Saturday, December 15, 2007

Insurance for a baby

Hi Mr Tan

I've read up several articles on the purchase of insurance policies for children. My child is only 2 months old. Based on what I have read so far, it seems like I have to purchase hospitalisation/medical plan and education plan for her.

I suppose hospitalisation plan is the same as NTUC living insurance policy? If not, which insurance agency offers the best hospitalisation plan? How different is Medishield from NTUC living insurance?

Reply. The Living policy is suitable for an adult. It is costly and unnecessary for a baby. You should take the Medishield plan from CPF. It is adequate for the baby.

Based on your experience, which insurance agency offers the best investment linked plan and what type of unit trusts should we invest in?

Reply: You should buy the Flexi-Link plan from NTUC Income and invest in the Combined Fund. The Flexi-Link requires a starting single premium of at least $5,000. You can make additional investments through top-ups of a certain minimum amount. The charges are the lowest amongst all ILP plans in the market.
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2 comments:

Anonymous said...

Your baby needs a H&S medical plan that covers hospitalization only and no other plan. All those so called head start and education plans insurance agents encourage you to buy is rubbish if you haven't planned yours. Remember, you are the sole bread winner and nothing should go wrong and if it does make sure you leave enough to take care of your dependents until they are financially independent. If any thing happens to your child it is emotional and not financial .You don't depend on your child, do you?
Very often insurance agents like to play on your emotion and make you feel guilty. Do you think buying a lot insurance for your child and you are not insured enough makes you feel secure? If you are, it is false sense. Be on your guard when insurance agents come around and appeal to your weakness, love for child, to sell you insurance. Tell them it is financial nonsense.

December 16, 2007 6:51 PM
Anonymous said...

Your retirement need is even important than your child's education need. If you have not planned your child's tertiary education fund he or she can still get into university. There are loan from banks, from university, CPF,bursary and even scholarship. If you have not planned your retirement fund start learning to eat grass because your child or children can't give you handouts. So if insurance agents try to exploit your emotion about the importance of setting your child's tertiary education at the expense of your retirement you have to have the presence of mind to decide which is the priority.
Your heart will most likely to prevail over your head. There is a price to pay but don't tell your child one day.

December 16, 2007 11:12 PM

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