Insights from survey led to creation of AIA Pay Protector; first in market to offer a simplified disability income plan which provides fixed monthly payouts regardless of any sources of income received during disability and any changes to insured's income level prior to disability, and claimable upon inability to specifically perform own occupation 

 

SINGAPORE, 18 MAY 2022 – While two-thirds (66 per cent) of Singapor's local workforce are worried about job loss due to illness or disabilities, more than half (53 per cent) do not have any disability income protection, according to findings from the AIA Disability Income Survey 2022.

 

The survey, conducted in April 2022 amongst more than 1,000 respondents¹ consisting of full-time working Singapore Residents aged 18 and above, also revealed that:

 

Melita Teo, Chief Customer and Digital Officer, AIA Singapore, said, "Losing one's job and becoming dependent on others due to an unexpected accident or illness is painful and places heavy financial and emotional burdens on a person and their loved ones. Understanding the pain points of disability income plans allows us to better address Singaporeans' concerns which range from affordability, to ease of getting insured and making a claim. These are key priorities which informed how we developed the AIA Pay Protector to make disability income protection accessible to even more members of the community"

 

In 2021, a Ministry of Manpower (MOM) report noted that workplace injuries have risen to pre-covid levels, with construction, transportation and storage sectors accounting for the highest number of fatalities . The gap in disability income protection is a cause for concern, especially among blue-collared workers who are at a higher risk of disability due to the nature of their work.

 

 

Designed with insights and feedback from customers and AIA Insurance Representatives, the AIA Pay Protector addresses key concerns and barriers around product complexity, vague definitions, and claims uncertainty arising from declaration of earnings and income fluctuation.

 

Customers can select their desired fixed monthly payouts from a range of $1,000 to $5,000⁵ where benefits will be paid out for up to 5 years⁶ in the event where they are unable to perform material duties of their own occupation due to illness or disability (physical or mental).

 

With fixed payouts, claim processes are streamlined and become more efficient due to the elimination of calculation when claims are eventually made.

AIA Pay Protector also provides payouts in the event of job loss due to mental health conditions, paving the way for destigmatising mental health within the workplace.

 

This echoes the growing focus on mental health and well-being amongst Singaporeans as they emerge from a prolonged pandemic. As a leading insurer, AIA Singapore recognises the need for the inclusion of mental health in different types of insurance coverage, and as a reason for job loss across occupations. In 2019, AIA Singapore is the first insurer to cover mental health in its critical illness plan, AIA Beyond Critical Care.

 

Irma Hadikusuma, Chief Product Proposition Officer, AIA Singapore, said, "It is important for us to recognise and help people address their protection gaps with simple, innovative solutions. The pandemic has accelerated the need for greater financial independence - regardless of whether you're single or have a family to care for. AIA Pay Protector responds to this demand by promising continuity of this independence with certainty of income in the short term for the unexpected event of job loss due to mental illnesses or physical disabilities."

 

Customers who are keen to apply for AIA Pay Protector can do so directly from My AIASG app or contact an AIA Insurance Representative. The hassle-free application process includes a simple medical history questionnaire that customers can fill out on their own. Customers are neither required to disclose their actual income amount nor submit their payslip in the process of application via our digital direct sales platform.

 

For more information on AIA Pay Protector, and AIA's comprehensive disability proposition, please visit: https://www.aia.com.sg/en/our-products/disability-income-protection/aia-pay-protector.html⁷

¹ The AIA Disability Income Survey 2022 was conducted in April 2022 with a total of 1004 Singapore Residents – Singaporeans and Permanent Residents working full time.

 

² Example: A customer, 40 years old, earns S$4,000 as a Telco Customer Service Officer. To protect his livelihood from unexpected illness or injury, he takes up AIA Pay Protector with a monthly income payout of S$3,000. One day, John suffers a rare viral condition that leads to vocal cord paralysis, causing him to lose his ability of speech and subsequently his job. Upon disability, the plan pays him S$3,000 monthly benefit (i.e. the coverage he bought). The following year, despite his disability he managed to find a new job as a Data Entry Clerk that pays him S$1,500 a month. The plan continues to pay him S$3,000 monthly benefit (i,e no offset of any income).

 

³ Example: A customer's income was S$5,000 at the point of purchase of the AIA Pay Protector plan and his sum assured is S$3,000 (monthly benefit). A few years later (prior to disability), his income declined to $2,500. Upon disability, the plan still pays him S$3,000 monthly benefit (i.e. the coverage that he bought) regardless of his income level prior to the disability.

 

⁴ 'Workplace injuries in the first half of 2021 comparable to pre-COVID-19 levels, but fatal accidents a 'cause for concern': MOM' (8 Oct, 2021). Channel News Asia. Ian Cheng. Available at: https://www.channelnewsasia.com/singapore/workplace-injuries-first-half-2021-pre-covid-19-levels-mom-2230331

 

⁵ Customers can pick and choose the fixed monthly payout they would like to receive from 5 packages, where monthly benefit is fixed at $1,000, $2,000, $3,000, $4,000 and $5,000, subject to 75% income replacement ratio of their average monthly income in the last 12 months.

 

⁶ Subject to a 90-days deferment period.

 

⁷ This insurance plan is underwritten by AIA Singapore Private Limited (Reg. No. 201106386R) ("AIA"). All insurance applications are subject to AIA's underwriting and acceptance. This article is not a contract of insurance. The precise terms and conditions of this plan, including exclusions whereby the benefits under this plan may not be paid out, are specified in the policy contract. You are advised to read the policy contract. You may wish to seek advice from an AIA Financial Services Consultant for a financial analysis before purchasing this policy. Should you choose not to seek advice from an AIA Financial Services Consultant, please consider whether the product is suitable for you, and you take responsibility to ensure that this plan is appropriate to meet your financial needs and insurance objectives. You may wish to terminate the policy according to the free-look provision if you find that the policy is unsuitable after purchasing it, and AIA may recover from you any expense incurred in underwriting the policy.
Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs. You are discouraged from switching from an existing accident and/or health insurance policy to a new one without considering whether the switch is detrimental, as there may be potential disadvantages with switching. A penalty may be imposed for early policy termination and the new policy may cost more or have fewer benefits at the same cost.
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The information is correct as at 18/05/2022.