Can Buying Insurance Improve My Singapore PR or Citizenship Approval Chances?

Question

I am applying for Singapore PR through an immigration agency. The agency has advised me to purchase insurance policies, claiming that this will improve my chances of PR approval.

I am unable to understand what insurance has to do with a PR application. Is buying insurance really necessary, and does it improve approval chances?

Insurance Has No Direct Connection With PR Approval

Insurance does not have any direct connection with the approval of a Singapore PR or citizenship application.

If you already have insurance policies, you may disclose and submit the details as part of your overall financial profile. They may provide a small supporting benefit by demonstrating financial planning and stability.

However, purchasing expensive insurance policies specifically for a PR or citizenship application is generally unnecessary. There is no assurance that buying insurance will meaningfully improve your approval chances.

The Immigration Company May Be Earning a Commission

In many cases, the immigration company may have a commercial arrangement with an insurance agent or financial adviser.

Some immigration companies initially charge a relatively low professional fee, which makes their service appear affordable. After the client signs up, the company may strongly recommend purchasing insurance and explain that the policy is beneficial because it remains the client’s own financial asset.

What the client may not realise is that insurance products can generate substantial commissions for the agent. The insurance agent may then share part of that commission with the immigration consultant or referring company.

High-Premium Policies Can Generate Significant Commissions

Some clients may be advised to purchase insurance policies costing S$5,000, S$10,000 or more per year.

For certain insurance products, the first-year commission paid to the insurance agent can be substantial. For example, if the commission is approximately 50% on a policy with an annual premium of S$10,000, the total commission may be around S$5,000.

Even if this commission is shared equally between the insurance agent and the immigration consultant, each party may receive around S$2,500.

Depending on the type of policy and commission structure, the immigration company may earn considerably more from the insurance referral than from the immigration service itself.

Therefore, the recommendation may not necessarily be based only on what is best for your PR application.

Some Immigration Businesses Are Started by Insurance Agents

In certain cases, the immigration company may have been established by an insurance agent, financial adviser or their family members.

The immigration service may then function partly as a way to identify potential insurance customers. The client approaches the company for PR assistance but is later introduced to insurance products as part of the supposed immigration strategy.

This does not automatically mean that every such company is acting improperly. However, clients should understand the commercial relationship and ask whether the company or its representatives receive any commission or referral payment.

Be Careful When the Company Promotes an “Insurance or Financial Desk”

You should become cautious if an immigration company repeatedly promotes its separate “financial desk,” “insurance desk” or “wealth planning team.”

At that point, the company’s business focus may no longer be limited to preparing your immigration application. You may also be treated as a potential insurance or investment client.

You should ask clearly:

• Is buying the insurance compulsory?
• How exactly will it affect the PR application?
• Will the immigration company receive any referral fee or commission from the insurance agent?
• Can the PR application proceed without purchasing the policy?
• What are the surrender charges and long-term commitments?

Consider What Happens If You Leave Singapore

Employment Pass holders should also consider whether the insurance policy will remain suitable if their circumstances change.

For example, you may later return to your home country or relocate to another country such as the United States or the United Kingdom. You should understand whether the policy can continue, whether premiums must still be paid in Singapore dollars, and whether there are penalties for early surrender.

Some long-term insurance policies may result in substantial losses if they are terminated during the initial years. Therefore, you should not purchase a policy merely because an immigration consultant says it may support your PR application.

One Example of Excessive Case

I have seen, some applicants are advised to put at least 30% of their annual income into insurance-linked investment products, such as life or endowment policies.

I have seen cases where applicants were encouraged to commit nearly S$50,000 per year. Such a large financial commitment is completely disproportionate and cannot reasonably be justified merely as a way to improve a PR or citizenship application.

These products may not be pure insurance policies that simply lapse, but they can still involve long-term commitments, surrender penalties and limited flexibility. Applicants should not invest such substantial amounts unless the product genuinely suits their own financial goals.

Do you think ICA wants you to buy expensive policies

Consider the issue logically: does ICA genuinely expect applicants to purchase expensive insurance, investment-linked policies or endowment plans before granting PR or citizenship?

A reasonably young person may already be covered under an employer’s hospitalization plan and may also have personal medical insurance. There is no logical reason why ICA would require that person to purchase multiple costly policies.

If insurance or endowment investments were genuinely an important approval requirement, ICA could clearly state that applicants must hold a policy of a certain value, such as S$100,000. No such published requirement exists.

Therefore, the claim that purchasing expensive policies will materially improve approval chances should be treated with considerable caution.

Conclusion: Insurance May Help Slightly, but Expensive Policies Are Not Required

Existing insurance policies may provide a small supporting benefit as part of your broader financial profile.

However, purchasing substantial insurance policies specifically to improve PR or citizenship approval chances is generally unnecessary and may simply be a sales tactic.

Be cautious when an immigration company strongly promotes expensive insurance products. Ask for full disclosure of commissions, referral arrangements, surrender values and long-term financial commitments before making any decision.