Understanding National Insurance in Singapore

What is National Insurance?

National insurance is a type of insurance that provides financial protection to individuals in the event of unexpected events, such as accidents or illnesses. In Singapore, national insurance is mandatory for all citizens and permanent residents who are employed.

In this blog post, we will explore the concept of national insurance in Singapore, its benefits, and how it works.

How Does National Insurance Work?

The national insurance scheme in Singapore is managed by the Central Provident Fund (CPF) Board, which provides a comprehensive range of benefits to its members.

The CPF Board collects premiums from employees and employers, which are then used to fund various benefits such as medical expenses, disability support, and retirement savings.

Why is National Insurance Important?

National insurance provides financial security to individuals in times of need. It helps to alleviate the burden of medical expenses, loss of income due to disability or illness, and retirement savings.

In addition, national insurance also promotes social cohesion by providing a safety net for vulnerable members of society.