A Reader has recently submitted these following questions (some of these have been edited for the purpose of this blog post) about the Dependants’ Protection… Read More »My Responses To The Questions On The Dependants’ Protection Scheme (DPS) And 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.