Does Your Insurance and Bank Cover You If You’re Retrenched?

Retrenchment can cause a significant financial impact on one, primarily affecting one’s main income source. Here’s how certain insurance plans and bank coverage can help in navigating this difficult period.

Singapore’s retrenchment headcount hit an all-time high at 4,000 in 2023’s first quarter, levelling against figures in 2016 and 2017. This number, coupled with layoff news from Shopee, Google, Meta, and—most recently—Grab, raises concerns among Singaporeans about job security.

The Singapore government is aware of how keeping up with the latest trends causes anxiety, especially in the rise of AI applications which may render certain human skills redundant, causing even more job disruption. Additionally, as a move to mitigate retrenchment among citizens here, during the National Day Rally this year, Prime Minister Lee Hsien Loong announced a new scheme to help retrenched workers via temporary financial support. 

This article dives into the banks and insurance companies that offer insurance coverage to help individuals tide through retrenchment.

Insurance Coverages for Retrenchment

Income Family Protect

This insurance plan works best for those belonging to the Sandwich Generation (who need to take care of their kids and elders) by providing crucial coverage, including cancer coverage and total and permanent disability protection.

The Retrenchment Benefit pays 1% of your sum assured each month, and the S$1,000 payout per month is based on the S$100,000 sum assured, paid monthly for up to three months.

AIG Bill Relief Protector

This free coverage from AIG provides coverage for up to S$3,000 for utility bill liabilities, provided the following unforeseen events affect the insured person:

• Residence is rendered uninhabitable due to an insured peril
• Retrenchment, provided
  • The insured person was employed 24 months prior to retrenchment
  • It occurred 3 months after the effective date of the policy
• The insured suffered a bodily injury at the insured residence, resulting in:
  • Death
  • Total loss of both hands/feet/eyesight

The benefit is only payable once per policy period, and a letter of retrenchment must be provided with other relevant supporting documents during claims submission. The coverage extends to existing customers as well but varies based on the product purchased with AIG.

The table below illustrates the products and their relevant Bill Relief Protector coverage.

Manulife Retrenchment Support Benefit

This complimentary benefit applies based on these two conditions:

• The policy owner is retrenched and remains unemployed for a minimum of 30 consecutive days from the date of retrenchment:
  • During the first two years of the eligible ILP plan, or
  • Up to the policy anniversary immediately after the policy owner’s 65th birthday of the eligible ILP plan, whichever is earlier, provided the policy remains in force
  • Manulife will pay a retrenchment support benefit of S$1,000
  • The complimentary Retrenchment Support Benefit is only applicable to policy owners with eligible ILP plan(s) issued between 1 October 2020 to 31 December 2020 (both dates inclusive)

• If the policy owner has more than one eligible ILP plan, the coverage start date will be based on the first policy issues from 1 October 2020 to 31 December 2020, both dates inclusive. 
• Each policy owner is entitled to a one-time payment of S$1,000, regardless of the number of eligible ILP plans purchased

Eligible ILP plans

Bank Coverage for Retrenchment 

CIMB Revital Accident Care (RAC)

This accidental insurance plan from CIMB covers five key benefits, including an income benefit if the insured party has been involuntarily retrenched.

In order to be qualified for this coverage, the requirements include that:

• The insured person is gainfully employed when he first incepted the policy
• The insured person has been working continuously for a 12-month period before being made involuntarily unemployed
• The policy must pass the 6-month waiting period from its first incepted date

RAC will pay 1/30th of the monthly Unemployment Benefit stipulated on the policy for each day the insured is unable to get employment for up to a maximum of 3 months*. The policy does not cover self-employed individuals.

*Subject to policy’s terms and conditions

Telco Coverage for Retrenchment

Singtel Bill Protect

Singtel subscribers should sign up for this complimentary protection extended by Singtel for coverage of Singtel bills.

In its partnership with Etiqa, Singtel subscribers can receive a waiver to their outstanding Singtel bills in the event of job retrenchment or accidental death. 

**Refers to the registered account holder of a Singtel bill account with one or more postpaid mobile lines and price plans such as XO Plus, Combo, SIM Only Plus plans and corporate individual scheme plans. It excludes GOMO and heya users, as well as Singtel bill accounts that are suspended or permanently disconnected.

Use these tips to boost your career and guard against retrenchment

In today’s ever-changing job market and economic conditions, it’s essential to proactively strengthen your career and be prepared for unexpected challenges. Here are some practical tips to help you stay resilient and safeguard your professional future.

Reevaluate your career goals

Set a fixed time and conduct a quarterly or half-yearly audit to your career goals and aspirations. Are you on the right path or should you pivot? If you need to, adjust your career trajectory to align with your medium- to long-term objectives.

Never stop learning and upskilling

Invest in yourself by acquiring micro-certifications relevant to your field and added knowledge to push you further, while also boosting your resume points. Check out websites like NTUC Learning Hub, MySkillsFuture, Workforce Singapore, and LinkedIn certification courses.

Network strategically

The power of an extensive professional network can come in handy in many ways, from getting to know like-minded individuals in your field to sharing insights to exploring job offers in a new company. Connect with colleagues and mentors to gain and share guidance and support.

Diversify your skill sets

Supercharge your career by adapting to become a versatile professional. By enhancing your abilities in handling various tasks within the scope of your career field, you are less susceptible to job instability.

Update your resume and LinkedIn profile regularly

Showcase your accomplishments and skills on your resume and LinkedIn profile. The latter especially helps by giving you an impressive online presence to attract new opportunities and potential employers.

By implementing these strategies, you can strengthen your career and reduce vulnerability to retrenchment. Remember that career development is a continuous process and by taking proactive measures, you can seize opportunities as they come in your professional journey.

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Disclaimer: Protected up to specified limits by SDIC. This is only product information provided. You may wish to seek advice from a qualified adviser before buying the product. If you choose not to seek advice from a qualified adviser, you should consider whether the product is suitable for you. Buying an insurance product that is not suitable for you may impact your ability to finance your future financial needs. If you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and the insurer may recover from you any expense incurred by the insurer in underwriting the policy.

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