How to do a comprehensive Insurance Planning for your children?
A comprehensive insurance planning for children will include areas like outpatient, inpatient and life coverage.
1. Outpatient (Personal Accidents & Diseases) and Child Critical Illness
Don’t we all agree that during their course of your child’s growing up years, they are curious in the things around them and they do not have any sense of danger in them? Personal Accident Plan covers for unforeseen situations such as knocks, falls, cuts, burns or even insect bites. Such incidents are common amongst younger children. This area of coverage will protect out-of-pocket expenses should it happen and if the accidents do not require hospitalization stay. Common diseases would be Food poisoning, Hand, Foot & Mouth Disease (HFMD) and Dengue Fever.
HFMD is spread from person to person by direct contact with the nasal discharge, saliva, fluid from the rash of an infected person. Both adults and children can be affected, but young children below five years of age are particularly susceptible. Most cases of HFMD do not require hospitalization stay and this type of plan will come in useful, in fact, this is the type of plan that most parents claim the most number of times. This type of plan works hand in hand with the inpatient plan and give almost close to maximum coverage except for small illness like flu, cough and fever, which can easily be covered by self or company medical benefits.
Child Critical Illness is a different set of conditions from the Adult Critical illness. Adult Critical illnesses can cover conditions like Cancer, Stroke, Heart Attack and elderly diseases such as Parkinson and Alzheimer and more. Child Critical illness will include Leukemia, Severe Asthma, Hemophilia, Kawasaki with Heart Complications and many more. This coverage is specific for children below age 18.
2. Inpatient (Accidents/ Illnesses) Hospitalization
With the rising medical costs, huge hospitalization bill size and the vulnerability of the child’s immunity system, most parents or parents-to-be are most concerned about this area and this is one of the first area of coverage that parents will get for their children. What are the plans available to cover inpatient medical bills?
The most common type of hospitalization plan is the Medisave Approved Integrated Shield Plans offered by private insurers which cover the hospitalization & surgical expenses for both illness and injury. This is an upgrade from the existing Medishield Life plan which covers only up to Government Restructured Hospital, B2/C class ward with limit in coverage. Integrated shield Plan has a a two categories of hospitalization coverage,
- Private hospitals and
- Government Restructured hospitals.
This plan can be paid using CPF medisave & cash. How do parents decide which hospital or ward class should they get for their children? When choosing a hospital, one must consider the option of Private hospital versus Government Restructured hospital. If the plan category selected is a Government Restructured Plan, in the event, if the parent decides to bring the child to a Private hospital, the bill will be subjected to proration, which means you will need to pay the difference using out-of-pocket cash. Next, for hospital ward class, one must consider the type of class ward that they hope their child can stay in. If you choose a plan that only allows your child to stay in a Class B ward but you later decide to upgrade him to a Class A ward, you’ll need to pay a higher deductible. However, if you take a higher plan but downgrade hospital wards, some Integrated Shield Plans even offer you daily cash benefit in return.
3. Life Insurance & Early Critical Illnesses
Why is it important of locking-in insurability of child as early as possible? Parents would not be able to tell if a particular child is going to be in perfect health from birth till they grow up and be independent. Early lock-in of coverage for your children will guarantee them a life plan when they grow up. This will act as a safety net for them and would give them a good head-start in their life journey. Some parents like the idea of giving a limited-pay life plan to their child as a gift to them and they no longer need to pay for premiums when they grow up to adult age. Some parents like the idea of a flexible life plan which performs both the function of life coverage as well as savings for education, which allows for partial withdrawal when the child needed it for university fees. Whichever plan they decide to choose will be beneficial for the child, as a plan is better than none.
Ong Yuan Mei, Cherry
Financial Services Consultant
M: 8100 6353
https://www.babyclub.com.sg/comprehensive-insurance-planning-children/https://www.babyclub.com.sg/wp-content/uploads/family-umbrella-1024x1024.jpghttps://www.babyclub.com.sg/wp-content/uploads/family-umbrella-150x150.jpgFeaturedParenting A comprehensive insurance planning for children will include areas like outpatient, inpatient and life coverage. 1. Outpatient (Personal Accidents & Diseases) and Child Critical Illness Don’t we all agree that during their course of your child’s growing up years, they are curious in the things around them and they...Cherry OngCherry Ongcherry@babyclub.com.sgAuthorBaby Club Singapore