Insurance planning and migrating

[mousepad_88]

Hi there. I am using the forum to seek the opinion with regards to my insurance policy and my intention to migrate in the near future to Australia.(5-10 years).
I currently am covered under the following insurance plans:

1.Group Term Life
2.Group Personal Accident
3.Group Living Care
4.Group Living Care Plus
5.NTUC Integrated Shield Plan

Q1. My question is do i need to relook and change my existing insurance policies when i have the intention to migrate to another country?

Also, my spouse to be(getting married next year) is an Australian and i am looking to look into her insurance coverage and see what else she is lacking. She is going to stay and work here in the near term(5-10 years) but we will migrate back to her home country eventually.

Q2 .Is there difference in planning for insurance when one spouse is a foreigner and is working in Singapore for at least 5-10 years? I am just afraid especially if i sign up for insurance plan for her and it will not be applicable if say we migrate out of SG.

Q3. Is there anything i need to take note of when planning insurance coverage for my situation?

Hopefully i can get some insight from the experts here to assist in my situation.

 

[JuniorLion]

I'm not an insurance agent/financial advisor, so here's what I think. For what it's worth.

Your policies are mainly Term so I guess it is fine. I suppose you can continue your term policies even if you have migrated to Australia. When there's a need, you should return to Singapore to settle the claims.

You should also cover your spouse with the same cover you have, mainly all the term policies + Integrated Shield Plan. Again, when needed, you can return to Singapore to seek treatment and be covered until the Shield Plan.

I'm not too sure about Australia's coverage and medical treatment, so that's all I can say.

 

[BBCWatcher]

I currently am covered under the following insurance plans:
1.Group Term Life
2.Group Personal Accident
3.Group Living Care
4.Group Living Care Plus
5.NTUC Integrated Shield Plan

I think you’ve got some problems here, one in particular. Any reason(s) why you didn’t prioritize Aviva’s Group Disability Income Insurance (DII) over 2, 3, and 4?

You don’t need life insurance of any sort when you don’t have dependents, but now you’re engaged, and so now you do, presumably.

Q1. My question is do i need to relook and change my existing insurance policies when i have the intention to migrate to another country?

Yes, absolutely.

Also, my spouse to be(getting married next year) is an Australian and i am looking to look into her insurance coverage and see what else she is lacking. She is going to stay and work here in the near term(5-10 years) but we will migrate back to her home country eventually.

You make it sound like you’ll be packed in her suitcase. Seriously, congratulations.

Q2 .Is there difference in planning for insurance when one spouse is a foreigner and is working in Singapore for at least 5-10 years? I am just afraid especially if i sign up for insurance plan for her and it will not be applicable if say we migrate out of SG.

Yes, but it’s not too different from your situation.

First of all, it’d be wise to get a Pre-Marriage LTVP Assessment for her (assuming you’re a citizen), then get her switched over to a LTVP (with Letter of Consent if she’s working in Singapore) immediately after you marry — and you may wish to get married legally while having your whatever wedding ceremony/party you wish any time you wish. Then for her to apply for Permanent Residence after a couple years of getting married. Stabilizing her immigration status in Singapore is still important, even if you plan to relocate together to Australia 5 to 10 years from now. As soon as she’s on a LTVP (which happens really quickly if she has a “thumbs up” on the PMLA), a few more insurance choices are available, notably Integrated Shield coverage. (Although I’m not a fan of NTUC’s Integrated Shield plans specifically, so she ought to shop around.)

You are both likely to have some territoriality problems in insurance policies, so you want to read the policy letters very carefully. Also, when you’re living permanently (the plan) in Australia, your insurance needs to be protecting and defending an Australian outcome. As a notable example, while Singapore dollars are convertible to Australian dollars (and then to an Australian lifestyle), the exchange rate varies. That’s not ideal when trying to assure some result in Australia.

Q3. Is there anything i need to take note of when planning insurance coverage for my situation?

Step 1 is to understand what you really need for insurance within the current Singaporean and then Australian context — what are genuine insurance necessities. In my view that’s pretty simple: term life insurance (to the extent one of you is dependent on the other, and vice versa), disability income insurance (DII), and some medical insurance (to protect against big hospital bills primarily), which includes some travel medical insurance if/when you venture outside your home country. (Note: Not “travel insurance,” which is not an insurance necessity. Travel medical insurance is the part that’s important, which includes medical repatriation/evacuation.) After that, you could very well be overinsuring.

I suppose you can continue your term policies even if you have migrated to Australia. When there's a need, you should return to Singapore to settle the claims.

Well, that doesn’t work very well when it’s term life insurance and your spouse is trying to make the claim from Australia, for example. It’s unlikely there will be a problem shopping around and obtaining term life insurance in Australia when the time comes. I think that part is going to be quite easy.

You should also cover your spouse with the same cover you have, mainly all the term policies + Integrated Shield Plan. Again, when needed, you can return to Singapore to seek treatment and be covered until the Shield Plan.

No, I disagree with that, and in a couple ways.

First, life insurance coverage might vary. Let’s suppose for example that you have a non-working spouse. You would be profoundly sad if he/she were to predecease you and at a much too young age, but you’re not necessarily financially dependent on him/her. (You might be, even with a non-working spouse. For example, you might have children that he/she is caring for, and you would struggle financially to care for your children if he/she were not around.) Coverage decisions and levels should be decided separately for each spouse, and they often vary.

