I'm not sure of you knew AIA's Premier Disability Cover caps the sum assured to 70% of income. This isn't mentioned on the product summary....
It's 75%, and it's mentioned
right here, practically at the top.
That being said, Aviva's IdealIncome caps at 75%, slightly higher, SAF/MHA rider caps at 50% (pretty much pathetic IMO). Where does GE caps it?
Great Eastern is 75%, also mentioned
right up front.
Having 50% income replacement is better than zero. If you want 75%, I don't know any reason why you cannot stack policies. You max out the MinDef/MHA rider, then add 25% from one of the other three -- that works, assuming you're OK with the individual policy terms/conditions. (Easiest to do with Aviva, perhaps, since they're the underwriter for the MinDef/MHA rider.)
Back to my question to you previously, for one who makes an income of $3.5k, he could only purchase up to $2450 with AIA. So if he gets paid for partial disability and assuming he goes back to work and manage to earn a lower income of $2k due to his partial disability, AIA pays $450/per mth...
For this reason I'd personally put focus on my disability on a PA plan instead.
No, that logic does not make sense. PA plans are chock full of holes. Get a stroke, become disabled, get zero. Bad, very bad. PA plans are stupid, really. Yes, maybe that's "controversial," but it happens to be true.
People don't like gambling, generally. Having 100% (or 120%) all risks income replacement would be lovely, but there's moral hazard in that, so it's not possible in a private insurance market. Having 75% income replacement is. If you THEN want to play the risk lottery/casino and "top up" with Personal Accident "insurance," hoping that if you become disabled it's because a bus ran you over rather than something random in your head, I guess you could do that. But if you can't work, you can't work. Protecting against that risk, no matter what the cause, is important. Protect that way first, if you can.
By the way, there's no guarantee of 100% income from work. You can be fired at any time. Wages can go up, and they can go down, too. All of the disability income insurance policies mentioned tolerate some bouts of unemployment, usually up to 180 days. One limitation I don't like is that they all exclude stints working outside Singapore, or at least they reserve the right to. The MinDef/MHA policy has a firm "no" when it comes to working outside Singapore -- the coverage ends, full stop, if you do that. The others say, basically, "You must let us know, and we might have a problem with it." I don't like that lack of international portability, and unfortunately it's a common defect around the world and across many lines of insurance.