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One Pass Holders – Three Areas Of Insurance Planning You Should Consider In Singapore

A text message that I have received on a fine day last year:

“Hi Hau Eng, I was referred to you by my colleague, Mr. A, who is your client and has engaged you for some insurance planning. I was wondering if my family and I will be eligible for any insurance coverage in Singapore. We have recently moved here from our hometown after I obtained my ONE PASS. Please advise.”

Over the past few months, I have received multiple enquiries of a similar nature, all from different successful individuals with one thing in common: They are eager to build their lives here, but at the same time, can’t help worrying about the uncertainties in life on this foreign ground, both for themselves and their families.

What is a ONE PASS?

Overseas Networks & Expertise Pass (ONE Pass) is a new type of work visa launched by MOM in 2023 to attract top talents from overseas who excel in business, arts, culture, sports, science & technology, and academia & research.

How does it differ from other current work visas?

 Unlike other work passes like Employment Pass (EP), ONE Pass will be tied to the individual. This means that pass holders are free to switch jobs, work for multiple companies, or even set up their own company without having to reapply for a new pass. Not only that, but the spouse of a ONE Pass holder will also be able to work in Singapore upon obtaining a letter of consent, granting great flexibility for family members.

There are currently two routes to be eligible for ONE Pass: one is to fulfill the salary criteria, and another is to have outstanding achievements in certain areas. For the salary criteria, one will have to earn a fixed monthly salary of at least $30,000 for the last 12 consecutive months to qualify.

Alternatively, one may also apply for the pass without meeting the salary criteria if the person has outstanding achievements in sports, arts and culture, and/or academia and research areas. Other work visa holders will need to have worked in Singapore for at least 1 year before they can be eligible for the salary criteria. For overseas applicants, they must also have worked for an established company for over 1 year.

Source: https://www.mom.gov.sg/passes-and-permits/overseas-networks-expertise-pass/eligibility

Insurance Planning For Foreigners in Singapore

“Foreigners are not eligible for insurance in Singapore.”

Not sure if you have heard of this myth before, but this statement is furthest from the truth. Singapore has long been striving to be an international hub. For that to happen, the welfare of foreign talents and their families must also be prioritized. In fact, non-residents can access a wide range of the available insurance in Singapore, just like residents can.

However, certain qualifying criteria or conditions must be met, depending on the exact types of insurance products and the policies of the insurance companies. Common example would be nationality, length of validity for the visa/pass, type of visa, and duration of stay. In summary, while there are some considerations to account for, foreigners can indeed secure necessary insurance coverage during their stay in Singapore.

But what are the areas that you should consider in setting up an insurance program to provide the necessary protection for you and your family?

Three areas of insurance planning for ONEPASS holder to consider:

Medical Insurance

Residents in Singapore have access to excellent healthcare, but that also means it may cost quite a lot, especially for non-residents who are not eligible for subsidized healthcare services. Having health insurance ensures that you can receive timely medical care without facing significant financial burdens.

This truly becomes crucial for those who may not have a support system or established network yet in Singapore. Often your employer may have provided some form of medical insurance coverage, but the coverage is usually not extended to the family (or portable should you change jobs), thus resulting in a gap of coverage.

Life Insurance – Death and Disability coverage

Many people diligently protect their tangible assets—homes, cars, and businesses—with insurance. However, one asset that is often overlooked is perhaps the most valuable of all: you.

Your life insurance coverage is a clue as to how much you value yourself. Beyond that, life insurance ensures continuity in meeting essential financial obligations such as mortgage or rent payments, children’s education expenses, and daily living expenses for the families.

By preventing the burden of outstanding debts from falling onto your loved ones, it essentially gives you the peace of mind knowing that the impact of any tragic events are minimized.

Life Insurance – Critical Illness coverage

One common misconception is that having hospitalization insurance is enough, and critical illness coverage isn’t necessary. This might be true in some countries with a different healthcare system, but it’s not the case in Singapore.

Hospitalisation insurance, like the name implies, only covers medical expenses incurred during a hospital stay. While it is essential for you to get quality treatment, critical illness coverage is equally vital because it protects you from the broader impact of a critical illness, such as career setbacks, business interruptions, missed family milestones, and loss of income during the process of treatment and recovery, which can stretch 2 to 4 years easily, or perhaps, even more. Without critical illness coverage, you are left to bear these financial burdens on our own.”

Immediately interested? Inside this Guide to insurance options for ONEPASS holder is a list of viable options available for you to address the insurance planning needs that we have just discussed. Click HERE to download.

Final Note

Finally, I would like to end with some questions that can serve as a guide to help you understand if insurance planning is a critical financial need to address right now. I hope that these questions will be a useful guide to help you get the initial clarity you need.

Questions relating to your company:

  • Are you covered by any company insurance?
  • Are those insurances extended to your families?
  • If you change jobs, can you take your insurance with you?
  • Do you have any control over the insurance coverage from the company?

Questions relating to yourselves:

  • Do you currently own any personal insurance?
  • When was the last time you spoke with a financial planner to ensure the relevance and adequacy of your coverage?
  • How easy would it be for you to file a claim on insurance from your hometown while living in Singapore?
  • How prepared are you financially for unexpected events that aren’t covered by insurance?

Questions relating to your family:

  • How much does your family rely on your income?
  • Do they have any existing insurance?
  • What other arrangements are in place to ensure seamless financial support to your family if something happens to you?
  • How long will it take for your family to become financially independent without your income?

I hope you find this article helpful! Feel free to reach out to me by dropping your message below if you have any questions, or simply want to chat!

Article by Moo Hau Eng

Email: haueng.moo@gen.com.sg

The writer is a financial adviser representative representing GEN Financial Advisory Pte Ltd.

NEED ANY HELP ?

If you want to know more about Insurance for ONE Pass holder or any other enquiries, you may contact me through whatsapp, schedule an appointment with me or fill up the form below and I will get back to you as soon as possible.

GEN FINANCIAL ADVISORY

Moo Hau Eng
Financial Services Consultant

RNF No. MHE300083770
Bachelor of Environmental Engineering

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2024-07-03T16:56:44+08:00
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