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Old 29-12-2017, 12:09 PM   #11
BBCWatcher
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Join Date: Jun 2010
Posts: 12,725
If and only if your company keep you even after 2 legs are gone and at pay higher than the level set in DII.
That's not quite right. DII sold in Singapore includes coverage for both partial and full pay loss due to disability.

I believe the way it works is as follows. Let's suppose you're paid $5,000/month pre-disability, and you have a $3,500/month DII policy (70%, the maximum allowed). You become disabled, you go back to work, but your work is impacted due to the disability. Thus your employer will only pay you $3,000/month because of your diminished capacity to perform the work tasks they expect. So you've lost $2,000/month. Your coverage is for $3,500/month (more than the income loss), so DII should top you back up, all the way to $5,000/month in this example.

The 70% figure in this example is the minimum income flow you'll get if you're disabled and unable to work. It's not the maximum, if you're disabled and have a partial loss of income. At least, that's how I understand this policy to work. And it makes logical sense, because the insurer really wants you back at work, to help reduce their payouts. If the insurer pays $2,000/month instead of $3,500/month, that's good news. And if/when your employer raises your salary back up to $5,000/month (this example), or closer to $5,000/month, the payouts correspondingly tail off. Also, if you're back at work, you're more likely to stay back at work. This is all good news for the insurer, so they really want to encourage you to get back into the labor force. That's why the partial income loss coverage is a key element in DII.

Last edited by BBCWatcher; 29-12-2017 at 12:11 PM..
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