AIA Premier Disability Cover Brochure - AIA Singapore
AIA Premier Disability Cover Brochure - AIA Singapore
AIA Premier Disability Cover Brochure - AIA Singapore
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PROTECTION <strong>AIA</strong> PREMIER DISABILITY COVER<br />
Have you got a<br />
substitute income<br />
earner?<br />
If not, protect your income when you are unable to work<br />
<strong>AIA</strong>.COM.SG
Stroke is the top<br />
cause of disability*<br />
More than<br />
60 %<br />
of stroke survivors remain<br />
significantly disabled<br />
3 months<br />
after they are afflicted*<br />
* Source: Supervised therapy helps stroke patients recover faster – The Straits Times,<br />
29 March 2012.
Your biggest financial asset is yourself<br />
It is often said that the family home is the biggest financial commitment<br />
that most of us will make in our lifetime. That’s true. But your biggest<br />
financial asset is not your home, it’s yourself. And for the average<br />
employed <strong>Singapore</strong>an, this asset could be worth close to $4m + .<br />
Surprised?<br />
Perhaps you don’t feel like a millionaire now, but the cumulative power<br />
of your earnings should not be underestimated. You insure your car,<br />
your home, and your valuables, so isn’t it wise to also protect your<br />
single biggest asset - your ability to earn an income?<br />
Example<br />
Kelvin Lee is a 34-year-old marketing executive. He earns $4,500 per month, and<br />
expects to get a 5% pay rise each year until he retires at age 65. From now, until he<br />
retires, his cumulative lifetime earnings will amount to about $3,821,000.<br />
Cumulative<br />
Lifetime<br />
Earnings ($)<br />
4,000,000<br />
3,000,000<br />
2,000,000<br />
1,000,000<br />
0<br />
34 40 45 50 55 60 65<br />
+ $4,655 monthly nominal earnings per employee (all-industry average) in Q4 2011.<br />
Source: <strong>Singapore</strong> Department of Statistics, Monthly Digest of Statistics February 2012.<br />
Age<br />
<strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong> <strong>Cover</strong> 4<br />
Your lifetime<br />
earnings can<br />
easily amount to<br />
$4 million + .<br />
Wouldn’t you want<br />
to protect that<br />
asset?
Hospital income, or<br />
hospital cash plans<br />
“I’m concerned about loss<br />
of income or expenses<br />
not covered by my basic<br />
medical plan.”<br />
Medical or hospital<br />
expense plans<br />
“I’m concerned about<br />
paying for medical<br />
expenses if I am<br />
hospitalised.”<br />
<strong>Disability</strong> income<br />
plans<br />
“I’m concerned about loss of<br />
income for 3 months or more<br />
due to disability through<br />
accident or illness.”<br />
Critical illness<br />
plans<br />
“I’m concerned about<br />
the costs associated<br />
with a major illness,<br />
like Cancer.”<br />
Personal accident<br />
plans<br />
“I’m concerned about medical<br />
bills and loss of income if I am<br />
injured in an accident.”<br />
<strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong> <strong>Cover</strong> 6<br />
Financially speaking, disability can be worse than<br />
passing away. It is one of the most devastating threats<br />
to a family’s financial security. And it’s a mistake to think<br />
that disability only strikes the elderly.<br />
Every year, more than 10,000 people in <strong>Singapore</strong> suffer a stroke and are admitted to<br />
hospital; it’s the top cause of disability^. And 1 in 10 of all hospital admissions are the<br />
result of an accident^. We are all at risk, all the time, and an illness or injury that prevents<br />
you from working can start a downward slide that wipes out all of your assets. First a<br />
family can lose its main source of income, and then its savings, as it struggles to pay the<br />
mortgage, regular bills and children’s education expenses. Other types of insurance may<br />
take care of most of your medical expenses, and offer cash payouts for lost income in<br />
the short term. But they will not protect you against the impact of loss of income over an<br />
extended, or permanent, period of time. <strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong> <strong>Cover</strong> has been designed<br />
to complement your other accident, health and severe disability insurance coverage for<br />
360° protection.<br />
^ Source: Ministry of Health website – Top 10 conditions of hospitalisation.
