Do babies need life insurance?

[pinkpiggie]

My wifey says to get one cos the premium would be low and if 20 years from now, my dotter will be paying the premium locked in from year 1? is that true? or is it just a waste of money?

 

[Lewis.T]

My wifey says to get one cos the premium would be low and if 20 years from now, my dotter will be paying the premium locked in from year 1? is that true? or is it just a waste of money?

It's not a need, but most whole life plans now are limited premium, meaning by the time she's 20 it could be fully paid up and she can enjoy lifelong protection.

The reason behind getting insurance is so that when unfortunate events happen, your family still has the money to continue living as per regular expenses. She isn't earning an income and nobody is relying on her for money at the moment, but you are. So insure yourself!

What she needs though, is hospitalization coverage. Perhaps get one for her from the 5 insurers offering the integrated shield plans!

With that, you can get the best healthcare available for her in Singapore and not worry about the cost of hospitalization.

 

[Shiny Things]

My wifey says to get one cos the premium would be low and if 20 years from now, my dotter will be paying the premium locked in from year 1? is that true? or is it just a waste of money?

It can't be both?

Yeah, Lewis is right. The point of insurance is to cover your family's expenses if the breadwinner gets hit by a bus. Your daughter's not a breadwinner, so there's absolutely no point in buying a life insurance policy on her; if you buy an insurance policy, you're just writing cheques to the insurance company.

Get a hospitalisation plan, that's all you really need.

 

[mousehunt]

I did buy both; hospitalization and life insurance.

However I do agree that for babies, hospitalization plan is more important. For my kids life insurance, I just buy minimum like $25,000 sum assured and pay about 15/20 years of premium.

Hopefully by the time the policy hit 20 years, it at least can pay for my kid's first year university course fee.

 

[Perisher]

I did buy both; hospitalization and life insurance.

However I do agree that for babies, hospitalization plan is more important. For my kids life insurance, I just buy minimum like $25,000 sum assured and pay about 15/20 years of premium.

Hopefully by the time the policy hit 20 years, it at least can pay for my kid's first year university course fee.

Don't mix investment with insurance.

If you wanna save for kid's course fee, might as well buy STI+Bond. ES3 is yielding 3.3% while bond is yielding 2.5%+/-. Not to mention that there are growth potential and capital guaranteed portion.
Add in IWDA and you have the world as a backup if STI stagnant for 15/20 years.

 

[havetheveryfun]

My wifey says to get one cos the premium would be low and if 20 years from now, my dotter will be paying the premium locked in from year 1? is that true? or is it just a waste of money?

the premium may be low now for a higher payout.

but 20 years later, the same premium and payout will be worth much less due to inflation. so there is not really a lot of difference to me

 

[chopra]

I did buy both; hospitalization and life insurance.

However I do agree that for babies, hospitalization plan is more important. For my kids life insurance, I just buy minimum like $25,000 sum assured and pay about 15/20 years of premium.

Hopefully by the time the policy hit 20 years, it at least can pay for my kid's first year university course fee.

Ur last para is investment.
U were confused n bought e wrong thing.

 

[xersion]

let me share what i got for my baby...

1) hospitalize plan, this is a must as for my first child she was admitted to Gleaneagle 3 times within 2 years for high fever

2) Accident plan, this is good because u can claim for HFMD or even mosquito bite

3) 3 generation plan, DYODD on which company to purchase. I got mine with AIA. got it for her to retirement when she is old

 

[shareholder]

As a shareholder, it depends on the family. If can afford, insure. If too expensive, then let the child buy its own policy.

 

[hwmook]

My wifey says to get one cos the premium would be low and if 20 years from now, my dotter will be paying the premium locked in from year 1? is that true? or is it just a waste of money?

You throw away 20years of premium so that your daughter can pay the same premium 20 years later as now.

 

[xersion]

Actually this type of things is buy if u can afford it... Don't wait until things happen than u ask y I nv buy..

Sent from Xiaomi MI 4I using GAGT

 

[hwmook]

Actually this type of things is buy if u can afford it... Don't wait until things happen than u ask y I nv buy..

Sent from Xiaomi MI 4I using GAGT

Buy already so that you can get money when your daughter die. You need money from your daughter's death? Are you serious? It's a waste of money.

 

[edwinttt1978]

My wifey says to get one cos the premium would be low and if 20 years from now, my dotter will be paying the premium locked in from year 1? is that true? or is it just a waste of money?

Do babies have dependants?

 

[blengend]

Buy already so that you can get money when your daughter die. You need money from your daughter's death? Are you serious? It's a waste of money.

Maybe for funeral?
Or to recover some of the money used to bring up the kid... although this sounds quite morbid

 

[xersion]

Buy already so that you can get money when your daughter die. You need money from your daughter's death? Are you serious? It's a waste of money.

Why only if death leh?
See what it can do for u

http://www.moneysense.gov.sg/Understanding-Financial-Products/Insurance/Types-of-Insurance/Life-insurance.aspx

Sent from Xiaomi MI 4I using GAGT

 

[Perisher]

Why only if death leh?
See what it can do for u

http://www.moneysense.gov.sg/Unders...urance/Types-of-Insurance/Life-insurance.aspx

Sent from Xiaomi MI 4I using GAGT

If death is taken out, then you are basically doing saving/investing.
Bond+ETF = Lesser cost+higher invest-able sum+simpler to understand.

 

[Shion]

Common tactic spotted -- Buy early so that premiums are lower

Yes, buy early at younger age, you pay lesser. But is it practical, or is it a necessity ?

So it really depends on what you think. Are you thinking via the monetary side or the practical/necessity side...

 

[The Accountant]

Buy early so that premiums are lower

Yes, buy early at younger age, you pay lesser. But is it practical, or is it a necessity ?

So it really depends on what you think. Are you thinking via the monetary side or the practical/necessity side...

i share the same thoughts as you.

and a random thought, i'm interested to know if there are any endowment plans that invest into assets that are not easily accessible by retail investor. E.g private equity, venture capital, natural resources etc.

 

[xersion]

If death is taken out, then you are basically doing saving/investing.
Bond+ETF = Lesser cost+higher invest-able sum+simpler to understand.

I mean why look at death only?
Touch wood if a family is in a car and it crash, all die except the toddler and being handicap for life...
Who will be taking care of the toddler and how is the care taker going to have the fund?

Ur right in putting into ETF but don't forget it's not guarantee and u need how many years before the sum is significant enough.

I'm not suggesting that life Insurance is a must to buy many ppl will say "if I know it will happen, I'll buy $xxxxxxxxxx worth of Insurance first..

Sent from Xiaomi MI 4I using GAGT

 

[Shiny Things]

and a random thought, i'm interested to know if there are any endowment plans that invest into assets that are not easily accessible by retail investor. E.g private equity, venture capital, natural resources etc.

Yeah, some insurance companies do this (c.f. this Risk article from last year - if you get caught by the paywall, search for "insurers to ramp up private equity exposure" in Google News and click through there).

It sort of makes sense for insurers to invest in less-liquid asset classes with a small part of their funds, because they can afford to take the illiquidity risk by locking up part of their funds for the long time periods that PE/VC requires. They still need to keep a bunch of money in liquid bonds and equities and cash so they can pay claims, though, so it's not like they can lock up their entire asset base in PE/VC funds with 7- to 10-year lockups.