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Parents need to weigh the pros and cons of buying insurance for their child.

What insurance should I buy for my child?

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<p>Every parent wants the best for their child and this includes protecting them. Do you know that you can start shopping for insurance plans for your child even when he/she is still in mummy&rsquo;s tummy?</p>
<p>As insurance is usually a long-term commitment, parents need to weigh the pros and cons of buying insurance for their child. Here, we highlight the types of insurance and why you should or should not get them for your little one.</p>
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<h2>Prenatal Insurance</h2>
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<p>With Singaporean women getting married later and subsequently giving birth later, more attention needs to be given to the risks that come with a late pregnancy. According to the <a href="https://www.dbs.com.sg/personal/common-disclaimer.page?url=https%3A%2F%2Fwww.singstat.gov.sg%2Fmodules%2Finfographics%2Ftotal-fertility-rate&amp;3rdparty=%27DOS%27&amp;pid=sg-dbs-pweb-article-what-insurance-should-i-buy-for-my-child-txt-singstat">Singapore Department of Statistics</a>, the age group with the highest number giving birth each year is the 30-34 years old group, while the birth rate for those below 30 is declining.</p>
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<p><img src="/iwov-resources/media/images/Marketplaces/nav/what-insurance-should-i-buy-for-my-child/sub-header_01.jpg" alt="what-insurance-should-i-buy-for-my-child" /></p>
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<p>Some women may consider purchasing maternity insurance when they are pregnant to manage the higher risk of complications that come with a late pregnancy. Mothers above age 40 face a one-in-100 chance of a Down syndrome baby, one-third odds of a miscarriage and a two-fold risk of stillbirth. But before you purchase a maternity insurance plan, it&rsquo;d be helpful to understand exactly what it covers.</p>
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<p>The main purpose of getting maternity insurance is to provide coverage for pregnancy complications and congenital illness for the newborn baby. They are usually available as a single premium plan and can be useful to help parents offset additional medical costs arising from pregnancy complications.</p>
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<p>The maternity insurance typically offers a lump sum payout if the mother is diagnosed with pregnancy complications or if the child is diagnosed with congenital illnesses. Additionally, it provides hospital care benefits if the insured is hospitalised during the pregnancy and delivery period.</p>
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<p>Expecting mothers can purchase maternity insurance from as early as 13 weeks of the pregnancy for most plans in the market. It is advisable to get the insurance as early as possible so that you enjoy a longer coverage for the same premiums.</p>
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<p>Some insurers only provide maternity insurance as a bundle with other life insurance policies so that they can be transferred to the child when he or she is born.</p>
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<p>One advantage of maternity insurance is that there is guaranteed insurability for your child. For instance, if a child is born with birth defects or a health condition without prior coverage, he or she may be denied coverage from other insurers.</p>
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<h2>Health Insurance</h2>
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<p>Do you know that all Singapore citizen newborns born on or after 1 January 2015 qualify for the enhanced $4,000 MediSave Grant for Newborns? Eligible newborns will receive the MediSave grant automatically after the registration of birth.</p>
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<p>This grant can help parents defray the costs of their child&rsquo;s healthcare expenses, such as MediShield Life premiums, and the costs of recommended childhood vaccinations, hospitalisation, and approved outpatient treatments. Since the grant is limited and subjected to claim limits, it is best that parents consider some basic health plans to plug the gap.</p>
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<p>In terms of protection needs for children, the basic coverage should include a hospitalisation and personal accident plan.</p>
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<p>This is because young kids are susceptible to common ailments as they build their immunity and doctors would often ask for them to be hospitalised for observation. Thus, getting a hospitalisation plan such as an integrated Shield Plan can help to mitigate some of those costs.</p>
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<p>If your child is a Singaporean, he or she will be automatically enrolled into the MediShield Life plan. It provides basic health and surgery coverage sized for subsidised treatment in public hospitals and pegged at B2/C-type wards. You can of course, take up a private integrated Shield plan for your child, if you prefer a higher standard of healthcare.</p>
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<p><img src="/iwov-resources/media/images/Marketplaces/nav/what-insurance-should-i-buy-for-my-child/sub-header_02.jpg" alt="what-insurance-should-i-buy-for-my-child" /></p>
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<p>A personal accident plan can come in handy for children since toddlers or older kids tend to get into minor accidents. Most parents will likely bring their children to the Accident &amp; Emergency Department following any serious bumps or falls, and paediatric doctors usually err on the side of safety to advise hospitalisation for further observation.</p>
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<p>Personal accident plans such as the <a href=" https://www.dbs.com.sg/personal/insurance/accident-health/personal-accident-plans/multigen-protect?pid=sg-dbs-pweb-article-what-insurance-should-i-buy-for-my-child-txt-multigen-protect">MultiGen Protect from DBS</a> is relatively affordable at $13.41 per month for a classic plan and even covers hospitalisation due to dengue, Chicken Pox or Hand, Foot and Mouth disease (HFMD), a common childhood disease. Having the appropriate coverage while your child is ill can help alleviate any financial anxiety while allowing parents to focus on tending to the needs of an injured or sick child.</p>
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<h2>Life Insurance</h2>
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<p>Life insurance such as a term cover is typically for income replacement. So, it is not really a priority for a child although some argue that buying a life insurance plan at a young age has its advantages. It guarantees insurability since a younger person is likely to be free from pre-existing conditions. If an uninsured child unexpectedly develops a medical condition, future insurance applications may be subjected to premium loading or worse still, he/she may become uninsurable.</p>
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<p>Most parents who buy insurance for their kids opt to transfer the responsibility of premium payments to their children once they become financially independent.</p>
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<h2>Education Endowment Plan</h2>
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<p>The cost of tertiary education increases each year so it is prudent to plan for your child&rsquo;s future early. Some parents may consider getting an endowment plan to save up for their kid&rsquo;s education so that their child will not be burdened with debt upon graduation.</p>
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<p>An <a href=" https://www.dbs.com.sg/personal/insurance/endowment/default.page?pid=sg-dbs-pweb-article-what-insurance-should-i-buy-for-my-child-txt-endowment-plan">endowment plan</a> can help grow your savings with fixed returns, especially during a low-interest rate environment. It may also allow you to choose the payout age so that it matches with your child&rsquo;s educational milestones.</p>
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<p>While endowment plans are generally considered a low-risk method to build up that university fund, there are many ways to invest your savings to grow the tertiary funds as well. A combination of insurance and investments may be the way to go.</p>
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<h2>Assess your financial and medical situation</h2>
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<p>How much insurance to buy depends on your expectations, affordability and objectives. Do review your spouse&rsquo;s and your family history as well when making a decision. If there is a strong history of illnesses (cancer, asthma&hellip;etc), it is better to buy medical insurance for a child when he is young to lock in his insurability.</p>
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<p>Check out DBS NAV Planner to analyse your real-time financial health. The best part is, it&rsquo;s fuss-free &ndash; we automatically work out your money flows and provide money tips.<br /><br /><a href="https://internet-banking.dbs.com.sg/IB/Welcome?pid=sg-dbs-pweb-mp-articles-nav-what-insurance-should-i-buy-for-my-child-img-log-in-now&amp;SERVICE_NAME=fp_dashboard"><img style="width: 150px;" src="/iwov-resources/media/images/Marketplaces/nav/nav_login_button.png" alt="nav-login" /></a></p>
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<p style="color: #909090; font-size: 13px;"><strong>Disclaimers and Important Notice</strong><br />This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability</p>

What insurance should I buy for my child? 

What insurance should I buy for my child? | DBS Singapore

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