What do statutory life and disability benefits cover?
Life benefits in Singapore are provided for through the Central Provident Fund (CPF). The benefit provided is based on the total value of the employee’s CPF fund.
Long-term disability benefits are also provided by the CPF. An employee must qualify for these benefits by being evaluated as unable to work as a result of serious or terminal sickness. The payment of these benefits can come from the Dependants’ Protection Scheme.
ElderShield is another scheme that employees are automatically enrolled in when they turn 40, although they may opt out. This scheme provides long-term disability protection and can pay for up to 72 months of benefits. For more information on ElderShield, please see this website.
What life and disability benefits do most employers offer?
It is typical for employers to offer supplementary life insurance in the amount of 1 or 2 times the employee’s annual salary.