TGFISG Updates
Do You Need Loss of Income Protection?

Do You Need Loss of Income Protection?

Insurance is all about risk management. It’s where we transfer life’s risk to insurance companies for a small fee. Now imagine yourself as a breadwinner who supports your family financially. If one day you got sick and cannot work, do you have other source of income where your family back home can rely on? If one day your company stops loving you because you cannot be of use to them anymore due to your illness, will someone take care of your families needs?

If your answers to both questions are NO, then you need loss of income protection.

I am referring loss of income due to hospitalization of various causes. There are cases that we can get hospitalized in few days, few weeks and even few months. During those days, perhaps our salary also stop.

There are 2 types of MEDICAL policy you can get: MEDICAL – HOSPITALIZATION and MEDICAL – LOSS OF INCOME BENEFIT.

In most cases, your company is providing you the medical policy with hospitalization at a cap. Your company policy will shoulder your hospital bills depending on the limit your company bought for you. However, they will not pay you daily income while you are inside the hospital. Not unless you are on hospital/medical leave and you are still part of the company. What if not? Where will you get the money to support your loved ones?

This is where loss of income protection comes into play. If you have this plan, insurance company will pay you daily allowance while you are inside the hospital.

As I mentioned in my previous blog, such medical policies are basically CHEAP in Singapore compare to the Philippines. For example, male and female of age 31 to 40, can get a loss of income policy for around $500+ per year.This plan have benefits such:
– $300 per day daily hospital income
– $500 per day additional income if due to accident
– $750 per day additional benefit if in ICU
– $400 benefit upon discharge
– $150 per day benefit for the next 5 days if after discharge you are required to take rest or still unfit to work
– and so on

(This is just an example, specific product and figures cannot be posted here. )

The good thing about such plan is that coverage is worldwide, any hospital in the world. Regardless if it is private or public, you can file a claim. Foreigners can avail too 🙂

Let me cite you a sample breakdown. Imagine a person got involved in a vehicular accident, and spent 10 days in the hospital for treatment with 5 days in ICU. So here goes the claim:
– $300 x 10 days hospitalization
– $500 x 10 days due to accident
– $750 x 5 days in ICU
– $400 benefit upon discharge
– $150 x 5 days MC provided upon discharge

All in all, this person can file a claim amounting to almost $13,000. For the price of what, paying a cheap premium of around $500+ per year.

We are getting a policy not because we want to use it. But if time comes that we have to use it, isn’t it great to have one?

To know more about loss of income protection and plans you can get in Singapore, do contact me 🙂 I’ll be glad to help.

About Richard Macalintal

Hi my name is Richard. I am a Registered Financial Services Consultant in Singapore. If you have any queries or you need help on your insurance policies and investment linked products, feel free to message me :-) We can have a cup of coffee while I do financial review and give advice with regards to your finances :-) Contact me thru email rlmacalintal(at)yahoo.com or SMS me +65 82235186. Disclosure: I am a Financial Consultant of AIA. The statements or opinions expressed on this site are my own and do not necessarily represent those of AIA.

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