One of the most important milestone in life – having a new born baby.
Moving into parenthood, there is many new things to learn, earning how to care for and feed the new born. A crucial area some parents neglect is to start planning for the child’s future. Financial planning starts from age 0. This is due to insurability, since a newborn is most likely not to have pre-existing condition and would be able to get full coverage with no exclusions. In the unfortunate event that an illness develops in the growing up years, the insurance company will be oblige to provide coverage for as long as the policy remain in force. This is a benefit of getting your child covered early.
The first type of insurance to get would be Health Insurance, in particular hospitalisation plan, which in my opinion, a must-have for all child/adult. While Medishield Life provides basic coverage, a private integrated shield plan with riders will be able to cover excess hospitalisation charges that the basic Medishield do not cover.
Next is life insurance. A whole life insurance policy is recommended as the coverage will be for life. For term coverage, for example for 40 years, payment and coverage period will be for 40 years, after which the policy will lapse, and if the life assured require future coverage, a new plan will be based on new medical underwriting and the newly attained age. Should any health issues arise, no further coverage may be purchased. So, whole life is highly advisable. Limited pay option will limit the premium payment term to 10-25 years.
Optional: Endowment plans to prepare for university education expenses of the kids, given that the cost of education is growing over the years.
Do contact us at SkyFP, and we will be able to work with you on specific recommendations for your financial needs.