse following the onset of disability before the insured monthly benefit is provided (normally 20 / 60 / 90 /180 days and the longest 365 days).

Premium

• Increased every 5 years / as per age or Level Premium
• Subject to occupational class of risk

Policy Cash Value

• No Policy Cash Value
• Refund of Premium Paid at maturity age 65

Rider Availability: Wavier of Premium

Other Features

No Claim Bonus / Cost of Living Adjustment Benefit /Guarantee Insurability Option

Market

The disability risk is often ignored, individuals and employers insure against the risk of death more frequently than against the risk disability.  The penetration of disability protection is surprisingly low. And often, the risk insured is not the most significant problem – that is a significant amount of the coverage is short-term disability Insurer has many rooms for improving the product.