2024 Complete Guide of Foreigners Buying Life Insurance in Singapore:
- 7 Reasons Why Singapore is the Preferred Insurance Hub for Foreigners and Passer-Bys
- Step-by-Step Guide of Buying Insurance in Singapore
- Common FAQs
In recent years, Singapore has increasingly become the preferred insurance hub for foreigners and passer-bys (foreigners who fly to Singapore to buy insurance). The unique advantages of Singapore’s insurance products have attracted many clients, including those from Malaysia, Indonesia, India, Australia, Hong Kong, Taiwan, Thailand and mainland China.
7 Reasons Why Singapore is the Preferred Insurance Hub for Foreigners and Passer-bys
1. Strong Currency and Economic Stability
The Singapore dollar (SGD) is a stable and strong currency, reflecting the country’s robust economy and low inflation. This stability makes Singapore an attractive destination for financial activities including insurance.
2. Political Stability and Transparency
Singapore is known for its transparent and stable political environment, which fosters confidence among investors and businesses. This political stability ensures a predictable and secure insurance environment.
3. Advanced Financial Infrastructure
The country boasts a well-developed financial infrastructure with a comprehensive range of financial products and services for your insurance needs. Its financial sector is supported by a highly regulated environment overseen by the Monetary Authority of Singapore (MAS), which ensures high standards of financial practices.
4. World-Class Financial Services
Other than insurance, Singapore’s financial services industry also includes banking, investment, and asset management, with many global financial institutions establishing their regional headquarters there. This concentration of expertise and resources enhances its role as a financial as well as an insurance hub.
5. Competent Advisers
Financial advisers in Singapore are highly competent due to mandatory qualifications and training requirements, certified annually by MAS. MAS maintains a registry of licensed financial advisers who meet its fit and proper criteria and are authorized to give financial advice.
6. Competitive Term Insurance
Singapore has some of the most competitively-priced term insurance policies in the world, often cheaper than equivalent coverage in countries like Indonesia, Malaysia, Hong Kong, Australia, Taiwan and the United Kingdom.
7. Less Stringent Underwriting Guidelines
Singapore’s underwriting guidelines may be less stringent, offering coverage to foreigners who have been rejected by insurers in their home countries.
Step-by-Step Guide of Buying Insurance in Singapore
1. Entering Singapore and Signing Documents
- The policyholder and the insured need to personally travel to Singapore with SG Arrival Card and passport.
- Your advisor arrange meetings based on the your convenience, usually at a convenient location or the insurance company’s office.
- After reaching an agreement, you sign the necessary documents.
2. Medical Examination and Opening a Bank Account
- Depending on the insurance product purchased, you may need to undergo a free medical examination at a panel clinic in Singapore.
- Some products do not require a medical exam such as medical insurance and investment-linked plans.
- For policies with cash value, you will need to prepare your tax identification number.
- Insurers will request for proof of entry – SG Arrival Card
- You can also open a Singapore bank account for future automatic payments if necessary.
3. Paying the Initial Premium
- Many of you may not have bank accounts in Singapore, for smaller initial premiums, you can pay with international credit card or telegraphic transfer.
- For larger amounts, a cheque is required.
- The entire process usually takes about a day, so a two-day one-night (2D1N) stay in Singapore is recommended.
4. Follow-up Process and Policy Activation
- Your advisor handle the follow-up process.
- Singapore’s insurance approval process is strict; life insurance approval might take 3-4 weeks, while investment and medical insurance usually take 1-2 weeks.
- Once approved, the insurer deducts the premium based on the chosen payment method, and the policy is activated.
- Softcopy of policy documents are sent to the client’s designated email address.
5. Renewal Payments
You can choose one from the following payment methods:
- Giro Auto-Deduction: Authorize the insurer to deduct the renewal premium from your Singapore bank account.
- Online Banking: Payments can be made through the “online transfer” function of Singapore banks.
- AXS Machines: Premiums can be paid using AXS machines in Singapore.
- International Cheque: Mail a bank cheque to the insurer.
6. Claim Process and Plan Maturity
- Most life insurance plans in Singapore come with a free nomination of beneficiaries, where you can specify your desired beneficiaries and their respective percentages.
- You do not need to travel to Singapore again for claims or maturity proceeds.
- Prepare the necessary claim documents and send them through your advisor or directly to the insurance company.
- If you have a local bank account in Singapore, the insurer can bank in the claim amount or maturity proceeds to this bank account.
- Alternatively the insurer will be able to pay the claim amount or maturity proceeds via telegraphic transfer to your preferred bank account in your home country (after you have submitted your bank account ownership proof).
Common Frequently Asked Questions (FAQs)
1. Is it safe to buy Singapore insurance?
- Yes, Singapore insurance is legally protected under Singapore rules and regulations.
- Singapore insurers require foreign clients to sign documents in person and provide a copy of passport and SG Arrival Card.
- This ensures the policy is approved by Singapore’s insurers and is valid globally.
2. What are the best insurance plan for foreigners in Singapore?
- Term life insurance is highly recommended for foreigners because it is price competitive and affordable in the market for maximum coverage.
- Other suitable plans are indexed universal life insurance and investment plans.
3. What is the risk of buying Singapore insurance plan?
- It is currency fluctuation risk. Singapore policies are usually settled in Singapore dollars or US dollars.
- Currency exchange rate fluctuations can affect the cash value and final returns of the policy.
- It’s advisable to choose a currency that is relatively stable against your home country currency.
Conclusion
If you are interested to find out more about your eligibility to buy an insurance in Singapore, contact me now via WhatsApp +6586802340 or Email (lidwinateo@fapl.sg).
Kindly provide your basic details of name, gender, date of birth, smoking status, and insurance/financial needs. I will provide you with a personalized insurance/financial plan.
