Expat Edition: Common Misconceptions of Insurance

Starting a new life abroad is exciting and difficult at the same time. While discovering new opportunities and cultures can be exhilarating, foreigners frequently face the difficult challenge of sorting through insurance options. Misinformation about available insurance options for expats is common, which makes decision-making challenging. In 2023, Prudential Singapore conducted a study with expat customers and internal expat staff and found there were five top misconceptions amongst respondents. This article aims to help expats debunk these misconceptions and help ensure that you secure adequate protection while living in Singapore.

Misconception 1: Insurance has long payment terms.

One common misconception is the belief that insurance plans come with long payment terms, making it challenging to align with one’s unique financial situations. The reality, however, is far more accommodating. Prudential recognises the diverse needs of expats and offer plans with flexible payment options. Expats have the flexibility to tailor their payment schedules to suit their budgets and preferences.

Insurance can be financially accessible with flexible payment structures. By exploring available options and discussing your needs with Prudential, you can find plans that offer both comprehensive coverage and shorter payment terms. If you are looking at Life Protection plans, the PRUActive series of solutions, such as PRUActive Life III offers premium payment terms ranging from as short as 5 to 35 years suited to your unique needs. For health protection, PRUCancer 360 is a 5-year renewable plan allowing you flexibility to maintain control of your coverage on the back of rising medical costs.

Misconception 2: Premium payments are not easy.

Relocating to a new country can raise concerns about maintaining insurance coverage and ensuring timely premium payments. Prudential understands the transient nature of expat life and provide payment methods to accommodate relocation. If you need to make your payment in Singapore before your local bank account or card has been issued, you can use your international card for SGD policies.

In this way, you can focus on settling into your new environment with the peace of mind that your insurance coverage remains intact.

Misconception 3: The claims process is complicated.

Concerns about having difficult insurance claims often deter expats from securing coverage. The fear of encountering complexities and bureaucratic hurdles can overshadow the importance of insurance protection. Prudential recognises the unique challenges faced by expats and strive to streamline the claims process. Depending on the policies purchased, policy holders can receive a lump-sum payout via Telegraphic Transfer at a nominal charge simply by completing the claim form found online here and submitting it together with supporting documents through your financial representative, at the Prudential Customer Service Centre or by mail. If further assistance is needed, get in touch with Prudential by calling our hotline, speaking with us via video chat or visit us in person at the Customer Service Centre.

Misconception 4: Job loss risks my financial security.

The fear of job loss looms large for expats, especially when living in a foreign country far from familiar support networks. While job loss can jeopardise one’s financial security, insurance options such as the PRUWealth Plus exist to mitigate the financial risk associated with unemployment. In times of needs, you have the option to defer premium payments for up to 2 years. In case of job loss, Prudential will pay a one-time payout of up to 50% of your annual premium.

Insurance plans such as the PRUActive Life III also offer Premium Defer Benefit, which is available to those in times of needs. By activating this option in your coverage, besides enjoying no interruption to your PRUActive Life III coverage, you can also safeguard your financial well-being should you become unemployed.

Misconception 5: My company’s insurance coverage is enough.

Corporate insurance is a valuable benefit for many expats, offering a sense of security in unfamiliar surroundings. However, relying solely on company-sponsored insurance may leave expats vulnerable to gaps in coverage. Corporate insurance such as group medical insurance, may not be transferrable – when the employee changes job, coverage to the employee is disrupted. If the employee has any pre-existing condition(s), it is important to note that these pre-existing condition(s) will not be covered when a new insurance is applied. Therefore, it is essential for you to understand the limitations of your employer-provided plans and explore additional insurance options to ensure comprehensive protection.

Company-sponsored insurance plans often have predefined coverage limits and may not address all your unique needs. Henceforth, supplementing your corporate insurance coverage with PRUShield can help you obtain comprehensive and continuous1 coverage for when it comes to hospitalisation or medical fees.


Dispelling common misconceptions about insurance is crucial for informed decision-making and financial security while living abroad. At Prudential, we ensure expats with insurance plans that offer comprehensive coverage and peace of mind, making sure you can fully enjoy your experience without worrying about your financial well-being.

Contact a Prudential Financial Representative today to learn more about our insurance plans and find out about options available that are most suited for your lifestyle.


T&Cs apply. Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore. This article is for your information only and does not consider your specific investment objectives, financial situation or needs. We recommend that you seek advice from a Prudential Financial Representative before making a commitment to purchase a policy. Information is correct as of 23 April 2024.


PRUShield allows foreigners to have coverage as long as they have an eligible valid pass.

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