Disability Income Insurance

Disability income insurance pays a fixed amount each month to replace the income you would lose if you are unable to work as a result of an accident or illness. These policies may pay up to 80% of your average monthly salary. The policy aims to ease your financial loss, but will not completely replace the income you earned before the accident or illness.

Do note that:

  • There may be a deferred period during which benefits will not be paid. Benefits are payable only if you are continuously disabled after the deferred period. The monthly income benefit will usually be paid for up to 5 or 10 years, or until you are 60 or 65.
  • The monthly payments are stopped or reduced when you start working again, even if it’s not the same work that you did before your illness or accident. The reduction in benefits may be in proportion to any recovery you make. The insurer will assess your rate of recovery through medical check-ups.
  • Clarify with your insurer how disability is defined in the policy. Some policies may define disability as not being able to perform your usual work. Others may define it as not being able to do any work at all. The amount of premium payable can vary depending on a number of factors, including the definition used. Do check with your insurer for the definitions used in your policy.


The above information is prepared in collaboration with the Life Insurance Association of Singapore and the General Insurance Association of Singapore.