every parent’s instinct is to protect their child. we can’t help it. it is human nature. however, how we do this may not always depend on instinct alone. It takes careful planning and smart decisions to ensure that our children are not only protected and cared for from day one, but that their futures are secure as well.
One way to do this is to find insurance for your child. Here are the whys, whats and costs of insurance plans in Singapore for your little one. When we’re done, you’ll have everything you need to make informed decisions for your family.
Reading: How much does health insurance cost for a child
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- Is it really that important to buy child insurance?
- prenatal insurance (for mothers and unborn babies)
- health insurance for your child
- life insurance for your child
- endowment plans & savings policies for education
- conclusion: how much can you afford?
Is it really that important to buy child insurance?
You may be wondering why it is necessary to purchase insurance for your child, considering that he or she is in perfect health and has no serious illnesses. in fact, her tender age and health make this the best time to take out insurance .
First, children qualify for full insurance coverage with no exclusions. Insurers do not cover ailments or conditions that you have before you purchase their plans. Since your child (most likely) has absolutely no history of illness, it’s easy to get full coverage. then, should any medical conditions develop in the future, she will be covered.
Second,the premiums will be very cheap because children in good health are considered low-risk cases from the insurer’s point of view. From here, insurance premiums can only go up.
You may also want to incorporate insurance as part of your financial planning for your child’s future at this stage. Beyond just bad things like illness or death, an endowment plan can help save for a future need like education or a major life event.
See also: CPT® overview and code approval | American Medical Association
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prenatal insurance (for mothers and unborn babies)
yes, you really can get insurance while pregnant! prenatal insurance, also known as pregnancy or maternity insurance, insures the mother and fetus throughout the pregnancy until delivery, and even after.
Generally covers a variety of pregnancy complications, such as placental abruption, amniotic fluid embolism, fatty liver of pregnancy, postpartum hemorrhage, and including death (knock on wood).
for the baby, prenatal insurance covers congenital diseases (for example, cerebral palsy, down syndrome and spina bifida) and hospitalization in the intensive care unit or high dependency. Some insurers cover the child up to three years old.
lump payment (usually cash up to $10,000) and coverage of hospital bills (up to $200 per day) can help defray additional costs when complications or illnesses arise.
If you want coverage for standard pregnancies, regular check-ups, and also routine deliveries, you’ll need to turn to international insurers like rhi (bupa) who.
when can you buy prenatal insurance?
For most prenatal insurance, you need to buy the policy at least 10 months before you get pregnant (how’s that for family planning?).
payments for this type of insurance tend to be very high. In order to collect premiums over a reasonable period of time, insurers often institute a waiting period before you can collect your plan, hence the 10 months.
If you are pregnant, you can still get prenatal insurance, but after the first trimester. some insurers allow it from the 13th week of your pregnancy.
why take out prenatal insurance?
complications and congenital conditions can add significantly to your medical bills and medisave or medishield life alone may not be enough. With prenatal insurance, at least money would be the least of your worries when problems arise.
Another advantage is that you can usually convert your prenatal policy into life insurance for your child. premium rates are better.
But more importantly, such conversions generally do not require a medical evaluation. that means that even if your newborn has any health conditions, you will still be insured.
how much does prenatal insurance cost?
Let’s look at some prenatal insurance options in Singapore. Premiums are typically one-time, starting as low as $300-odd.
See also: CPT® overview and code approval | American Medical Association
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health insurance for your child
Like regular health insurance for adults, this is insurance that covers medical costs such as hospitalization, surgery, and treatment of chronic or critical illnesses and accidents. Here are the main types of health insurance to consider for your child:
hospitalization and surgery (h&s): if your child is singapore, they would already have an h&s plan in the form of medishield life. but the life of medishield is not enough to cover public classrooms or private hospitals. sometimes we want something better for a sick or injured child. If that’s the case, you must purchase a private integrated protection plan to add to your child’s MediShield life. this can be paid for by your medisave.
Critical Illness: This policy pays you a lump sum when a critical illness is diagnosed, even if there is no hospitalization or treatment. an illness is considered critical if it is in stage 3 or 4 (advanced stage in which recovery is less likely). the money can come in handy to help pay for treatment.
personal accident (pa): kids can get into all sorts of scrapes, get hurt, or worse. this insurance helps cover the cost of putting your child back together.
why take out health insurance for your child?
Children are prone to illness and accidents, and there is no guarantee that children will not develop serious illnesses.
In the event your child ends up in the hospital, medisave can pay for your child’s medical costs, but has limits ($450 per day for hospitalization and up to $300 per day for hospital expenses for surgery). health insurance can help bridge the gap.
