Insurance Plan For Expatriates In Singapore

Safeguard your family’s income and lifestyle against financial loss in the event the unexpected occurs. With the right combination of life insurance and protection plans, you are assured peace of mind, knowing that your loved ones can maintain their quality of life during or after an unfortunate event.

Life presents many unforeseen situations and when death strikes unexpectedly, your family could be left in dire straits. Life Insurance provides a guaranteed death benefit to protect your dependants against financial loss upon the demise of the life insured. Guard your loved ones or beneficiaries with a plan that will provide for them comfortably long after you are gone. The proceeds from the insurance can be used towards a future college education, clearing off debts or any other expenses, thus removing the financial burden from your family.

There are 3 main types of life insurance plans:

Whole of Life (Permanent) Insurance

A ‘Whole of Life’ Insurance provides life-long protection as premiums can be made throughout your lifetime. Upon death or in the event of total and permanent disability, the policy may pay out the greater of the sum insured or if applicable, the value of any underlying investment values.

Sample Cost: 5-Year Term
For a male, age 30, non-smoker with a sum assured of $1,000,000, the typical premium prices could range from $600 to $2,500 per annum depending on the insurance provider.

Level Term Assurance

A Level Term Assurance provides protection for a fixed time period. A Term policy may pay out the sum insured upon death within the term.

Decreasing Term Assurance

A Decreasing Term Assurance provides a death benefit that decreases at a predetermined rate over the life of the policy. The premiums are usually constant throughout the contract, and reductions in the policy pay-out will typically occur annually. This may also be called Mortgage Life Insurance.

With the rising costs in health care, getting yourself a Health Insurance plan ensures you and your family are financially protected in the event extensive medical care is required as a result of an accident, illness or disability. Health Insurance usually provides coverage for medicine, consultations with doctors, visits to the emergency room, hospital stays and other medical expenses.

Although many people receive Health Insurance from their employers, it is important to check what the coverage is and if it is sufficient. With the many different plans available, it is essential to pick a policy that will meet your protection needs.

Local Health Insurance

Medical Expense Insurance / Major Medical Expense Insurance

Medical Expense Insurance covers medical expenses arising from an accident or illness. The policy typically includes inpatient medical treatment or surgery, some outpatient charges for day surgery and consultations with specialists. The Major Medical plan offers wider coverage with higher maximum benefit over a standard plan and is designed to protect against losses from catastrophic illness or injury.

Hospital Cash Insurance

Hospital Cash Insurance typically pays out a fixed amount of benefit each day you are hospitalised for medical treatment or surgery.

Long Term Care Insurance

Long Term Care plans most often pay out a monthly fixed amount towards expenses for long term nursing care when you are unable to perform daily activities. There is no age limit for this type of coverage.

International Health Insurance

International Health Insurance policies are designed for those who spend a significant portion of their time working on overseas assignments. International Health plans provide more comprehensive coverage compared to local plans and are internationally mobile, allowing you to live and seek treatment anywhere in the world.

Some of the typical benefits offered:

Parent Accompaniment
An important component for expatriates with children, the Parent Accompaniment benefit allows you to accompany your child in the event of an emergency evacuation, covering accommodation and travel expenses.

Emergency Evacuation
Emergencies can happen anywhere. In the event you and your family fall ill and local facilities prove to be inadequate, an airlift to the nearest appropriate medical centre becomes highly crucial.

Pregnancy Cover and Routine Complications
If you are planning to start a family while out on assignment, a Pregnancy policy could help cover the costs of maternity and childbirth care.

Road Ambulance
This benefit covers ambulance services in the event of an emergency.

Critical Illness Insurance reduces your financial burden when diagnosed with one of the specified critical illnesses or disabilities during the period of coverage. The Critical Illness plan is usually effected on a stand-alone basis or included as an optional benefit (also known as a rider) to a life insurance policy.

The payable sum under a stand-alone Critical Illness plan typically includes a clause known as a Qualifying Period. A qualifying period states that in order to be eligible to receive the sum assured, policyholders must survive for a predetermined length of time, which typically ranges between 7 and 30 days from the date of diagnosis of their specified critical illness.

When a Critical Illness plan is included as a rider on a life insurance policy, the policy normally pays out an accelerated guaranteed lump sum immediately upon diagnosis without the need for a qualifying period.

Since 1st July 2003, the Singapore insurance industry has adopted common definitions for all critical illnesses as defined by the Life Insurance Association (LIA) of Singapore. This means that all Singapore-authorised insurance companies will define each illness covered the same way.

For plans taken out prior to 1st July 2003 or effected in other jurisdictions, reference should always be made to individual policy documents for definitions of the critical illnesses covered.

Most people recognise the need to save and build wealth for their future key lifestyle needs and goals (retirement, saving for their kid’s education, buying property, cars, holidays etc.) However, many people overlook the protection of the factor most key to this…..our own ability to earn a living for ourselves and our families.

Income Protection can be used to help bridge the gap when illness or injury stops us from doing our key function, providing an income for ourselves and our families.

Whilst life insurance provides for your family when you are gone and critical illness/dread disease insurance pays out if you are unfortunate enough to suffer and be diagnosed with one of thirty defined ‘critical illnesses’; neither perform the role of income protection should you not die or be prevented from doing your job by reasons other than death or critical illness.

This is where income protection has an important role to play: Most employers will only continue to pay their employees for a fixed period e.g. 6 months, if they are incapacitated and unable to perform their employment duties. However, the statistics regarding the number of people that are prevented from earning a living (due to illness or injury) is far greater than many realise. Many also do not realise the severity of the strain it can put on both the financial and emotional well being of the individuals and families involved.

The cost of obtaining income protection is often minimal compared to the cost of not having adequate income protection cover.

Insure your most valuable asset: Your ability to earn an income!