Disability Income insurance today represents the cutting edge in employee benefits
 According to health statistics, about one in five individuals in Hong Kong and Singapore is likely to be affected by debilitating illnesses such as cancer at some point in their life. This is just one of many destructive and long term illnesses that can be devastating to the life – and lifestyle – of employees, their families and their employers. Even if the patient fully recovers, the financial impact can be quite severe.
Additionally, there has been a growing incidence of chronic illnesses in developed countries, such as heart, cerebral and pulmonary diseases. These illnesses often necessitate an employee to take extended periods of time off work. Major life and health insurers are also reporting a growing number of mental and stress related cases (such as depression) that are long-term in nature, as it has become more socially acceptable to seek treatment for these disorders. As average wealth levels in Asia climb, these medical trends are of increasing relevance to our region.
Popular forms of disablement insurance, such as Personal Accident (PA) or Permanent and Total Disability (PTD) will normally only provide a one off lump sum payment, with the former only covering disablement resulting from an accident. Where such schemes do provide an income benefit, it is often just for a short period, after which the insured person will have to look to other means of supplementary income.
This has enormous implications for employers and the well being of their staff. Group Disability Income (DI) insurance is an avenue through which companies can mitigate the impact of risks in this area, for the employee and employer. DI can be included as part of a comprehensive package of benefits, alongside Group Life, Medical and Personal Accident covers. DI insurance is designed to cushion the financial impact of temporary or permanent incapacity by providing ongoing income replacement. This benefit can be payable right up to normal retirement age, without the disabled employee having to be maintained on the payroll.
| Advantages for the Employee:
- You can take out motor, home, life and medical insurance, but failure to protect your most significant financial asset – your ability to work – could cause considerable financial jeopardy. DI insurance covers you for this.
- DI insurance provides a consistent source of income to meet ongoing financial obligations such as mortgages, utilities, medical bills, car repayments, children’s tuition fees and other expenditures.
- DI benefits can be integrated with retirement fund contributions to ensure that they remain uninterrupted.
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| Advantages for the Employer:
- Differentiates your company’s employee benefits programme and creates an edge over your competitors in the ‘war for talent’.
- DI insurance can be seamlessly integrated into your company’s disability/sick leave provisions and social security benefits, to avoid over-insurance.
- DI insurance is a benefit and wellbeing insurance for your employees. The continued income will assist the employee to return to work as quickly as possible, following an illness or injury.
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