Effective protection for your biggest asset - income<br />
Your lifetime income is your biggest financial asset. <strong>AIA</strong> <strong>Premier</strong><br />
<strong>Disability</strong> <strong>Cover</strong> is an effective way to protect it. It pays a monthly<br />
benefit of up to 75% of your existing income if you are unable to work<br />
and earn an income due to illness or injury. We offer certainty of benefit<br />
payout regardless of any future changes to your income or payouts<br />
from other disability income policies1 .<br />
4,000<br />
Your<br />
Income<br />
Your income<br />
before disability<br />
3,000<br />
<strong>AIA</strong><br />
gives<br />
First 2 years:<br />
Income protection<br />
when you cannot work<br />
1,000<br />
2,000<br />
Your<br />
Income<br />
<strong>AIA</strong><br />
Supplements<br />
Subsequent years:<br />
Income supplement<br />
if you are able to work<br />
at a reduced capacity<br />
Key benefits of this plan include:<br />
<strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong> <strong>Cover</strong> 8<br />
Income Benefit<br />
When you are not earning any income<br />
If you become disabled and are unable to perform your own occupation to earn an<br />
income, the plan will, at the expiry of the deferment period, pay out the monthly benefit<br />
for up to 2 years. Thereafter, you are still eligible to receive the monthly benefit (up to<br />
age 65 or until you recover from your disability, whichever is earlier) if you are unable to<br />
perform any suitable occupation by training, experience or education to earn an income.<br />
When you are still earning income<br />
If you can find paid work of another kind with pay that is lower than the monthly benefit<br />
you have purchased, the plan will top up your earnings to match the amount of the<br />
monthly benefit.<br />
Lump sum payouts<br />
• Rehabilitation Benefit reimburses necessary rehabilitation expenses 2 of up to 6 times<br />
the monthly benefit per disability.<br />
• Catastrophic <strong>Disability</strong> Benefit 3 pays 24 times the monthly benefit.<br />
• Death Benefit 4 of 12 times the monthly benefit.<br />
Payback Benefit<br />
A deferment period of 60 days of disability must elapse before the first payout is made.<br />
<strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong> <strong>Cover</strong> offers a Payback Benefit of up to 2 times the monthly<br />
benefit to replace lost income during the deferment period.<br />
Premium waiver with continued protection<br />
Your premium will be waived when you are receiving the monthly benefit, up to age 65<br />
or until you recover from your disability, whichever is earlier. This means that you will<br />
not have to pay future premiums, but you will continue to be protected and eligible to<br />
receive benefits.<br />
Age 45 and below? Enjoy protection of up to $6,000 per month with<br />
no routine medical examination required.
