What Is Covered In A Disability Insurance Policy In Hong Kong?
A disability insurance policy is one of the most ignored among the other insurance policies available in the market. According to an article published by the South China Morning Post, Manulife conducted a research in 2005 and it revealed how few people in Hong Kong are getting disability insurance. The study of the insurance company revealed that few people recognize the importance of this type of insurance. This is something that alarms them because a disability can seriously compromise your ability to work. The concern of the company is mainly for breadwinners. If something happens to the sole breadwinner of the family, this can spell trouble for the household.
This is the main reason why you need to view a disability insurance in a more valuable light. You cannot ignore the fact that accidents happen and that can leave you unable to work for a living. If that happens, will you just rely on the disability allowance that you can get from the government? According to the data published on PolicyAddress.gov, the expense that the government has for disabled residents have increased by 50%. While there are ongoing support programs for those with disabilities, we are certain that it will not be enough to provide your family with a comfortable life. How can you survive despite your disability?
What is a disability insurance?
The truth is, all disabled individuals eventually learn how to live with their limitations. However, that does not justify the suffering that you or your family will have to go through. This is why a disability insurance is very important at this point. You have to understand that this involves more than your own protection. You also have to think about the people who are relying on you.
You may be wondering – isn’t this something that an accidental benefit can cover? In some cases, that is true. But there are a few differences when you compare an accident plan with a disability insurance.
An accident insurance usually provides a lump sum money that will cover the costs associated with an injury. This is usually for any medical payments to help you get better after an accident.
How does disability insurance work?
A disability insurance policy works in a more lasting manner. You can choose a short-term or a long-term disability policy that will replace your income as you are trying to recover from your disability. A short-term policy is enough for a disability that is only temporary. For instance, if you broke your leg, it will be hard for you to move around and go to work. That means you are temporarily disabled. However, if the injury is permanent like the loss of a limb or either a sense of hearing or sight, a long-term disability is the best option for you. It is possible for your policy to transition into a long-term one if the coverage allows it.
In most cases, you need to pay attention to the definition of disability in the policy. The claims will certainly vary depending on the severity of the disability. These are the disabilities that can be covered by this policy.
- Loss of limb (arm/s or leg/s)
- Loss of sight (one or both eyes)
- Loss of hearing (one or both ears)
- Paralysis
Any injury that causes you to lose the ability to move or work completely, that is considered a disability and can qualify you to get claims.
There are instances wherein the disability insurance policy will not qualify you to get a claim. For instance, if it is caused by a self-inflicted injury, an act of war, military/police of fire operation, or a chemical exposure. This will depend on the type of policy that you will get.
Three ways you can get a disability plan in Hong Kong
There are three ways that you can get a disability insurance policy in Hong Kong:
As a standalone insurance policy.
The first option is to get it as a standalone policy. This means you will get an insurance that specifically provides you with benefits if you become disabled. Take for instance the Manulife Disability Protection. This insurance policy will insure your income in the event that your disability makes it hard for you to earn a living. The policy covers both temporary and permanent disabilities. It is possible for you to waive your premium in case you become totally disabled or even with death. Unlike other policies, Manulife also offers a refund feature for the Premier Income Protector. This plan can give you up to HK$3.6 million worth of income protection benefits.
As a part of another insurance.
The next option to get a disability insurance policy is by including it in another insurance. HSBC offers a life and endowment policy that includes coverage in case of disablement. Some insurance policies will include this coverage as part of a comprehensive health insurance. FWD, on the other hand offers it together with their accident insurance plan. You can get up to HK$1 million if the accident occurs in a public transport or a public building. Not only that, you can also get HK$1,000 weekly allowance in the event of a hospitalisation that lasts more than three days. If you think that getting a disability insurance as a standalone policy is too costly, you have several options to combine it with another insurance that you think is more likely that you will use.
As an employment benefit.
Finally, you have the option to get this policy as a part of your benefits in the workplace. This will be taken out by the company you belong to but it will be named after you. For instance, FWD offers a Group Long Term Disability Insurance to companies with at least 4 employees. This coverage is provided even until the age of retirement – 65. Of course, the policy will only be in effect as long as you are a part of the company. Another option is from AXA that provides benefits for total disability. This will cover disablement provisions for as long as the employee is unable to work because of the disability. The company provides the option for an escalating benefit that will increase the coverage according to the inflation rate.
You can choose any of these options when getting a disability insurance policy. Make sure that you analyse your specific situation so you will understand the coverage that you need in your insurance policy. If your job puts you in danger of an accident, then combine your disability policy with an accident insurance. In case you feel like a disability insurance will suffice, then that is all you really need. Just remember that the bigger the coverage, the higher the premiums. So consider your options carefully.
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