Almost every parents that I have spoken to has agreed that they need some insurance for their children. The awareness that we ought to get insurance for our loved one is a good thing to have. While agreeing that insurance is as important and basic to infant formula, however, it is not as easy when you are buying it.
Buying life insurance is a long-term thing, and once you have signed on the dotted line and had the policy for more than 15 days, you won’t be able to reverse your decision unless you take a big hit. If you later realise that your policy is causing too much financial strain on your pocket, you will have to replace it with another one and this is not something wise to do, because you will have to pay commission again and the new policy may not give you what you really need too.
Sometimes, in a much worse scenario, you might even have the new policy that cost you more on premium but cover you less. This is possible if at the time of applying for the new benefits or contract there has been some medical condition or complications prior to that, hence the new plan will probably come with exclusion on certain benefits or coverage, or it may come with a loading, which means you will have to pay a rate that is higher to get the same benefits.
What Kind of Insurance For The Baby?
That’s the basic question that most of them have got to deal with. Usually, when I work with parents who are welcoming their firstborn, they tend to have no idea about what they should do in this space, and for those who are not new to being a parent, they would feel less overwhelmed by this topic.
What you need…
Is definitely not have a high sum assured on your babies. You see, parents are the one who put food on the table. Your child don’t buy their own pacifier but you did it for them. So, you don’t have to buy insurance plan that pays RM 100,000 or RM 300,000 coverage in the event your child has left the world too soon (touch wood).
Your money should be used on what’s more important, such as children education, your own retirement or career plan, just to name a few.
What you really need is to have health insurance that covers your children. While I want to point out that I am not against having life insurance benefit on the child, but parents should ensure your child’s policy has health insurance as the main key piece, then only you start to think of other benefits. Below are 3 types of health insurance benefits that you will want to have in your child’s insurance policy.
- Hospitalisation Benefits (commonly known as Medical Card)
This one here is the non-negotiable feature or coverage you have to get. Be it a standalone plan or an investment-linked one, you just need to get it.
A stay in hospital is actually like presenting the hospital a blank cheque. You never really get to know what is the number they will write on this piece of blank cheque. When our child is in hospital, it will surely affect our work and daily schedule. It is very taxing to worry about child’s health and financial worries will make it worse. With this, insurance company will settle the payment charged by hospital on eligible expenses, parents can concentrate on their children and being there for them without distractions.
- Critical Illness Benefits
If our little one is critically ill, we would do whatever we could to get them good healthcare. When such incident happens (touch wood again), additional medicines, treatments, injections and daily expenses will probably go up. Recovering from critical illnesses take months, if not years, therefore, a financial safety net for the family will be crucial.
- Child Related Illnesses Benefits
Juvenile Insulin Dependent Diabetes Mellitus, Juvenile rheumatoid Arthritis, Leukaemia, Kawasaki Disease with Heart Complication, and a few more conditions… what they have in common is that these are child-specific illness and diseases that happen in children. Early detection and treatment greatly improved chances of recovery. Treatment in hospital will be taken care by hospitalisations benefits, however, the expenses after that may not be. You will be less stressed with financial support from this kind of benefits.
- Also, don’t forget Personal Accidental Coverage
You know, children are fearless, they learn by mistake, and they learn through pain. Personal accident policy is not really a health insurance, but is still rather essential. A fall, a burn, a cut, these are how they learn. But injuries require treatment and some injuries can open up a big financial scare in the parents wallet.
A personal accident policy is very affordable, you can get one from just below RM 9 a month. The definition of accident has also been catching up and extended to things such as food poisoning, dengue etc.
You don’t have to wait until your baby is born to start preparing his or her insurance. You can do it during pregnancy. This gives parents flexibility and peace of mind to deal with certain congenital conditions that come with birth.
Apart from insurance, it is also important to have a Will in order to give comprehensive protection to the baby.
You can always have a chat with us to understand more about each type of insurance products available. That is how you get a more objective, impartial and neutral opinion.