As mentioned earlier, childhood is a good time to get health insurance as premiums will be cheap. if that’s not enough, you can also use medisave to pay your children’s insurance premium, so you won’t even have out-of-pocket costs.
how much does child insurance cost?
Annual premiums for children’s health insurance can vary greatly from company to company. Also keep in mind that policies don’t cover all the same things. for example, some only cover hospitalization, while others allow you to claim many other medical expenses.
See also: CPT® overview and code approval | American Medical Association
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life insurance for your son
Life insurance pays a lump sum when the insured person dies or becomes permanently disabled. it is especially important if you are the sole breadwinner, have people who depend on you financially, or have debt. for adults, I would choose between term or whole life insurance.
term insurance is cheaper and offers coverage for a period of x years. after that period ends and nothing happens, you get nothing except the opportunity to thank your good fortune.
then your child will have to buy a new plan. But if he has health problems by then, his new plan won’t cover it because they would be considered pre-existing conditions.
whole life insurance has higher premiums, but offers lifetime coverage so your child doesn’t have to shop for another policy in the future. Payments will be released to your son’s beneficiaries when he dies.
Often, there is a small savings component built into the plan that also grows over time.
why buy life insurance for your child?
Unlike most types of insurance that immediately make our eyes glaze over, children’s life insurance has actually sparked debate.
For one thing, life insurance often replaces the income of the person who has died. Since the kids don’t earn anything (in fact, they cost a lot), there doesn’t seem to be any real need for it.
However, children are more insurable and enjoy lower premiums, so purchasing whole life insurance in advance gives them greater protection and eventually saves them money. you won’t have to worry about your coverage expiring at the end of the term.
Some parents also like the savings component, as it’s a form of savings for their child that can go towards funeral expenses, however morbid the thought may be.
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how much does whole life insurance cost?
here is a comparison of several popular whole life insurance plans in singapore. Compared to health insurance for your child, the premiums are much higher, which may make you wonder if you really need to buy a life insurance plan for your child.
See also: How Much Do Antidepressants Cost? With & Without Insurance – K Health
Don’t forget that you’ll also spend this yearly commitment on your son when he comes of age (although at that point, the premium could be much cheaper than his peers).
See also: CPT® overview and code approval | American Medical Association
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endowment plans & savings policies for education
Another type of insurance you might consider purchasing for your child is an endowment plan. it’s actually a subset of life insurance and pays a lump sum after a specified period.
There is now also a type of endowment plan called an education savings policy. spreads the payment over a child’s college years, rather than providing a lump sum when the policy expires.
why buy an endowment plan/education savings policy?
education in singapore is generally not that expensive, unless you count tuition or enrichment classes.
but university fees in singapore can be quite high, even at a local university. today, a college course typically costs more than $30,000.
If your child is aspiring to be a doctor, set aside about $130,000. If you’re thinking about an education abroad, the figure jumps to more than $200,000, give or take a couple thousand depending on where the foreign university is located. .
and these are figures for 2022. obviously expect them to increase when your child comes of age.
That’s why it’s important to set aside money for your child’s education and do it as soon as possible. if you have more than one child, the need increases.
While endowment plans seem like a surefire way to build that uni fund, don’t forget there are plenty of other ways to invest. With an endowment plan, there’s always a small risk of losing your principal or not getting 100% of the “projected” returns.
how much does a savings policy for education cost?
Like whole life insurance, these policies don’t come cheap. but payments are usually scheduled, so at least you have an idea of when your child will see the money.
See also: CPT® overview and code approval | American Medical Association
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conclusion: how much can you afford?
Now let’s put it all together. Prenatal insurance aside (since it’s just a one-time payment), here’s an estimate of how much different types of child insurance will cost:
If you look at the low end of premiums, you can buy your child the full suite of insurance policies for a little over $160 a month.
The question is: are they all necessary? of the lot, life insurance is probably the one you could avoid.
Life insurance closely replicates what health insurance offers, and doesn’t have the cash payment that can be used while your child is alive like an education endowment plan does.
Also, unlike health insurance, you can’t use your medisave to pay for your child’s life insurance, so you’d have to shell out cash.
Minus the life insurance premium, what you would actually pay is closer to $150/month. That’s about the price of a daily Starbucks drink. so you can make sure your child is well cared for and provided for, even if the unthinkable happens.
See also: CPT® overview and code approval | American Medical Association
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Would you (or would you) buy insurance for your child? why or why not? Tell us in the comments!
See also: DYK: Before 1973, It Was Illegal in the U.S. to Profit Off Healthcare | 1MD Nutrition™