Example 1 5<br />
Jack Tan is a 34-year-old sales executive, married with one child. As the family’s<br />
main income earner, he decides to protect his future earnings with <strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong><br />
<strong>Cover</strong> at the protection level of 50% of his existing income of $8,000 per month ($4,000<br />
monthly benefit), for an annual premium of $1,376.<br />
At the age of 45, he suffers a stroke leaving him with significant speech impairment. He<br />
is unable to communicate effectively with his clients and therefore, unable to work as a<br />
sales executive.<br />
During the 60-day deferment period, he receives sick pay. After the 60-day deferment<br />
period where he has no income, Jack will receive the monthly benefit of $4,000 for<br />
the next 2 years as his disability persisted and prevented him from working as a sales<br />
executive. His future premium payments are waived but he continues to be covered<br />
under the plan.<br />
On his doctor’s recommendation, and approved in advance by <strong>AIA</strong>, he undergoes<br />
speech therapy and is reimbursed for the full cost of $16,800 under the<br />
Rehabilitation Benefit.<br />
After claiming 2 years of benefits, his condition improves but he is still unable to work<br />
as a sales executive. He is also unable to work in a suitable occupation that he has<br />
been taught, experienced, or been trained for so he can only work part-time as a<br />
data-entry clerk earning $1,500 per month. As long as the disability persists or up to the<br />
age of 65, whichever is earlier, he receives a monthly benefit of $2,500, thereby topping<br />
up his earned income to the value of the monthly benefit.<br />
Age 45:<br />
Suffers<br />
stroke<br />
60-day<br />
deferment<br />
period<br />
No<br />
improvement<br />
in condition<br />
Undergoes<br />
speech<br />
therapy<br />
Rehabilitation<br />
Benefit:<br />
$16,800<br />
Receive Monthly Benefit<br />
of $4,000<br />
After claiming 2 years of benefits:<br />
Condition improves & is able to work as a data-entry<br />
clerk earning $1,500 per month<br />
Premium waived<br />
Monthly Benefit minus current earning:<br />
$4,000 – $1,500 = $2,500<br />
Receive Monthly Benefit<br />
of $2,500<br />
He pays: 11 years x $1,376 = $15,136<br />
<strong>AIA</strong> pays: (24 months x $4,000/month) + $16,800 + (214 months x $2,500/month) = $647,800<br />
Age 65<br />
Example 2 6<br />
<strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong> <strong>Cover</strong> 10<br />
Eric Lim is a 39-year-old accountant, single and living with his widowed mother. As the<br />
family’s sole breadwinner, he decides to protect his future earnings with <strong>AIA</strong> <strong>Premier</strong><br />
<strong>Disability</strong> <strong>Cover</strong> at 75% of his existing income of $10,000 per month ($7,500 monthly<br />
benefit), for an annual premium of $2,130.<br />
At the age of 43, he is involved in a road traffic accident which leaves him permanently<br />
paralysed from the waist down. Therefore, he is unable to work as an accountant or<br />
any suitable occupation that he has been taught, experienced, or been trained for<br />
throughout his lifetime. He is on medical leave for a month before quitting his job as he<br />
is no longer able to work as an accountant. He receives a Catastrophic <strong>Disability</strong> Benefit<br />
in the form of a lump sum payout of $180,000 immediately. He also receives a Payback<br />
Benefit of $5,000 to cover for the lost income during the deferment period. His future<br />
premium payments are waived and he starts to receive a monthly benefit of $7,500 two<br />
months later.<br />
At the age of 60, he passes away unexpectedly. The Death Benefit of $90,000 is paid to<br />
his mother.<br />
Age 43:<br />
Permanently paralysed<br />
60-day deferment<br />
period<br />
Catastrophic <strong>Disability</strong> Benefit: 24 x $7,500 = $180,000<br />
Receive Payback Benefit: (2 x $7,500) – $10,000 = $5,000<br />
Receive Monthly Benefit<br />
of $7,500<br />
Premium waived<br />
He pays: 4 years x $2,130 = $8,520<br />
<strong>AIA</strong> pays: $180,000 + $5,000 + (202 months x $7,500/month) + $90,000 = $1,790,000<br />
Age 60:<br />
Passed away unexpectedly<br />
Death Benefit:<br />
12 x $7,500 = $90,000
Frequently Asked Questions<br />
It is always our intention to write in plain English, and to be as transparent as<br />
possible when describing our products. The questions and answers below reflect the<br />
most common concerns raised by our customers. If you have any other questions<br />
not addressed here, please ask your <strong>AIA</strong> Financial Services Consultant for more<br />
