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Savings Insurance In Singapore – What You Need To Know

Savings Insurance In Singapore - What You Need To Know

Savings Insurance In Singapore – What You Need To Know

The financial market in Singapore has blossomed these past few years, producing a myriad of helpful financial products. The options are plentiful to ensure that you can always find that investment plan that works best for you. On the downside, the mind-boggling options tend to confuse most people. To clear up some of the confusion, this article is going to focus on savings insurance In Singapore.

The Basics

The first thing to note is that you should not confuse savings accounts and savings insurance in Singapore. The two are not the same. A savings account is a bank account in which most people store their excess money. Savings insurance is drastically different as it’s a financial vehicle you buy so your savings can grow over a fixed amount of time.

With a savings account, you can withdraw your money anytime you want. On the other hand, savings insurance is more rigid, and you must commit the money for a period of years before you can withdraw it. While it is true that you can still withdraw in some cases, it usually leads to a hefty penalty.

As an example, if you choose to buy a 5-year savings insurance plan, that means you can’t withdraw your money for the next five years. If you need to withdraw for whatever reason, you’ll be penalized for early withdrawal. Generally, savings insurance in Singapore work similarly to a bank’s fixed deposit.

You should also not confuse saving insurance with an investment plan. Investment plans typically produce higher returns. However, it also carries a higher risk where it’s possible to lose all your money. When it comes to savings insurance in Singapore, it’s improbable that you lose your capital, but the yields will also be lower.

Savings Insurance In Singapore - What You Need To Know

Your Options

When it comes to saving insurance, you have usually have two major categories to choose from – the regular premium plans and one-time lump sum premiums.

* Regular Premium Plans – this savings insurance plan will require you to contribute a certain amount of money each month or year. You will then receive your capital back plus gains at the end of your contribution years. The returns are guaranteed.

* One-Time Lump Sum Premiums – this savings insurance plan is doesn’t require you to contribute on a monthly or yearly basis. Instead, you only pay a single lump-sum payment.

What is the Singapore insurance savings plan?

The Insurance Savings Plan is a savings account that offers you insurance coverage and a sizable rate of return comparable to a high-interest savings account.

Is there savings insurance in Singapore?

An insurance savings plan can boost your overall income and cut taxes by a large amount. It’s a terrific tax-saving technique. A savings insurance in Singapore plan’s premium payment is tax-exempt under Section 80C of the Income Tax Act of 1961.

What is a Singapore endowment plan?

An endowment policy is a hybrid plan with an investment component and insurance coverage. It is the rationale behind why insurance firms sell the majority of plans. In an endowment plan, some premiums go toward the policyholder’s life insurance; the rest is used to make investments.

Are The Results Guaranteed?

The short answer is – yes. However, if you are dealing with a private institution, then there’s always that possibility that the company will go bankrupt. If that happens, it’s possible that you will only get back a portion of your capital or lose it entirely. However, this event is highly unlikely, especially if you deal with an established financial institution with years of track record.

Wrapping It All Up

Savings insurance in Singapore is similar to a time deposit with a bank. It’s a way for growing your money with very little risk involved as you are guaranteed results. Generally, you have two options. Either you opt for a regular premiums plan or a one-time lump sum premium plan. To keep your capital more secure, it’s best that you deal with an established financial institution with a long-standing history as the probability of them going bankrupt is very low.

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The healthcare system in Singapore

Singapore’s healthcare system is considered the second best in the world. But if you are not a permanent resident then you will not be able to benefit from the advantages of this system. Therefore, it is important to take out expatriate health insurance prior to your departure or upon arrival in Singapore to protect you from the costs of hospitalization or very expensive medical consultations.

How does the Singapore healthcare system work?

Singapore’s healthcare system is based on the Central Provident Fund. The equivalent of one mandatory savings account for every Singapore worker and permanent resident in the territory. Opens rights to social benefits after individual capitalization. This fund is fed with part of your salary and is used to finance mortgages, pay your retirement or finance your health insurance.

This scheme is open and mandatory for expatriates if and only if they have permanent resident status. What more than 80% of foreigners do not have since you must have been a non-permanent resident for at least 10 years in the territory to be eligible for status.

The 3 public health schemes in Singapore

It was gradually introduced by the government starting in 1984 with a 3-scheme system also called 3M: Medifund, Medishield and Medisave.

  • Medisave is introduced with the aim of developing a national medical savings plan that helps citizens allocate part of their income in an MSA (Medical Save Account) to cover part of the expenses of hospitalization, surgery or outpatient care.
  • Medishield Life is a health insurance plan that helps pay bills and more expensive outpatient treatments, like chemotherapy. It is complementary to Medisave and covers the expenses not assumed by the Medical Savings Account. But Medishield Life does not cover dental, optical or pregnancy and delivery care.
  • The Medifund is an endowment fund established by the government to help workers in financial difficulty.

You should know that many Singaporeans subscribe to private insurance if they can, or finance themselves through their employment to cover expensive healthcare costs as much as possible.

The COVID-19 health situation in Singapore

Following the implementation of the zero covid strategy by the Singapore government, any non-resident, traveler or expatriate must have a full vaccination regimen for at least 2 weeks before entering Singapore territory. They must be in possession of a PCR test of less than 72 hours on the outbound trip and be tested again when they enter the territory. 

The price of a PCR test in Singapore fluctuates between 150 and 200 USD. You must also apply for a “Vaccinated Travel Pass” between 7 and 30 days in advance on the website of the Singapore authorities. Finally, all non-residents, travelers or expatriates must purchase travel insurance that covers at least USD 30,000 of Covid-related medical expenses.

What is the cost of healthcare in Singapore?

