5 Insurance Plans To Consider For Your Child
You can start planning as early as the 13th week of pregnancy. Here’s a quick guide on the must-haves and good-to-haves when it comes to child insurance
By Victoria Tan -
Thinking about insurance plans is probably not the first thing that comes to mind (nor is it the most exciting) when you're having a baby. But it’s one of the things that often gets overlooked or back-burnered, in the face of pressing parenting issues. Poonamis, puke disasters, toddler meltdowns, discipline dilemmas! Who likes envisioning more worst-case scenarios? However, it’s precisely because of how much we love our little ones that it’s important to plan ahead for unexpected circumstances.
In fact, you can get started even before your baby makes his/her way into the world. Most major insurers offer prenatal insurance, which you can get from the 13th week of your pregnancy. This covers you against any pregnancy and childbirth complications as well as covers your child in the event of certain congenital diseases and juvenile conditions.
Once your child is born, there are several other types of protection plans you will need.
If your child is a Singapore Citizen, he/she will automatically be insured under MediShield Life, which covers large hospital bills and certain outpatient treatments from the moment they are born. Premiums for MediShield Life may be fully paid for using MediSave. Singapore Citizen babies are also entitled to the MediSave Grant for Newborns of $4,000, which is credited to your child’s MediSave account upon registration of their birth.
However, MediShield Life only covers subsidised treatments in B2 and C wards of public hospitals. If you would like extra coverage so that your child can be cared for in a higher-class ward or in a private hospital, you’ll need an Integrated Shield Plan (IP), which is offered by private insurance companies.
Another must-have protection plan in your child’s insurance toolkit is the Critical Illness policy, which pays out a lump sum upon diagnosis of critical illnesses. This money can help pay for medical treatments or to tide you over, should you decide to take time off to care for your little one.
With your curious little explorer clambering over furniture and stuffing all manner of oddities in their mouth, it’s always useful to have a protection plan in case of any misadventures. A comprehensive personal accident plan also offers coverage against sickness such as food poisoning, hand, foot & mouth disease (HFMD) and dengue fever.
The main reason people buy life insurance is to ensure their loved ones are financially covered in the event they die, are diagnosed with a critical illness or struck with a disability. As such, you might wonder why it’s necessary to get life insurance for your child when they have no dependents to support. The lump sum payout upon diagnosis of a critical illness or disability can help defray costs should you or your partner choose to take a break from work to care for your child. It can also help to fund alternative treatments that may not be covered under your child’s hospitalisation plan. Some life insurance plans also provide additional coverage for certain juvenile conditions such as kawasaki disease, autism and dengue hemorrhagic fever.
Beyond your child’s medical expenses, it’s also important to think long term and plan for their tertiary expenses. A local university course typically starts from $40,000 for a four-year programme while overseas education can hit upwards of $200,000. Don’t forget about inflation and the rising cost of education – these figures are bound to go up once your child hits university-going age. This is why it’s crucial to start putting aside money as early as possible through financial instruments that either offer a lump sum payout when the policy matures or pays out a steady stream of money over a period of time.
While it’s crucial to plan ahead for your growing family, it’s also important to recognise that our financial resources are finite. This is why you should do up a proper budget before committing to any long-term plan. Getting your child protected with the essentials need not be a costly affair – do your research and speak to several professionals before you make a decision. Good luck!
Victoria Tan is a new mother-of-one navigating the weird and wonderful journey that is parenthood. Even amidst the sleep deprivation, breastfeeding woes and endless diaper changes, she's finding joy in rediscovering the world through her son's eyes.