information. Alternatively, you may visit our website at <strong>AIA</strong>.COM.SG or contact our<br />
<strong>AIA</strong> Customer Care Hotline at 1800 248 8000.<br />
Q1. Who can apply for <strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong> <strong>Cover</strong>?<br />
You can apply if you are aged between 16 and 60 years old on your last birthday. You do<br />
not need to be currently in paid employment to apply. Housewives and retirees may apply<br />
with a maximum monthly benefit of $2,500.<br />
Q2. Under what circumstances will the plan pay out?<br />
<strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong> <strong>Cover</strong> will pay out benefits if you are disabled and unable to work<br />
to earn an income. If you are working in a paid job of another kind and earn a reduced<br />
income, the benefit payable will be reduced by your current earnings to top up to the<br />
monthly benefit. It also pays out a lump sum benefit if you suffer catastrophic disability. In<br />
the event of any qualifying disability claim, you will also be eligible to make a claim for the<br />
Rehabilitation Benefit. If you should pass away, a Death Benefit may be claimed by your<br />
dependents. Please refer to the Product Summary for a comprehensive description of<br />
qualifying criteria and definitions.<br />
Q3. Is there a waiting period before a claim is payable?<br />
Yes. There is a deferment period of 60 continuous days from the first day you meet the<br />
disability definition till the day the monthly benefit payout starts. For recurrent disability<br />
occurring within 12 months of the last disability payout and catastrophic disability, the<br />
60-day deferment period does not apply.<br />
Q4. How would my claim be assessed if I am disabled while I am not working?<br />
If you are disabled while you are not working, the plan will pay out the monthly benefit<br />
after the deferment period, for up to 2 years if you are unable to perform 1 out of 5<br />
Activities of Daily Living (ADL) (transferring, mobility, dressing, washing and feeding).<br />
Thereafter, you are still eligible to receive the monthly benefit (up to age 65 or until<br />
you recover from your disability, whichever is earlier) if you are unable to perform<br />
2 out of 6 ADL (as listed above and includes toileting).<br />
<strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong> <strong>Cover</strong> 12<br />
Q5. Are my premiums guaranteed?<br />
The premium rates for this plan are not guaranteed and may be adjusted based on future<br />
experience.<br />
Q6. Can I increase the monthly benefit amount during the policy term?<br />
You may increase the monthly benefit amount during the first year of the policy term only,<br />
subject to underwriting. If you wish to increase your level of protection in subsequent years,<br />
you may purchase an additional policy.<br />
Q7. How will claims be paid out?<br />
Benefits payable under the plan are paid in cash to spend as you wish, with the exception<br />
of the Rehabilitation Benefit which is paid on a reimbursement basis. In the event of death,<br />
the Death Benefit will be paid to your beneficiaries. Any payment or continued payment of<br />
the monthly disability benefit is subject to us receiving proof of disability and proof of loss<br />
and/or change of income to our satisfaction. If you are residing outside of <strong>Singapore</strong> at the<br />
time when a claim is admitted, you will be required to furnish further evidence to support<br />
the claim. Please refer to the Policy Contract for more details.<br />
Q8. What happens if my country of residence and/or occupation changes?<br />
You need to write and let us know when your country of residence; occupation and/or<br />
the material or substantial duties of your occupation change. We may increase or<br />
reduce the premiums payable, and/or the benefits payable or impose different terms and<br />
conditions or terminate the Policy, according to the risk classification of your new country<br />
of residence and/or new occupation.<br />
Q9. What conditions are excluded from this policy?<br />
Common exclusions include HIV/AIDS, suicide and pre-existing conditions. For more<br />
information on exclusions, please refer to the Product Summary.<br />
Q10. Can I change my mind and cancel the policy after I’ve purchased?<br />
Yes. You may cancel the plan by writing to us within 14 days from the date you receive<br />
your policy document (free-look period) and receive a refund of your premium paid<br />
without interest (less any expenses incurred for your medical examination).
