Shield your child with early insurance protection

Shield your child with early insurance protection

For many people, insurance is one of the basic building blocks of a financial plan.

And many argue - none more than those in the insurance industry - that "the earlier, the better".

But just how early in a person's life should one start buying insurance?

According to insurer AIA Singapore, a case can be made to start before a child is born.

Recently, AIA launched a pre-natal insurance and savings plan that provides protection for expectant mothers.

The coverage extends to the baby after birth and includes babies conceived through in-vitro fertilisation.

Its features include pregnancy complication benefits for the mother, and coverage for some congenital illnesses that the baby might suffer from.

A new policy with similar cover can be purchased without any medical underwriting within 60 days of birth for the baby, with the transfer of policy cover from mother to baby.

According to Mr Eddy Lim, head of protection and saving proposition and marketing at AXA Singapore, some of the common claims for children are for injuries suffering while playing sports and games, viral infections, and treatment for congenital illnesses.

For parents, it is all rather baffling, with insurers rolling out so many new and different products aimed at children.

Mr Peter Siong, vice-president and head of the sales division at NTUC Income, said the amount of insurance to obtain for children depends on the desired lifestyle, expectations and affordability.

"My recommendation for a child is, at the minimum, a health policy to cover hospitalisation and surgical expenses, a savings policy for the cost of education and other future expenses, a plan to cover critical illnesses as well as a personal accident policy to guard against mishaps," he added.

Should I buy life insurance for my children?

There are two schools of thought on this.

Some people believe that purchasing life insurance for children is unnecessary, given that there is no need for income replacement.

For those who prefer some form of coverage but are unwilling to make such a long-term investment - whole life policies end only on a child's death - there is the option of term insurance.

Great Eastern chief product officer Lee Swee Kiang pointed out that term plans have no cash surrender value, unlike whole life plans.

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