Child Insurance in Singapore

Children naturally take up the bulk of their parents’ time and focus. However, as adorable as they may be, children are also prone to various risks at any given time. But one of the ways parents can make sure their kids are protected is through obtaining insurance policies for them.

Parents can’t help but think about their children constantly, and are always looking out for their best. But those cute and sometimes clumsy little bodies can get into precarious environments and situations at times, right? So, to help protect your child from possible misfortunes in the future, consider buying child insurance for your child.

Why child insurance is something parents should consider

You may be wondering if it’s important or even necessary to get insurance for your child, since most children are actually healthy and disease-free. Well, here are a few reasons why:

Insurability 

The fact that babies and children are young and most likely have no pre-existing conditions or illnesses actually make them one of the best candidates for insurance! Children are subject to being a low-risk policyholders in the eyes of insurers.

This means that the policies children avail of are for full coverage and do not have any exclusions. If your child is covered and develops any medical condition in the future (hopefully not!), then the coverage will oblige insurance companies to take care of your child. This frees you up from financial worries, and gives you the space to focus on helping your child regain his or her health.

Lower premiums

Purchasing insurance for children at an early age is significantly cheaper than availing of one when they are older. Consider this is a wise financial move, causing you to save more money in the long run.

Coverage early on

When it comes to insurance, younger is actually better. In case of any illness, hospitalisation, or death, being covered early on is advantageous for children as they grow older. Since unexpected events cause much emotional strain on any person’s loved ones, covering the financial aspect will make these challenges easier to cope with.

What kind of insurance is available for children?

If you are convinced that child insurance is for you and your child, consider the following types:

Prenatal Insurance

Yup! You heard it right. A mother and her unborn child can get insured throughout the entire pregnancy, up to the birth of the child, and even after. This provides protection from possible complications that may occur during the pregnancy as well as from congenital illnesses that may require treatment. If no complications occur, this type of policy is usually converted to life insurance for your child.

If you’re interested in learning about maternity insurance, we’ve got something that’s right up your alley: Maternity Insurance: NTUC Maternity 360 plan VS GE Flexi Maternity plan

Health insurance 

This covers medical expenses such as hospitalisation, surgery, and treatment for the policyholder in case anything happens. You may consider various types of health insurance for your children such as hospitalisation and surgery, infectious diseases, critical illnesses, and personal accidents. This is highly recommendable since children are prone to injuries and illnesses.

Life insurance

Usually, life insurance policies refer to the lump sum payment given to the beneficiaries of policyholders when they pass away or incur a permanent disability. There are two types of Life insurance – Term and Whole Life. Term insurance is much more affordable as compared to life insurance since it only offers coverage for X count of years. Though, once the policy expires, that’s it. Your child would need to get a new one (and this may be more expensive than the original policy). Whole life insurance provides coverage for their entire life. For children, it is highly advisable to purchase whole life insurance as it may save you more money in the long run. Also, life insurances come with a ‘savings’ component that will be very beneficial later on.

Endowment policies

This type of policy acts as a subset of life insurance and pays a lump sum to the holder when the policy matures. The goal of an endowment policy is to encourage savings which can be used for various things such as a wedding gift for your child or to serve as payment for their own property. But the usual purpose of endowment plans is usually for your child’s education since universities in Singapore is quite expensive. Though, paying for their dream school is highly achievable. Let the compounding gains of insurance work as an investment in your child’s future. It is best to start now by setting aside a little for your child’s education so that the savings will grow effectively to pay a lot of the fees that a college degree demands.

MoneySmart has a good article on comparative data between different types of policies, which you can find here.

The Bottom Line

However, before you even consider insuring your child, make sure that you have adequate insurance for yourself. Financial adviser Hariz Arthur Maloy says, “Do make sure that you and your partner are adequately covered first. Because they depend on you to have a solid future for themselves.”

Purchasing child insurance is a major decision between parents. Make sure that both of you carefully look and plan out your children’s future. Be humble, honest and realistic in your financial goals and aspirations. And be very disciplined. Paying for child insurance is a long term endeavour. Be willing to do the grunt work of saving and setting aside for a long while as the years go by. You will definitely not regret it in the future!

Before you go, I have one more recommendation for you. For a further foray into this topic, here’s Can Online Insurance Savings Plans Promote Greater Financial Security Among Singaporean Women?