As parents, we all want the best for our children, and part of that includes securing their future with the right insurance coverage. But with so many options available, it can be difficult to decide which policies to buy, how much coverage to get, and when to apply.
Let’s explore three essential types of insurance policies for children: hospitalization insurance, personal accident plans, and critical illness insurance. I’ll also share my personal experience to guide you in making the best choices for your children’s future.
Hospitalisation Insurance: A Crucial First Step
One of the most important insurance policies for children is hospitalisation insurance. As parents, we know that when our children fall sick, panic can quickly set in. We rush to the doctor or hospital, hoping to get the best treatment. Hospital bills can quickly become overwhelming, especially for serious conditions.
In Singapore, the Medisave Life plan is available to all parents and Permanent Residents, regardless of medical conditions. This plan covers hospital bills in public hospitals, but it typically only includes wards B2 and C1, which have fewer amenities.
If you want more comfort and privacy during your child’s hospital stay, you can opt for an upgraded plan, such as B1 or even private hospitals. However, these options come with additional costs. The key to deciding whether to upgrade is understanding your expectations for healthcare. For example, B2 and C1 wards have shared rooms and no air conditioning, while upgrading to B1 or private hospitals offers more privacy and better amenities.
From a personal perspective, I decided to secure an integrated shield plan (IP) for my children, which covers private hospitals. The reason I made this choice was to ensure I had a wider selection of doctors and hospitals and to reduce waiting times. While the premiums are affordable and fully paid through my CPF while they are young, I plan to pass the policy onto my children once they are older.
This decision was particularly important for me because the IP plan covers not only hospitalization but also post-discharge follow-ups and outpatient consultations related to hospitalization.
Integrated Shield Plans are private insurance plans that supplement MediShield Life. They offer broader coverage, including private hospital stays and a wider range of treatments. Some popular IPs for Singaporeans include:
- AIA HealthShield Gold Max: Known for its comprehensive coverage, including private hospital stays and a wide range of treatments. It also offers valuable riders like VitalHealth A to cap out-of-pocket expenses.
- Prudential PruShield: A popular choice with a strong reputation. It provides good coverage for both public and private hospitals, and offers a range of riders to customize your plan.
- Great Eastern SupremeHealth: Offers competitive premiums and a wide range of coverage options, including for both inpatient and outpatient treatments.
- Income Enhanced IncomeShield: This plan is known for its strong financial stability and good customer service. It provides comprehensive coverage for both public and private hospitals.
- Singlife Shield: A newer plan with a focus on value and innovation. It offers competitive premiums and a range of benefits, including telemedicine and mental health support.
- Raffles Shield: This specialized plan provides coverage for treatment at Raffles Hospital and other selected private hospitals. It is a good choice for those who prefer to receive care at these facilities.
Personal Accident Plans: Optional but Consider Your Risk Appetite
Children are naturally active, and accidents are bound to happen. From falling while playing to cuts and bruises, injuries are common. However, not every parent opts for personal accident (PA) insurance. The reason I didn’t purchase a PA plan for these incidents is that, generally, outpatient treatments are not prohibitively expensive, and I’m willing to bear those costs.
Furthermore, in the event of a more serious accident that requires hospitalization, my integrated shield plan would cover the cost. For parents who want extra coverage, a PA plan can be a good option, but it is essential to first ensure that hospitalization coverage is in place. If your family has multiple children, a family plan might be more economical. Here are some popular Personal Accident (PA) plans for children in Singapore:
- DBS Kids Protect: This plan offers up to S$80,000 in coverage for your child and includes benefits like accidental medical expenses reimbursement, daily hospital cash benefit, and a no-claim bonus.
- Great Eastern GREAT Junior Protector: This plan provides comprehensive worldwide coverage for accidents and sickness from as young as 15 days old. It offers benefits like accidental death and dismemberment coverage, medical expenses reimbursement, and hospital cash benefits.