It really doesn’t make sense for someone without a right of abode in Singapore to maintain regular medical insurance in Singapore. I don’t see any merit in that with respect to Australia. Australia is not Afghanistan with questionable medical care standards (another country beginning with the letter A). Singaporean citizens are required to maintain at least MediShield Life for at least 5 years after leaving Singapore, since there is a possibility of return. (PRs must maintain at least MSL for as long as they’re PRs.) I would recommend dropping coverage down to a public hospital B1 ward plan for a little while (and not necessarily go any higher than that while living in Singapore for that matter), then see how it goes.

As mentioned, the Australian dollar is not the Singapore dollar, so there’s going to be some loss of “insurance efficiency” associated with currency that’s not helpful if changes aren’t made.

And many insurance policies have territoriality, so you have to read the policy terms and conditions carefully. Term life insurance is probably going to be OK, but the other insurance products are often quite sensitive to country of residence, at least before too long.

I'm not too sure about Australia's coverage and medical treatment, so that's all I can say.

It’s a very good system.

 

[mousepad_88]

I think you’ve got some problems here, one in particular. Any reason(s) why you didn’t prioritize Aviva’s Group Disability Income Insurance (DII) over 2, 3, and 4?

You don’t need life insurance of any sort when you don’t have dependents, but now you’re engaged, and so now you do, presumably.


Yes, absolutely.


You make it sound like you’ll be packed in her suitcase. Seriously, congratulations.


Yes, but it’s not too different from your situation.

First of all, it’d be wise to get a Pre-Marriage LTVP Assessment for her (assuming you’re a citizen), then get her switched over to a LTVP (with Letter of Consent if she’s working in Singapore) immediately after you marry — and you may wish to get married legally while having your whatever wedding ceremony/party you wish any time you wish. Then for her to apply for Permanent Residence after a couple years of getting married. Stabilizing her immigration status in Singapore is still important, even if you plan to relocate together to Australia 5 to 10 years from now. As soon as she’s on a LTVP (which happens really quickly if she has a “thumbs up” on the PMLA), a few more insurance choices are available, notably Integrated Shield coverage. (Although I’m not a fan of NTUC’s Integrated Shield plans specifically, so she ought to shop around.)

You are both likely to have some territoriality problems in insurance policies, so you want to read the policy letters very carefully. Also, when you’re living permanently (the plan) in Australia, your insurance needs to be protecting and defending an Australian outcome. As a notable example, while Singapore dollars are convertible to Australian dollars (and then to an Australian lifestyle), the exchange rate varies. That’s not ideal when trying to assure some result in Australia.


Step 1 is to understand what you really need for insurance within the current Singaporean and then Australian context — what are genuine insurance necessities. In my view that’s pretty simple: term life insurance (to the extent one of you is dependent on the other, and vice versa), disability income insurance (DII), and some medical insurance (to protect against big hospital bills primarily), which includes some travel medical insurance if/when you venture outside your home country. (Note: Not “travel insurance,” which is not an insurance necessity. Travel medical insurance is the part that’s important, which includes medical repatriation/evacuation.) After that, you could very well be overinsuring.


Well, that doesn’t work very well when it’s term life insurance and your spouse is trying to make the claim from Australia, for example. It’s unlikely there will be a problem shopping around and obtaining term life insurance in Australia when the time comes. I think that part is going to be quite easy.


No, I disagree with that, and in a couple ways.

First, life insurance coverage might vary. Let’s suppose for example that you have a non-working spouse. You would be profoundly sad if he/she were to predecease you and at a much too young age, but you’re not necessarily financially dependent on him/her. (You might be, even with a non-working spouse. For example, you might have children that he/she is caring for, and you would struggle financially to care for your children if he/she were not around.) Coverage decisions and levels should be decided separately for each spouse, and they often vary.

It really doesn’t make sense for someone without a right of abode in Singapore to maintain regular medical insurance in Singapore. I don’t see any merit in that with respect to Australia. Australia is not Afghanistan with questionable medical care standards (another country beginning with the letter A). Singaporean citizens are required to maintain at least MediShield Life for at least 5 years after leaving Singapore, since there is a possibility of return. (PRs must maintain at least MSL for as long as they’re PRs.) I would recommend dropping coverage down to a public hospital B1 ward plan for a little while (and not necessarily go any higher than that while living in Singapore for that matter), then see how it goes.

As mentioned, the Australian dollar is not the Singapore dollar, so there’s going to be some loss of “insurance efficiency” associated with currency that’s not helpful if changes aren’t made.

And many insurance policies have territoriality, so you have to read the policy terms and conditions carefully. Term life insurance is probably going to be OK, but the other insurance products are often quite sensitive to country of residence, at least before too long.


It’s a very good system.

wow thanks for this long and comprehensive reply. i will do my research around the points made by you.

With regards as to why didnt i prioritize disability income insurance, it was because my financial consultant at that time saying it was pointless because i will have eldershield when i reach 40 or smth. I am definately looking to get some coverage in that aspect after going through some of the threads in this forum.