$1 mil or 10 years equivalent of current income, whichever is higher

Total Permanent Disability is a phrase used in the insurance industry, referring to a situation because of a sickness or injury, a person is unable to work in their own or any occupation for which they are suited by training, education, or experience. In some cases, it can also be determined by the inability to perform the common pre-determined six activities of daily living (ADL) including (by oneself) washing, dressing, feeding, mobility, toileting, transferring.

This is likely the worst state to be in as the victim would not be in a position to make much choices for himself. Even simple things that we take for granted, like brushing teeth and toileting, requires external help. Eyes wide open.

This coverage is essential because it protects against the financial impact of losing the ability to work and earn an income due to a severe disability. In such life-altering situations, medical bills, rehabilitation costs, and daily living expenses can quickly accumulate. TPD coverage provides a lump sum payout that can help replace lost income, fund ongoing care, and make necessary lifestyle adjustments such as home modifications or mobility aids. It ensures that even in the face of permanent incapacity, individuals can maintain their dignity, financial independence, and continue supporting their family without becoming a burden to loved ones.

$500,000 or 5 years equivalent of current income, whichever is higher

Early Critical Illness (ECI) Coverage is crucial because it provides financial support at the early stages of a serious illness, when recovery is still possible and treatment is most effective. Unlike traditional CI plans that pay only at advanced stages, ECI coverage offers a payout upon early diagnosis—allowing for immediate access to quality treatment, second opinions, or time off work to recover. It relieves the financial pressure during a vulnerable time, helping with medical bills, supplements, lifestyle changes, or even income replacement. ECI coverage empowers individuals to fight illness with less stress, improving both recovery outcomes and peace of mind.

$1 mil or 10 years equivalent of current income, whichever is higher

This provides coverage when one is diagnosed in the major stages of a critical illness akin to medical emergencies like heart attack, stroke, or cancer. This is not the same terminal illness stage. Today’s medical advancements does provide a chance to full recovery. What is really important is to recognise that recovery must not be at the costs of your entire life savings accumulated over the years or extensive downgrading of your current standard of living. At a time when you may not be able to work and earn a salary, this gives you additional options to seek medical treatments or complementary therapy.

No, it does not mean that without family history of known critical illnesses, or when you are young you are immune. To put it plainly, hospitals DO NOT live on repeated patients from the same family. Yes, it pays to insure young as the premiums are much more affordable and you have a higher chance to recoup the premiums paid.

Most importantly, it is easy to say “if anything happens, just let me die”, making your family members see it happen is a lot harder than you think.

$1 mil or 10 years equivalent of current income, whichever is higher

This covers injuries, which might include a broken limb, loss of a limb, burns, lacerations, or paralysis. In the event of your accidental death, it also pays out money to your designated beneficiary. Accident coverage usually comprises of 2 main components. One being a benefits payment, which basically pays a lump sum on meeting the schedule of benefits (broken limbs) or medical certification requirement (MC given by doctors), the other being a reimbursement payment of medical costs for treatments. It pays to understand that benefit payments will stack up regardless if you experience a financial loss because of the accident, while reimbursement payments will cover your financial loss up to the amount your paid out-of-pocket, or up to the sum assured you purchased, whichever is lower.

Depending on the chosen distributions channel by which you purchase your policies, terms and conditions relating to benefit payments can differ by a lot. One contract could possibly read as “Loss of limbs”, while another could be “Loss of or the permanent total loss of use of both limbs”. The difference is far greater than you can imagine.

The claims period allowed by your policy is another point to watch out for as some policies allow you only 15 days to file your first claim notification to the insurer, and others 30 days.

Complimentary medicine like traditional Chinese medicine and/or chiropractors are often covered as an extension to the policy. this allows you leeway to seek other less mainstream medical help.

Fully covered with hospital income plan covering non-claimables

Hospitalisation insurance covers payments for hospital stays, outpatient medical treatment (pre and post bills), day surgeries, and some hospital-related activity that involves the insured's health. Hospitalisation insurance also involves hospital cash plan.

It makes absolute sense to understand that it takes 4 different components to make up a proper hospitalisation coverage. The main plan which covers bulk of serious hospitalisation, the rider which covers the initial part of the hospital bill, the hospital reimbursement plan that covers a percentage of the out-of-pocket expenses and the hospital income plan that provides cash for daily in-patient stays to cover additional costs on the part of the insured.

With the current 5% co-payment introduced into the health insurance scene, workplace insurance now plays a very important role. Both the workplace and personal hospitalisation plans need to be able to work hand-in-hand to be effective. especially so when panel doctors are dictated by some insurers, and other introduce excess in event of a claim.

Up to 75% of monthly income

This provides supplementary income in the event an illness or accident results in a disability that prevents the insured from working at their regular employment by which they are reasonably trained. Benefits are usually paid monthly so the insured can maintain a comparable standard of living and pay recurring expenses like food, housing loan repayments, transport, medication, helper etc to name a few.

This is a largely overlooked component of financial planning, but it also provides the best stop gap measure until the required sum assured coverage is achieved by the insured’s purchases of life and term policies. The max sum assured allowed to be purchased is up to 75% of one’s monthly income. The rational is that it is mostly possible to downgrade your lifestyle immediately by only about 25% of your current standard of living. In such a claimable event, the insured can now delay the use of majority of the lump sum payout until after age 65.

In the event that insured is able to return to work in a lower capacity than before, this will also pay the difference between the sum assured and the new monthly income to ensure that the standard of living is not compromised.

In Singapore, CareShield Life provides a basic level of lifelong cash payouts for severe disability, but Disability Income insurance complements it by covering partial disabilities or higher income needs. Together, they offer a more complete and dependable financial safety net.

It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Maybe you just want to live life. Whatever you wish, money and the positive growth of money plays a key role.

Most people understand the concept of man-at-work. They forget the concept of money-at-work to combat inflation and also to avoid having “lazy” money. The common viewpoint is that when they see the absolute amount of money in their bank account grow, they understand that as money is growing. The hidden danger is the actual purchasing power of your money. By working with a trusted advisor, you gain a clear roadmap tailored to your lifestyle and aspirations—empowering you to build a lasting legacy with confidence, clarity, and peace of mind.

Think, 10 years ago, how much is your coffee? How much is it now? How much would it be 10 years later? Would your money grow as fast ? if it does not, then you are losing money. Period.

Next comes the fact that we are assuming that you are always fit and proper to continue earning a big fat income. If something happens half way and you recover from the bout of illness or accident, retirement does not take back seat. It stays on course and still happens at age 65.