To all soon-to-be parents, having a new addition to your family can be a wonderful yet nervous event. After nine months of preparation and anticipation, you are finally able to welcome your little angel to the world. While you might think that you have prepared everything for them such as buying life insurance and endowment policies, have you really covered all grounds?
Watch this video as Loh Yong Cheng, Client Adviser at Providend, shares with you the must buy insurance plan for your newborn as well as other probable considerations.
1. As Parents, What Insurance Plan Should You Get For Your Children?
From a protection point of view, there is actually little need to cover for death as there is no need for income replacement.
So a good plan to consider getting for your child is a good Hospitalisation & Surgical Plan. In Singapore, it is what we called as a Shield Plan. It is to protect against unforeseen medical cost in the event that your child is warded in the hospital.
One feature to look out for is what we called Guaranteed Renewability. It will ensure that the insurer does not terminate your plan in the event of a bad claim experience.
Do start applying for this plan early, as soon as possible, because application process can be stringent. You also wouldn’t want any condition or illness to be excluded from your coverage because of any previous hospitalization.
2. How Do You Accumulate Towards A Sufficient Educational Fund?
One of the ways is to save and invest. Invest in something that you are comfortable with and within your risk tolerance. A 4-years local university fee will cost about $160,000 in 20 years’ time after factoring in tuition inflation.
Also, remember while we are accumulating for your child’s education fund, you are also saving towards your own retirement. So do start saving and investing early to take advantage of the compounding effect.
3. Why Is Getting Your Will Done Important?
Having a will allows you to nominate somebody you can trust to be the guardian of your child. A guardian will take care of your child’s general affairs until they are no longer minor.
Getting a will will also allow you to distribute your estates to your intended beneficiaries in a timely and cost-efficient manner.
As a retirement specialist, we can design a plan for you to accumulate towards your children’s education fund as well as your retirement.
Interested in finding out how to better plan for your child’s financial future while accumulating towards your retirement? Contact us at https://www.providend.com/service-enquiry/ or 6309 2488 for an exploratory session today.