1 Subject to full disclosure and no over insurance at the point of application.<br />
2 Any rehabilitation treatments and expenses shall be approved in writing by <strong>AIA</strong>, and<br />
where appropriate, be certified in writing by a physician to be necessary prior to the<br />
incurrence of such expenses.<br />
3 Catastrophic <strong>Disability</strong> Benefit is payable only once during the lifetime of the policy.<br />
4 Death Benefit is applicable for standalone policy only.<br />
5 The example is based on a 34-year-old Male non-smoker, occupational class 2 and is<br />
for illustration purpose only.<br />
6 The example is based on a 39-year-old Male non-smoker, occupational class 1 and is<br />
for illustration purpose only.<br />
Important notes<br />
All terms in upper case set out in this brochure are defined in the Policy Contract. This<br />
insurance plan is underwritten by <strong>AIA</strong> <strong>Singapore</strong> Private Limited (Reg. No. 201106386R)<br />
(“<strong>AIA</strong>”). All insurance applications are subject to <strong>AIA</strong>’s underwriting and acceptance. This<br />
brochure is not a contract of insurance. The precise terms and conditions of this plan,<br />
including exclusions whereby the benefits under your policy may not be paid out, are<br />
specified in the policy contract. You are advised to read the policy contract.<br />
Buying a life insurance policy is a long-term commitment. You should consider carefully<br />
before terminating the policy or switching to a new one as there may be disadvantages<br />
in doing so. The new policy may cost more or have fewer benefits at the same cost.<br />
The information in this brochure is correct at the time of printing (1 June 2012).<br />
We Are Asia<br />
About <strong>AIA</strong> Group<br />
<strong>AIA</strong> <strong>Premier</strong> <strong>Disability</strong> <strong>Cover</strong> 14<br />
The <strong>AIA</strong> Group is a leading pan-Asian life insurance organisation that traces its roots in<br />
the Asia Pacific region back more than 90 years. It provides consumers and businesses<br />
with products and services for life insurance, retirement planning, accident and health<br />
insurance <strong>AIA</strong> Group as well Limited as wealth and management its subsidiaries solutions. (collectively “<strong>AIA</strong>” or “the<br />
Group”) comprise the largest independent publicly listed pan-Asian<br />
life insurance group in the world. It has wholly-owned main operating<br />
subsidiaries or branches in 14 markets in Asia Pacific – Hong Kong,<br />
Thailand, <strong>Singapore</strong>, Malaysia, China, Korea, the Philippines, Australia,<br />
Indonesia, Taiwan, Vietnam, New Zealand, Macau and Brunei and a<br />
26 per cent joint venture shareholding in India.<br />
The business that is now <strong>AIA</strong> was first established in Shanghai over<br />
90 years ago. It is a market leader in the Asia Pacific region (ex-Japan)<br />
based on life insurance premiums and holds leading positions across<br />
the majority of its markets. It had total assets of US$114,461 million<br />
as of 30 November 2011.<br />
<strong>AIA</strong> meets the savings and protection needs of individuals by offering<br />
a range of products and services including retirement planning, life<br />
insurance and accident and health insurance. The Group also provides<br />
employee benefits, credit life and pension services to corporate clients.<br />
Through an extensive network of agents and employees across Asia<br />
Pacific, <strong>AIA</strong> serves the holders of more than 24 million individual policies<br />
and over 10 million participating members of group insurance schemes.<br />
<strong>AIA</strong> Group Limited is listed on the Main Board of The Stock Exchange<br />
of Hong Kong Limited under the stock code “1299” with American<br />
Depositary Receipts (Level 1) traded on the over-the-counter market<br />
(ticker symbol: “AAGIY”).
<strong>AIA</strong> <strong>Singapore</strong> Private Limited (Reg. No. 201106386R)<br />
1 Robinson Road, <strong>AIA</strong> Tower, <strong>Singapore</strong> 048542 Monday - Friday 8.45am - 5.30pm <strong>AIA</strong> Customer Care Hotline: 1800 248 8000 <strong>AIA</strong>.COM.SG<br />
SGPD2012002-071-01062012