What Happens to Your Insurance Coverage When Moving Abroad?

This post was originally posted on Planner Bee.

Planning a move overseas in your 20s or 30s can be an appealing opportunity. Almost two in three Singaporeans are open to relocating for work, and 72% of those are under 30.

Relocating allows you to experience new cultures, work in different markets, and gain perspectives that may be quite different from those of your peers. It can also support personal and professional growth.

Before you board a flight, though, it is worth considering what will happen to your insurance in Singapore after you relocate. This applies even if you remain a Singapore citizen. And what if you decide to give up your citizenship? Here is a look at what you can do to safeguard your health, wealth, and peace of mind.

What will happen to your insurance if you relocate?

Healthcare systems in different countries operate very differently, and arranging a global health insurance policy before you move can help with costs such as hospital stays, treatment, or seeing a specialist. If you are relocating for work, your employer will typically offer health insurance or assist with setting it up before you go.

But what if you already have health, life, or other general insurance policies in Singapore before the move?

Medical insurance

If you are living overseas and do not plan to return to Singapore, you can apply to suspend your MediShield Life premium payments. If you choose to continue paying premiums, your coverage will remain in place in case you decide to return to Singapore later. If you suspend your payments, you will have to pay the accumulated sum of premiums not paid previously, with compound interest, should you decide to resume your coverage.

Most Integrated Shield Plans (IPs) only cover hospital stays within Singapore. They usually do not reimburse overseas hospitalisation bills, especially if you have been out of the country for more than 180 days.

If you expect to return to Singapore in a few years, it may be worth keeping your IP active, provided you can manage the cost. This avoids the need for new medical underwriting later, which reduces the chance of being denied coverage for any new conditions diagnosed while you were abroad.

Life and critical illness insurance

If you have purchased life or critical illness insurance before your relocation, your policy stays valid as long as you keep up with the premium payments.

These policies usually offer worldwide protection. Claims made while overseas are generally accepted, although there may be exclusions for high-risk regions. It is best to check with your agent before you move.

You should also inform your insurer about your relocation. Not doing so could invalidate your policy, so speak with your agent in advance to make sure your cover remains in force.

Other insurance

CareShield Life remains valid even if you relocate overseas, as long as you continue paying your premiums. If you become severely disabled while living abroad, you can still make claims under CareShield Life. However, you may need to return to Singapore for an assessment by an MOH-accredited doctor, or alternatively provide equivalent medical documentation that is accepted by the scheme administrators.

Personal accident plans typically do not cover events that happen while you are relocated overseas. If something happens overseas, you likely will not be able to make a claim. These policies usually do not require medical underwriting, so you can cancel them before moving and reinstate them when you return.

Home contents or home insurance covers your property in Singapore. You can keep this cover active while overseas to ensure your home stays protected against theft, fire, or damage, even if the property is left empty.

Car insurance does not apply if the vehicle is not being used locally. You might want to cancel or suspend the policy to avoid unnecessary costs.

Travel insurance is intended for short-term trips and does not cover long-term stays. If you are relocating, make sure you have the right type of insurance in place.

Read more: CareShield Life: What Is It, and Is It Worth It?

Thinking about foreign citizenship?

If you’re planning to move abroad permanently and take up foreign citizenship, there will be important changes to your insurance coverage.

Once you renounce your Singapore citizenship or Permanent Resident status, your MediShield Life cover will end. You will no longer be eligible for it as a foreign citizen.

A change in citizenship may also affect your life or critical illness insurance policies. It’s best to check with your insurer to see if your policies can remain in force or if any updates are needed.

Insurance tasks to sort out before you relocate

Insurance plays a key role in future-proofing your finances. Taking steps to avoid a lapse in coverage will help ensure continued protection for your health, retirement, and other needs, regardless of where you live.

Once you have decided on relocation, verify with your employer to find out what insurance coverage is available abroad. Ask whether medical insurance is provided and make sure that it covers emergencies. You should also check if other forms of protection, such as personal accident or critical illness cover, are included.

Next, arrange an appointment to meet your insurance agent. They can guide you through what needs to be done before your move. Make sure to get everything documented in writing to avoid any confusion later. If new insurance is required, your agent can help you arrange it in advance.

Some insurance companies, such as AIA and AXA, offer international health insurance. These policies give you access to healthcare globally and follow you wherever you go. Like local plans, they usually cover hospital stays, outpatient treatments, and care before and after hospitalisation.

International health insurance premiums can fluctuate depending on your coverage and where you are located, so it’s important to discuss your needs clearly with your agent.

If you’ll be overseas for a long period, and especially if you plan to return to Singapore in a few years, make sure you’ve set up GIRO payments to keep your insurance premiums up to date. Missed payments can lead to gaps in coverage, which could cause problems if you need to make a claim.

Final thoughts

Relocating doesn’t mean you have to give up the protection you’ve built. With proper planning, you can continue to safeguard yourself and your loved ones.

Let your insurers know about your move, keep written records, and make sure you’re covered while overseas.

If you plan to return eventually, keeping key policies like life and health insurance active will help secure your financial position.

Need help with insurance matters? Planner Bee is here to assist!

Read more: 9 Smart Insurance Tips To Save Money Without Losing Coverage