CMFAS HI Disability Income & Long-Term Care question: limitation of disability benefit clause reduces the DII benefit

CMFAS HIDisability Income & Long-Term Care

A limitation of disability benefit clause reduces the DII benefit by other income the insured receives. Which of the following is specifically NOT deducted?

A Payments from another disability insurance policy
B Work Injury Compensation Insurance payments
C The Total and Permanent Disability benefit paid under a Life Insurance policy
D Continuing salary from the occupation the insured had just before disability

Show the answer and explanation

Answer: C. The Total and Permanent Disability benefit paid under a Life Insurance policy

The limitation clause caps the total so the insured is not over-insured, reducing the DII benefit by other disability policies, Work Injury Compensation, and continuing salary — but it expressly excludes the TPD benefit under a life policy from the deduction.

Common mistake

TPD under a life policy is the carve-out; the other three income sources are deducted.

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Related CMFAS HI questions

Eddy was insured for a total disability benefit of S$6,000 a month (75% of his S$8,000 salary) with a 3% per annum escalation benefit. After a full year of continuous disability his benefit escalated, and he then returned to work in a new job paying S$2,000 a month. Applying the standard partial disability formula to the escalated benefit, his monthly partial disability benefit is Mr Segar is certified severely disabled and wishes to draw MediSave Care cash. At the point of withdrawal his MediSave balance is S$8,000. His maximum monthly cash withdrawal is Comparing ElderShield and CareShield Life, which statement is accurate?

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Original study material mapped to the public CMFAS HI syllabus. Unofficial, not endorsed by MAS or SCI. Verify figures and rules against current guidance before relying on them.