You buy insurance for the guarantee of your financial future. But what if the insurance company goes bankrupt? The collapse of Lehman Brothers and near bankrupt of AIG during the global financial crisis has shown this concern is real.

Singapore consumers enjoy the benefits of a sound financial system, but MAS does not guarantee the soundness of individual financial institutions. Therefore, a Policy Owners Protection Scheme (PPF Scheme) has been set up to protect policy owners.

If a life or general insurer who is a PPF Scheme member fails, MAS may activate the PPF fund to compensate the policyholders. This article will explain to you how the Policy Owners’ Protection Scheme works in Singapore…

The PPF Scheme protects all life insurance policies (including riders) issued by registered life insurers which are PPF Scheme members.

This would include policies issued to non-Singapore