Let's identify the top three plans that your family should be protected with.
When you become a parent, your responsibilities increase. You need to make sure that you're ready to take care of your family emotionally, physically and financially.
With a newborn in tow, you probably have a never-ending to-do list. However, while you attend to the "here and now" needs of your new and growing family, make sure that you don't lose sight of the bigger picture.
A crucial responsibility as a new parent is to plan for financial preparedness, and protect your little one’s future. This often involves realigning your family insurance plans to financially protect yourself and your family.
It's normal to feel overwhelmed with the options available and a little clueless about where to start? In this article, we highlight three priority areas which you can begin to evaluate when it comes to insurance for your family.
#1: Always protect yourself first
Do you remember those safety videos that are aired before a plane takes off? Think about the scene when the parent puts on the hanging oxygen mask on herself before attending to the child.
The same theory can be applied when it comes to insurance.
Your children are completely dependent on you for all their needs. If you're no longer able to financially provide for them, they are helpless. So, protect yourself first, before tending to their insurance needs. This way, there's a financial safety net for your children, in case something happens to you.
One of the ways to financially protect your family against situations like death, critical illness, terminal illness and/or disability is via term insurance plans. Such plans typically pay out a lump sum of your choice, so should the unfortunate happen, your family can continue to pay the bills, mortgage, children's school fees and other living expenses.
#2: Health insurance
While parents tend to have health cover for themselves, they often overlook taking on health insurance for their children until there is a medical emergency.
It is, however, prudent to purchase health insurance coverage early on. If a medical condition has already developed, insurers typically will not cover that condition and other related conditions. This is why parents should get health insurance for their children when they are young, healthy and free from illnesses, to secure full coverage.
In Singapore, all citizens and Permanent Residents are covered by Medishield Life. This national medical insurance provides basic coverage on hospitalisation and surgical costs, which protects your baby for life, even if they have pre-existing health conditions.
You can pay for your child's Integrated Shield Plan premiums via you or your spouse's MediSave – good news for new parents who may be cash strapped!
To enhance the coverage, you can purchase Integrated Shield Plans such as Singlife Shield. Integrated Shield Plans are designed to provide "as charged" coverage for most benefits so you need not be restricted by MediShield Life's claim limits. They also provide increased coverage so your child can be treated at higher class wards or private hospitals, and still be covered for the higher costs. And while MediShield Life does not cover pre- and post-hospitalisation treatments, an Integrated Shield Plan will.
What’s more, if both you and your spouse are covered under Singlife Shield Plan 1 or 2, your children will enjoy discounted premiums till age 20. Newborns up to six months old get free coverage! So, you get to enjoy cost savings while your family enjoys comprehensive healthcare protection that gives you peace of mind.
You can pay for your child's Integrated Shield Plan premiums via your or your spouse's MediSave – good news for new parents who may be cash strapped!
#3: Lifelong investment for your child's future
Because knowledge is power, the best investment for your child is giving them an education.
However, the rising cost of education causes parents to worry if they can afford their children's tertiary education in 10 to 20 years' time. So, naturally, the third thing you should focus on is purchasing a savings plan for your child's education.
The earlier you start, the more time there is for your savings and investments to grow. This is because of the power of compound interest.
There is a variety of different savings and investment options available, depending on your preferences and budget. Endowment savings plans purchased from an insurer or bank is a common way many parents save for their child's education.
The earlier you start, the more time there is for your savings to grow. That's the magic of compound interest.
One benefit of purchasing a savings plan from an insurer is the ability to add on protection riders for greater assurance. For example, with Singlife's savings plans, you can typically add on a cancer premium waiver – in the event that you're diagnosed with a major cancer, Singlife will contribute any remaining premiums on your behalf, so your child's education fund isn't impacted and will continue to grow.
Celebrate your new chapter in life, and enjoy the fulfilling journey of parenthood. While there may be sleepless nights and tantrums now, you can at least rest assured that with adequate financial planning and coverage, your children will have a smoother future ahead of them.