For expatriates, 80% of generalist services are provided in private practices. It can be attended on public roads but the costs will be close to those of private establishments. Getting an appointment quickly at a public establishment is more difficult and takes longer because Singaporeans are in high demand.

The cost of a consultation with a general practitioner is on average 100 SGD or 60 euros. While the costs of consultation with a specialist are on average much higher. For example, a dental consultation may cost SGD 1,975 or EUR 1,300. Hospitalization for appendicitis surgery (without complications) can cost 18,000 SGD, or about 12,000 euros.

The price of an analgesic drug in pharmacies is around 9SGD. In addition, the Singapore service is simpler and more efficient because the optician can also be an ophthalmologist. Thus, he can take care of you and then offer suitable frames in a single consultation, which can be done without an appointment.

Price comparison in a public and private hospital in Singapore

In a public hospital, the price of consultations for an expatriate who does not have permanent resident status are:

  • General inquiry: around SGD 80
  • Family doctor: about SGD 94
  • Dental consultation: between SGD 40 and SGD 80
  • Dental emergency: SGD 94

In a private hospital, the price of consultations for an expatriate who does not have permanent resident status are:

  • Short consultation (-10mn): between SGD 60 and SGD 135
  • Long consultation (11-20mn): between SGD 120 and SGD 200
  • 1 night in hospital: between SGD 1,750 and SGD 6,700

You cannot pay a single penny during hospitalization by providing a letter of guarantee previously provided through your insurance under certain conditions.
Also, if you want to make an appointment with a general practitioner, you can also book a consultation at a clinic.

Best savings accounts in Singapore with highest interest rates (2023)

Savings accountInterest ratesBest for
CIMB FastSaver1.50% to 3.50%Young adults starting their careers
DBS Multiplier0.05% to 4.10%Salaried workers
UOB One0.65% to 7.80%Freelancers & self-employed
OCBC 3600.05% to 7.65%Growing your savings

What are the reputable public and private hospitals for expats in Singapore?

Renowned hospitals include:

  • Gleneagles Private Hospital – is one of the top 10 hospitals in the world, thanks in particular to its state-of-the-art neonatal intensive care and intensive care unit. Patients can also apply for and obtain a visa extension on the spot, as well as assistance with language interpretation.
  • Farrer Park Private Hospital – Located in Conexión, the building has 20 floors with a hotel and a spa. Additionally, technology and innovations help provide the best medical treatment options.
  • The Singapore General Hospital (SGH) : it is one of the public reference hospitals in Singapore, with more than 1,700 beds, it is also a university center for science and health.
  • The National University Hospital (NUH) : is another public reference hospital in Singapore. It is the only public hospital that offers a kidney, liver and pancreas transplant program for adults.

How to receive treatment in the emergency department in Singapore?

  • Singapore has a 24/7 emergency medical service. There are two numbers to contact depending on the level of urgency you require.
  • If you are the victim of a serious accident and want to be treated by the emergency department of a hospital in Singapore, contact the paramedics number by dialing 995.
  • If you are the victim of an accident and your vital prognosis is not compromised, you can dial the 1777 for non-emergency ambulance support.

How much does a pregnancy cost in Singapore?

When you get pregnant in Singapore, your pregnancy can be managed by an OB-GYN or a GP. You can get an ultrasound in a private practice or in a hospital, in which case the fee will be around SGD 175. Regarding the follow-up of the pregnancy in a public hospital, routine consultations cost an average of SGD 148 and an anatomical examination about SGD 188. 

In a private hospital, the price of consultations with a general practitioner or obstetrician-gynecologist is around SGD 200 and ultrasound scans around SGD 175. For delivery, the average cost of renting a room in a public hospital for two nights is SGD 8,474. In a private hospital, the average cost is SGD 12,100.

What about your children?

If you have children, they must have received an injection of Hepatitis A vaccine at least two weeks before entering Singapore. the age of two months. They should also be vaccinated against hepatitis B and typhoid fever. Finally, if you want to send your children to primary school in Singapore, they must be vaccinated against:

  • BCG
  • whooping cough
  • Poliomyelitis
  • Mumps
  • Rubella
  • Hepatitis B

Should we take health insurance in Singapore?

The answer is yes. Firstly, because you cannot benefit from the 3M system if you are not a permanent resident. Then, because benefiting from one of the best healthcare systems in the world comes at a price. We deepen our knowledge of foreign healthcare systems every day, Singapore being one of them. And this with the sole purpose of offering you the most appropriate insurance contracts for your situation.

What health insurance for Singapore?

Therefore, it is recommended to take out goldExpat expatriate health insurance, the ideal Singapore insurance for Asian countries.

  • Hospitalization at 100% of actual costs: Hospitalization should be reimbursed at 100% of the actual costs incurred, this is a real necessity for Singapore insurance. The costs of hospitalization in Singapore are high, it is essential that you are covered 100% in case of an accident.
  • Coverage of current medical expenses : Medical expenses are reimbursed at 90% or 80% (depending on the formula chosen) of the actual expenses incurred. This includes consultations with general practitioners and specialists, health checks, medication, etc.
  • Liability Management: Being covered is one thing, but being covered for damages to others is another! Imagine you are causing property damage in Singapore. He will obviously take care of you. But if you do not have a liability in your Singapore insurance, then the costs to be paid to that third party will not be covered by your insurance and you risk being in serious debt!
  • Repatriation Responsibility: There are many medical cases or situations where repatriation to the country of origin is de rigueur or highly recommended. Where Singapore’s social security system will never allow repatriation to be covered, private health insurance may allow you to return to your country for treatment.

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Savings Insurance In Singapore – What You Need To Know

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