Dear Mr. Tan,
Is it possible to buy term insurance with critical illness coverage for my newborn baby? Or must I sign up for a whole life policy to have critical illness coverage?
I am looking to cover him up to age 65. I will also be getting for him Enhanced Incomeshield (Preferred) Plan. I feel that critical illness coverage is essential even with a Shield Plan as the Shield Plan only covers hospitalisation and surgical expenses but not living expenses, which could place a heavy burden on an affected person's family if the affected person is unable to find permanent employment for an extended time. Please advise.
REPLY
My view is that it is not necessary to buy Term insurance or critical illness coverage for a baby or a child.
If you feel that this is necessary, you should be able to find an insurance agent to sell the coverage for you. The agent is likely to convince you to buy a whole life policy.
Read this FAQ:
http://www.tankinlian.com/faq/choice.html
I thought effective from 2008 all newborn babies are to be covered for medical H&S medishield or other shield.It is compulsory.
ReplyDeleteFirst thing first you mustn't preempt
ReplyDeletethe future. Get what is needed NOW and now the baby's need is treatment cost. If the baby has an H&S plan it is enough.
Insurance is about insuring your immediate risk.Do not let your insurance agent beguile you to believe you need to cover what may or may not happen in the future.Immediate need is the priority.
I did a small sum limited premium Living Policy for my child, and when they are adult, premiums are already paid for and it covers them the wholelife.
ReplyDeleteAs parent, I am responsible, and I just like to plan for a critical illness plan for my liability.
I did a Term with Living Rider till they are age 65.
The combination covers the child $50K in dread disease and $170,000 in term plan.
You can say that I am doing insurance planning for the child.
As a child, the policy covers them, as part of parental responsibility, and over long term, is their protection as they reach adulthood and premium is very low and affordable.
It is a myth to say that children do not need critical illness cover.
ReplyDeleteMy own friend's 3 year old boy had acute aplastic anaemia and require bone marrow transplant. Aplastic Anaemia happen to be one of the dread disease covered in critical illness plan.
The procedure under KKH B2 ward cost $21,000+ and medication followup for 2 years costing couple of hundreds a month.
I think there is no harm to take up a critical illness plan for a child and if nothing happen young, is fine, by the time the child grows up as adult, the premium is affordable to carry on.
Critical illness plan can be limited premium wholelife or living term.
Shield Plan is the most basic that all children and all people must have, if one wish to have better than B2 ward care.
There is no right or wrong, each decides for their own needs.
- Thomas Phua
There is no such thing as " right or wrong" , neither is there such thing as "no right or wrong".If there are,clients can be 'recommended' any thing, right?.It doesn't matter whatever insurance you recommend. This is not found in the FAA. The FAA stipulates that all recommendations must be on" reasonable basis" which means "best advice" insofar as the financial circumstances of the client.
ReplyDeleteIf one can justify or substantiate the recommendation and it is on a reasonable basis the adviser is absolved of negligence even if the plan goes awry.
It is dangerous to say there is no right or wrong.
Parents can buy anything on their own. They bear all responsibility but if an adviser is involved the parents must be counseled. Remember there are competing needs.Whichever is important must be addressed first. Is the child's need a priority? Is critical illness cover a priority as vis a vis the parents' needs?
We understand the love of parents for their children. But don't end up putting the cart(wants) in front of the horse(needs). Insurance agents love to exploit this, the emotion of the clients. Beware of this type of insurance salesmen. They are after your money and not becuase they love you or your child. Distinguish the emotional issues from the financial issues.
Zhumeng:)
Penny wise, Pounds fool for those who try to save this type of money and not get any CI cover for kid.
ReplyDeleteGet a least a Term plan which cost barely $5 to $10/month.
How much are we trying to save?
Adrian Khiat
http://akhiat.blogspot.com