How important do you think disability income insurance is, now that careshield life is compulsory for those aged 30 to 40, and everyone thereafter who turns 30?

Hey Anon,

Fundamentally, Own Occupation Disabilty Income and Long Term Care (Careshield Life) are different policies that suites different insurance objectives.

Disability Income is meant for cover during your active employment years and Long Term Care usually for when you're much older.

Disability Income is for loss of income and Long Term Care would be to subsidise or defray cost of nursing.

It is also objectively easier to claim from Disability Income as compared to Long Term Care as you just have to prove you cannot perform the material duties of your occupation while Long Term Care follows the Activities Of Daily Living definitions.

However it is easy to see why lines have been blurred between these 2. In fact, with Careshield Life, you'd also be able and definitely encouraged to get the Supplementary plans to increase the benefit and possibly make it easier to claim.

It is also in my opinion that not every occupation needs Disability Income because your job isn't that physically demanding and and office bound employee may find it difficult to claim even if they're diagnosed with cancer as that doesn't actually stop them from being able to do their job for example.

But everyone would need Long Term Care as ageing is inevitable and cost of nursing is only going to get significantly more expensive with increasing labour and healthcare costs plus that we're going to be living possibly a decade longer in 50 years time than someone today who may only live till 82 or so.

So in summary, they're different. If you aren't easily replaceable due to training, education, or experience, get Disability Income and also get a Careshield Life Supplementary plan when it launches as well.