All You Need To Know About How Insurance Policies Function For Expats in Singapore
Singapore has a well-regulated financial industry, pro-business stance and stable currency and government. Due to this, many people set up their businesses in the country. Singapore is also known for its world-class healthcare hub and educational system with the use of the latest equipment, techniques and treatments.
Many expats visit and settle in the country in search of job opportunities or for higher education. If you are one of them, it is advisable that you purchase health insurance and other insurance policies to coveryourself financially againstany unforeseen circumstances while living in country with high standard of living.
Here are some useful information before you sign up for insurance in Singapore:
Rising medical cost
As per a Sunday Times article, there was a significant rise in Singapore’s national health expenditure which had almost doubled from $10 billion in 2010 to $21 billion in 2018 and is projected to triple to $59 billion in 2030.As such, having a health insurance policy is essential to cover the high medical costs. This saves a lot of expats from facing financial struggles against expenses that may arise from unforeseen medical contingencies.
Personal data protection
Consumers’ personal dataare well protected by laws and regulations in Singapore. It is mandatory for organisations in Singapore to comply with the Personal Data Protection Act (PDPA). Insurance companiesin Singapore have the right processes and mechanisms in place to ensure personal data of their customers areprotected. This is even more evident now as many insurance companies are moving towards digitalisation and providing the option for consumers to purchase insurance online. As a consumer, you have the assurance that your personal data is kept safe and used appropriately.
Signing up policy
Expats travelling to Singapore are required to sign up their insurance policies in Singapore. Therefore, you may wish to read up on the various type of insurance available in Singapore beforehand. There are many types of life insurance namely term life insurance, whole life insurance and endowment life insurance. For expats who stay in Singapore for a period of time, a term life insurance plan wherein the individual can select the coverage period, typically from 5 to 35 years is one of the most suitable plan that is worth considering.
Governed by a regulatory body
Insurance activities are regulated by the Monetary Authority of Singapore (MAS).The MAS is responsible for the licensing, authorisation and supervision of insurance activities. There are various risks that insurance companies undertake while functioning on a daily basis. In worst case scenarios, these risks can force the insurance company to go into bankruptcy and unable to fulfil insurance claims. The regulatory body is here to preventsuch circumstances fromtaking placeby ensuring the insurance company maintains insurer solvency.
Financial consultant certification
In Singapore, financial planners or adviser are licensed and regulated by the MAS. Advisers are required to fulfil a set of basic requirements and pass the requisite modular examination before they can be employed by insurance companies to carry out advisory services. To cope with the changing times and maintain a high level of customer service, most insurance companies provide continuing professional development to their financial advisers on a regular basis.
Being an expat and away from your familiar home can be nerve-wrecking yet exciting at the same time. Do remember that purchasing insurance policies in the new country that you are settling down for the next few years is important and can be very convenient if you have the right information on hand. There are numerous insurance companies providing various type of insurance policiesthat suit your needs and requirements. It is important to read all the details of the policy carefully before purchasing an insurance policy.