I have been asked a few times on whether there’s a need to cancel all insurance policies when one decides to work overseas a few years or to migrate (and never come back)…
My general reply to them is “No” but unless you really know what’s going on and you have more or less balance the pros and cons of terminating it… then you make your decision from there. So if you are stuck in a similar situation, I hope this blog post can help to give you a clearer picture…
Why It’s Worthwhile To Keep Your Insurance Policies From Singapore
1. You Get Coverage Everywhere And 24/7
Pros: To my understanding, your life insurance policies including those like DPS and Eldershield cover you in every countries (maybe except for those war-stricken countries where death risk is higher) and for 24/7. This means you are covered and entitled to the benefits of the plan as long as the plans are in force (means Insurance Companies are still able to deduct your premiums).
Cons: If you are working overseas or have migrated… the hassle here is that if there’s a need for claims to be done, you or your immediate family members have to go through the hassle of coming back to Singapore to process the claims. Therefore this is something to take into considerations – whether your insurance coverage justifies you to make that much effort (paying for flight, accommodations, engaging lawyers, making sure all the necessary paper documents are ready).
2. Premium Rates And Acceptance
If you have insurance coverage being accepted at normal rates (no premium loading or certain health exclusions)… congratulations! If you have bought most of your insurance plans at a young age… another congratulations!
You will need to take these two factors into considerations because if your health have changed to a certain extent and you have grown older… the premiums that you need to pay is definitely higher than what you have been paying till now. As well as your health… if you have a bit of pain, some medical history here and there… these will be taken into considerations when you apply for your next policy and different country has different views on health issues – in Singapore you may be accepted as normal for certain medical history but that may not be the case when you are overseas!
3. Benefits And Features Differ From Each Country
Depending on where you are working and where you will be migrating to… different insurance companies operating in different countries may package their plans differently. This is something you may wish to take into consideration and compare for yourself whether you can get similar or better coverage when you are over there.
If you are going to be shortchanged when you are over there… you are better off keeping your plans intact in Singapore. And given the financial security status behind Singapore and how she positions herself being a Financial Hub… you can also be assured that the insurance plans are financially secured in here as well.
If you have a chance to see around, you may even notice that some Foreigners are flying in to Singapore to help secure some insurance coverages for themselves because they trust the financial stability here. So why not you as well?
Therefore I do hope that the above reasons may help to convince you not to stop your insurance plans that you have in Singapore just because you are working overseas or you have decided to migrate. Unless you really have no choice and all the cons are weighing on you… then I guess termination is the only option!
