Welcome to Singapore! Based on my experience serving my expats and foreigner clients over the last 15years, here are
Most employers would have provided some form of medical insurance. But if the coverage is lacking, you may top-up with your own personal medical insurance. There are 2 main types of medical insurance in Singapore:
• Local health insurance / integrated shield plans: These are low cost, value-for-money medical insurance for inpatient hospitalization in Singapore, where the annual limit is $1,000,000 – $2,000,000 for admission to private or government hospitals in Singapore.
• International health insurance: Although these plans are more expensive, they are great for more comprehensive coverage like outpatient specialist, or international coverage. Also, if your dependant is on social visit pass and does not have a FIN number, you may choose this option too.
Although local health insurance plans are the cheaper option, there are some limitations to such plans, including coverage for selected outpatient cancer drugs only. Click here to read more on coverage for Cancer treatments after September 2022
Tip! Before choosing your personal medical insurance, you should check your company’s medical coverage such as:
• For admission to private hospitals, or government hospitals only
• Claim limits per year or per treatment
• Is the medical plan portable if you leave the company?
Did you know there is an economic value on your health? For example if you earn $100,000/yr and intend to work for 20yrs, you would have earned $2,000,000! But if there’s pre-mature death or illness, you would have lost this earning capacity.
There’s where a life / term plan would pay a lumpsum benefit upon death or critical illness. This would help replace your income and provide funding for living expenses, as well as pay for treatments not covered under medical insurance.
How much do you need?
For Critical illness protection, a general guide would be to calculate 5 years of your living expenses:
Eg $5,000/mth x 12mth x 5yrs = $300,0000
Read more on Income Protection for Foreigners in Singapore
Singapore has a relatively simple income tax structure. But there are ways to reduce tax payable, especially if you earn > $100,000/yr.
One of the schemes is the Supplementary Retirement Scheme (SRS), where the amount you contribute will reduce your taxable income.
For example if you earn $150,000 and contribute $30,000, you would only be taxed based on $120,000!
Not only does the SRS contribution reduce your taxable income, you can even use these funds to save and invest to grow your wealth!
Click here to find out more on how you can Save tax & Invest the smart way using SRS
Singapore dollar is fairly strong, and even with USD appreciating this year due to Fed hiking interest rates, it remains resilient. That is why many foreigners hold Singapore-dollar assets in insurance and investment products to grow their wealth. Singapore dollar may become rare global winner as MAS tightens
Click here to read more on 4 ways to Grow your Wealth for foreigners in Singapore
If you have been working in Singapore for a few years, you would have accumulated assets such as:
• Local bank account(s)
• Insurance policies
• Investments
As your family members are likely to be residing overseas, it’s best to ensure your assets can be transferred to your loved ones in a quick and efficient way.
Nominations
The easiest (and free) way would be to do nominations for your insurance policies (where applicable). This will ensure your loved ones can access the payouts within 4-6 weeks upon your passing.
Will
Do consider setting up a Will in Singapore to take care of your Singapore assets like bank accounts and investments.
This would enable you to appoint your preferred Executor and choose your beneficiaries.
Without a Will, it will become a costly and complex legal matter to determine your domicile and laws of intestacy.
I will be posting weekly content with more details on the above, do subscribe to my content if you wish to receive them!
Meanwhile if you have any questions on financial planning, do email me at winniechan@fapl.sg or drop me a message
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Winnie Chan is a distinguished Certified Financial Planner (CFP) with over a decade of expertise in financial advisory services. Her commitment to her clients has led many to achieve their financial aspirations while ensuring their families’ protection. Winnie‘s extensive experience in insurance claims has been instrumental in securing successful payouts, providing crucial financial relief during challenging times.
Her passion for community engagement is evident through her financial education initiatives. She has conducted insightful financial talks for esteemed organizations such as Carousell Group, Singapore National Eye Centre and Singtel, empowering their employees with valuable financial knowledge.
Outside of her professional commitments, Winnie balances her life with a passion for fitness and music. She enjoys rigorous workouts at the gym and is a pianist, recently awarded ABRSM Piano Performance Grade 6 (Merit).
