Singapore is a wonderful place to raise children but financial costs are high. Amongst other things, healthcare can take up a huge portion of your pay check. Insurance policies such as family health insurance and life insurance are able to help cover some of these expenses. Read on for insurance and financial matters you need to think about today if you’re a parent or parent-to-be in Singapore.
#1 Get yourself covered first
First and foremost, it’s important to make sure that your children will be looked after financially if something happens to you and your spouse. So, parents should consider taking on term or whole life insurance plans and critical illness plans if you haven’t any in place already.
Tokio Marine offers a term life insurance plan called TM Term Assure (II). What’s great about the policy is that you are able to choose the currency for it, whether it be Singapore, Australian, US dollars or the British Pound. Through term life insurance, you pay lower premiums compared to whole life insurance as there’s no cash value. With a term life policy, you choose a timeframe for the coverage which is maintained as long as you pay your premiums. This is unlike a whole life insurance plan that covers your entire life while you typically pay premiums for a fixed period. You can also choose to add on early critical illness and critical illness riders to enhance the coverage.
You could even consider starting your child early with a term life plan. Tokio Marine has the option of adding the Kidassure GIO Rider, which covers hospitalisation for common childhood illnesses – might come in handy!
#2 Get health insurance for your kids
As an expat living in Singapore, you won’t have the same access to subsidies in the public health system, so it’s advisable to get family health insurance cover so you don’t have to pay out of your own pocket. Getting your children covered from a young age also helps them to stay covered in the event that a new medical condition emerges.
If you travel frequently, opt for an international rather than local insurance policy so that you can have access to care wherever you may be in the world. International health insurance is generally more expensive but you tend to get higher coverage limits and more benefits – and those can be very useful if a medical emergency occurs.
#3 Besides family health insurance, get a personal accident policy
A child’s fall that requires minor medical attention or stitches can be claimable through a personal accident plan. Besides injuries, some policies include coverage for common childhood illnesses such as hand, foot and mouth disease. Tokio Marine offers TM Protect PA, a personal accident policy that includes child cover for up to four kids aged one month to 18 years.
At Tokio Marine, personal accident plans go beyond injury coverage and common illnesses – there is also the TM Protect MosBite plan, a specially designed coverage for dengue fever, Zika, chikungunya fever, malaria and yellow fever. This can be especially helpful in Singapore where mozzies are rife.
#4 Save for your kids’ education
With expensive school fees at preschool and international schools in Singapore, it’s good to start saving early. Instead of leaving money in the bank, consider investment-linked policies or endowment plans that help you to save and grow cash for your kids’ future.
For example, Tokio Marine’s TM Atlas Wealth plan offers a bonus of up to 19.5% per year for the first five years, followed by up to 0.3% yearly for subsequent years. With this investment-linked insurance policy, you’ll pay premiums for between five to 25 years and can choose to either have an advanced death or basic death benefit. The policy is similar available in different currencies.
If you prefer endowment plans, Tokio Marine recently launched TM Nest Egg (FlexiSaver), find out more on their website.
Written in collaboration with Tokio Marine Life Insurance Singapore
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This information in the article is not intended as an offer or recommendation to the purchase of any insurance plan. It does not have regard to your financial situation, specific investment objectives and any of your particular needs. Kindly obtain the required product disclosures and seek advice from a financial adviser before making a commitment to purchase any insurance plans. The information has not been reviewed by the Monetary Authority of Singapore. Protected up to specified limits by SDIC.