Accident plan for newborn

[Lewis.T]

You like to post articles never post this one from your favourite dollars and sense author Timothy Ho?

Why You Should Get Child Insurance

Your financial advisor may give you a variety of different reasons but we will just narrow it down to one important reason – insurability.

Since a newborn child would most likely have no history of pre-existing conditions or illnesses, the child would be able to obtain full coverage with no exclusions. In the unfortunate event that an illness or condition develops at a young age while growing up, the insurance company will be obliged to provide coverage for as long as the policy is in effect.

That is why it is always important to get child insurance early. By getting coverage in place early, you ensure that you child’s medical needs are covered, regardless of what is to happen in the future.

When it comes to a child, a whole life insurance may be the better option compared to a term insurance. Term insurance only provides coverage for the duration of the term period while whole life insurance provides coverage for life.

Say for example if you buy a 30-year term insurance for your child, you would need to pay 30 years for coverage. At the age of 30, your child would need to buy a new term plan for future coverage. If he or she has health issues, they may not be able to get further coverage, even if they are willing to pay for it.

In contrast, for whole life insurance, the coverage will be in effect for life, or until you surrender the policy (not advisable). Most whole life insurance work via a limited pay policy. For example, you could be paying insurance premiums for the 1st 20 years of the policy. Thereafter, payment stops but insurance coverage is in effect for life.

We did a simple price comparison based on information we found online. Interestingly, this was what we found.

Intuitively, some people may expect a whole life insurance policy to be more costly, especially since it also contains a cash value component. Surprisingly though, it is actually cheaper to buy whole life insurance for a child for the first 20 years of their life, and to have coverage in effect for the future, then to buy a term insurance policy when one is much older.

http://dollarsandsense.sg/types-of-child-insurance-to-buy-for-your-children/

Of course this could be less of a priority than to cover for education expenses etc, but if a family has a higher risk of genetic disorders it could be a higher priority for example. Review your own personal/family circumstance(s).

 

[deepblueli]

Assuming you set aside 10% of your net income to buy insurance or protection, and you have some budget left to buy some protections for your kid after buying the top medical insurance with rider for him. Will you get term CI coverage or WL with CI or PA?

 

[Lewis.T]

WL would be cheaper most of the time. PA is a separate discussion, they cover different things.

 

[akwl88]

how was your night at mbs?

so many of your clients paid for your party lol

 

[anfielder]

Assuming you set aside 10% of your net income to buy insurance or protection, and you have some budget left to buy some protections for your kid after buying the top medical insurance with rider for him. Will you get term CI coverage or WL with CI or PA?

My answer would be none of the above... I won't spend more on protection than necessary just because budget is available.

 

[dendii]

I think Bigoya and I has already been emphasizing on the CI part already.

Dumbest Insurance - Life Insurance for Child
Life insurance for a child ranks to me as the dumbest Life insurance policy out there.

These policies are never bought; only sold to.

From one salesperson to another, must give a round of applause for these super salespersons - these are the ones who can sell ice to Eskimos!


Take a step back and press reset for a moment:


1. Are you a dependent of the child?

2. What is the coverage for?

a) To benefit from your child's passing?

b) To pay for an elaborate and grand burial for all to see?



If your motivation is fear that your child may catch an illness or accident, wouldn't a Critical Illness and/or Hospital and Surgical plan be better?

Or perhaps you want to give your child a better future, wouldn't a Savings or Education Fund be better?


Of course you will never be sold Life insurance for a child by itself.

If you are a student of the recent sub-prime meltdown, you would understand the wonders of packaging and repackaging of financial products until everyone looses sight of the unsavoury bits.

What you really wanted were the medical benefits and savings plans for your child - your motivation is love.

What you never bargained for was as part of a set menu, you got something you never needed in the first place - greed and ego were never part of your motivations...


If you knew what you knew now, you would have gone a la carte.

http://singaporemanofleisure.blogspot.sg/2014/05/dumbest-insurance-life-insurance-for.html?m=1

 

[dendii]

I will get a PA. WL or Term CI will have to look more into the details.

Ideally, not too much should be spent on your child, but that doesnt mean nothing at all imo.

Avoid the typical sales pitch of having a Saving Plan for them though.

Assuming you set aside 10% of your net income to buy insurance or protection, and you have some budget left to buy some protections for your kid after buying the top medical insurance with rider for him. Will you get term CI coverage or WL with CI or PA?

 

[deepblueli]

Thanks all for the comments.