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Total and Permanent Disability And That Plan Called ElderShield

When you buy any life insurance plan, the basic benefits are that you are covered against Death and Total and Permanent Disability. So do you what does this insurance term – Total and Permanent Disability – mean to you?

The General Definition of Total And Permanent Disability (TPD)

It would practically mean that the loss of a pair of limbs (inclusive of eye sight) and being unable to work continuously for six month and thereafter. This, of course, must be certified by a certified Medical Practitioner. If the definition here differs from what you should know, please do refer to the Product Summary of your life insurance and it’ll be explained there.

The General Exclusion For Total And Permanent Disability

Do you know that, in Singapore, the coverage for TPD will cease the moment you have reached 65 years old whereas the rest of the coverage like Death or against the 30 Critical Illnesses will still continue.

So Is Having The Coverage For TPD Important?

Life is full of uncertainty and you’ll never know when such an unforeseen circumstance like a stroke will hit you to be permanently disabled – you lose your job permanently, loss of income for your family, you are very much alive and there’ll be a definite financial difficulties as long as you are alive.

Therefore, having a coverage for TPD (some insurance companies will pay a lump sum whereas others may pay a certain limit per month or per year) is beneficial in making sure that you have enough financial assistance to take good care of yourself while you are down.

So Why Does Total And Permanent Disability Cease To Continue After Age 65?

This is a very good question that I, myself, do not have an accurate answer. In my personal opinion (I may be wrong) is that, the health risk for people to have Stroke or Alzheimer’s Disease (Total and Permanently Disabled) is tremendously high, which could have a serious financial impact on insurance companies to sustain this risk. Therefore they decide to have this general clause of having it till age 65.

Stroke And Alzheimer’s Disease Are On The Rise, So How Do I Get Myself Covered After Age 65?

The ElderShield Plan

If you are concerned about getting covered after the age of 65, there is an initiative taken by the CPF Board to help take care of Singaporeans in terms of severe disability, that is the Eldershield Plan, which is offered automatically to Singaporeans and PRs who are CPF members and have turned 40 years old.

Read More »Total and Permanent Disability And That Plan Called ElderShield

It’s Either You Understand ILPs Or You Don’t

Do you know what’s Investment-Linked Plans (ILPs)?

Whatever the case is, this plan can either help you to make your money work real hard and make you smile or totally dry up your money (suffer a loss) and leave you cursing (at the company or the Planner).

I am writing this post with great disheartening that there are many Planners who are still selling this plan to Clients who are:

  • totally non-risk takers (risk averse)
  • short term savers
  • ignorant of the sale charges of the plan and the advisory fees (commission)
  • thinking that this kind of plan is a pure Savings plan and the funds that they put in (monthly or lump sum) are 100% capital guaranteed which means that they will still get back their sum invested if no bonuses are given or the funds are not performing at all!
Do You Know What You Are Investing?

So Do You Know Really What You Are Investing?

My Chat With A Client Who Cried

Read More »It’s Either You Understand ILPs Or You Don’t