- Income PA Junior: This plan offers coverage for accidents at school or during inter-school sporting events. It provides benefits like accidental death and dismemberment coverage, medical expenses reimbursement, and a recuperation allowance.
- CIMB PA Junior: This plan offers comprehensive protection for your child against accidents and infectious diseases, including an education fund and allowances for ambulance, hospitalization, and recuperation.
Critical Illness Insurance: Should You Consider It for Your Children?
Critical illness insurance is another option that parents might consider for their children, but it’s not as urgent as hospitalization insurance. Unlike adults, children do not have a loss of income to protect in the case of a serious illness. However, parents may still choose to invest in critical illness insurance to protect their own income.
If a child becomes seriously ill, a parent might need to take time off work to care for them, and critical illness coverage can provide a lump sum to compensate for the loss of income during that time.
For my own children, I chose to purchase critical illness term policies that cover them until the age of 99. The reason I went with a term policy instead of a whole life policy is because it was more affordable. At less than $1,000 per year, I secured coverage of up to $300,000 for advanced critical illnesses, plus additional benefits for relapse claims.
The long life expectancy of children means that the likelihood of a relapse is higher, which is why I prioritized coverage for multiple claims.
When considering critical illness insurance for children, the most important factor is to ensure that the parent’s insurance needs are fully covered first. Once you have the necessary protection for yourself, then you can consider critical illness coverage for your child. Here are some popular Critical Illness (CI) insurance plans in Singapore:
- AIA Beyond Critical Care: This plan offers comprehensive coverage for a wide range of critical illnesses, including early-stage cancers and heart conditions. It also provides a unique benefit that allows you to claim again if you are diagnosed with the same critical illness within 10 years of your first claim.
- FWD Big 3 Critical Illness: This plan focuses on the three most common critical illnesses: cancer, heart attack, and stroke. It offers a simple and affordable way to protect yourself against these major health threats.
- Etiqa 3 Plus Critical Illness: This plan also focuses on the three major critical illnesses and offers a unique benefit that pays out a portion of your sum assured if you are diagnosed with a non-critical illness covered by the plan.
- Singlife Big 3 Critical Illness: This plan offers twice the sum assured for cancer, heart attack, and stroke, providing additional financial security for these critical illnesses.
Prioritize Hospitalization Insurance, But Consider All Options
The most important insurance policy to secure for your child is hospitalization insurance. This will cover the major medical expenses that can arise in the event of illness or injury. Personal accident insurance is optional, and whether you choose to purchase it depends on your risk tolerance and financial situation.
Critical illness insurance is also an option for parents who want extra protection, but it should come after securing the proper hospitalization coverage.
How to Choose the Best Insurance Policies for Your Children
Choosing the right insurance policies for your child depends on their unique needs and your financial situation. Here are key factors to consider:
- Your Child’s Age and Health: Premiums are generally higher for older children or those with pre-existing health conditions.
- Your Budget: Insurance premiums vary significantly across different plans. Ensure the plan fits within your financial means.
- Coverage Needs: Decide whether you want coverage for specific areas, such as early-stage illnesses, critical illnesses, multiple claims, or comprehensive care.
- Preferred Hospital: Some plans provide better coverage for specific hospitals or healthcare facilities.
- Activities and Lifestyle: Be aware of age restrictions or exclusions for certain activities your child may engage in.
Comparing plans and consulting with a financial advisor is crucial to identifying the best option for your child and family.
If you’re unsure which policies best suit your child’s needs based on your current circumstances, or you’re seeking a financial advisor to compare these products and more for both your child and your family, feel free to reach out to us.
Disclaimer
Every effort has been made to ensure the accuracy of the information provided, but no liability will be accepted for any loss or inconvenience caused by errors or omissions. The information and opinions presented are offered in good faith and based on sources considered reliable; however, no guarantees are made regarding their accuracy, completeness, or correctness. The author and publisher bear no responsibility for any losses or expenses arising from investment decisions made by the reader.
