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Total and Permanent Disability (TPD) Insurance.

Thursday, September 7, 2017

Won't you be also concern for yourself? The TPD part.
Medical is already covered for everyone aka Medishield.
I believe most people say not afraid to die, but afraid cannot die.

Why should I be concerned?

Sick and disability. I imagine this 2 are for everyone to think about. Sorry I don't mean to pry. But sought your thoughts on what's necessary to insure for own self. If not necessary one then don't have to pay for it.

If we have dependents, we need life insurance. Buy term. We also need the following:

For hospitalization, H&S.
For critical illness, CI insurance.

If you are still reliant on your earned income, then, TPD coverage is relevant to you.

It is relatively costly but it will give you peace of mind while you are building your portfolio or until you are able to tap your CPF savings.

The insurance agent out there won't really think for customers. We have to be our own agent. But sometimes can't get the "logics" yet. Thank you again.

Best insurance is still: THIS

Of course, not everyone is able or willing to be an investor. 

For many people, building up their CPF savings is probably the best way to bolster retirement funding adequacy.

For them, if a meaningful lump sum is available for withdrawal from their CPF account at age 55, having TPD coverage till age 55 could be sufficient.

Otherwise, some amount of TPD coverage till age 65 is probably a better idea as the earliest CPF Life would start paying a monthly income for life is at 65 years old.

Whether we need TPD coverage and to what age we need it will depend on when we will be able to work when we want to and not because we need to.

Yes, if you are a regular reader of my blog, this should sound very familiar.

Related posts:
1. Term Life.
2. H&S (Medishield).
3. Critical Illness.
4. Eldershield.
5. CPF Life.
5. Start with a plan...
6. Work because we want to...


AK71 said...

David Poh:
wow this is like the ebook for insurance!

And it is FREE of charge!
Only found in ASSI... :p

Spur said...

Personally, I feel that CI insurance is also optional if no longer dependent on job for living expenses. It becomes very expensive after 60 yrs old. Even for wholelife with CI coverage, the expensive charges are front-loaded and deducted more in the earlier decades. That's why the savings yield for wholelife (and endowments) are much worse compared to those 20 years ago (when CI claims were much lower).

For TPD, as long as you're still able to think & communicate coherently, still not too bad. E.g. I'm sure Stephen Hawking would qualify for TPD payout (if he could have been approved for one in the 1st place).

With sufficient passive income, you can still check into a private or semi-private nursing home, if you don't have any relatives to help look after you. Or if you have relatives, the passive income will come in handy to employ helpers, refit the house, etc.

The problem comes when your mental faculty is impaired. How to analyse company earnings & quarterly reports when even basic bank account handling may be beyond one's ability?

That's when have to hope the Office Of Public Guardian can be alerted & come in & partner with govt-supported organisations such as Special Needs Trust Company Ltd.

AK71 said...

Hi Spur,

I agree. This is why I share, time and again, what I feel is the best insurance in life in my blog.

Self insurance. Nothing beats this. :)

laurence said...


Prepare for battle. A war might be coming your way. Lol.
Read this:

Anonymous insurance agents declare war on financial blogosphere !!!

AK71 said...

Hi Laurence,

There are spurious arguments aplenty.

We can only hope that good reason will prevail. :)

AK71 said...

See also:
Without CI coverage, could we become a burden?

AK71 said...

From my YouTube channel.

Reader asks AK:
Hi Ak, understand from one of yr blog that we shouldn’t buy life insurance for the kids(as they have no dependents). But should we at least buy at term plan to cover death, tpd and CI?

AK says to reader:
I am pretty consistent when it comes to the subject of insurance. For kids, the most important would be medical insurance. Hospitalization & Surgery. So, they should at least have Medishield Life tagged to their parents', I believe. Critical illness coverage for kids? Hmm. If we are super kiasu, maybe.😅 They don't have dependents and don't need death benefits and benefits in case they are temporarily disabled. They don't have earned income to replace. 🙂
Some relevant blogs:



Link to AK's YouTube channel:
Comment in this YouTube video.

Yv said...


I am thinking whether it would make sense to purchase personal accident coverage for my mom who's in her 70s. At their age, very prone to fall and related injuries, but not to the extent of TPD. Makes sense?

What is your take also on enrolling her into the Care-shield Life especially given increasingly rising health care cost?

AK71 said...

Hi Yv,

I think if they should be injured due to falls and needed to be hospitalized, that would be covered by their H&S shield plans.

I think personal accident (PA) plans are a waste of money unless we are not well covered by term life policies because PA plans are usually very cheap and can provide an extra layer of coverage in case death is due to an accident.

As for Careshield, you are in luck because I published a blog on the topic in 2021:
Should I enroll in Careshield Life?

Just talking to myself, of course. ;)

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