Kids insurance -education plans
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yeah… transfer the risk of loss of earning ability to other people during our financial active years
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nowadays, people are buying such insurance already, the only problem now is, they do not really know what they buy or they are attended by the not so nice agents who only care about the comission they gonna get…
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daddy2007:
Yes I agree too, get the highest plan and it saves you a lot of heartache, just wondering though when should I downgrade, oldest kid already in Primary School. What do you think? Cos quite heart pain to cough out so much for my 2 kids. And actually one of them did not even need it so far.I fully agreed that private hospitalisation plan is a must. I bought the highest private plan for my daughter when she turned 1. Don't know is it lucky or unlucky, she has been hospitalised twice when she was 2+. So far didn't pay a cent at all for the hospital bill (both occassion staying at Private A ward)
It is good that one buy the highest H&S plan (those entitled Private Hospital) for a yound child since the difference between the next plan (for age below 18) is not alot. It is easier to downgrade to a lower plan then to upgrade to a higher plan. Once the child has any medical history, there will be bound to have exclusion clause
As for endowment, I have my reservation. The returns is quite small (~2-3% p.a) over 18 years. The winner is the agent & the insurer
PS: I am not vested as I am not a financial planner -
wywy2:
The H&S premium is paid using MediSave so should be quite ok right? I presume you are talking about the Rider which we have to pay in cash? About $100+ per annual for the Rider. So I just save $10 each month to pay for the Rider
Yes I agree too, get the highest plan and it saves you a lot of heartache, just wondering though when should I downgrade, oldest kid already in Primary School. What do you think? Cos quite heart pain to cough out so much for my 2 kids. And actually one of them did not even need it so far.
Personally I will only downgrade when I am 60+ when the premium is too high
As for the kid, I will continue to pay for her until she turns 21 where I will ask her to pay for herself. $100+ p.a. to buy a piece of mind which IMHO I think is worth it. Of course the premium might grow over time.
Insurance is about transferring of financial risk and to use it as leverage to protect one's wealth. So I tell myself that it is better to play safe to pay a sunk cost as one will not know when one will need it. This is just my personal view. -
daddy2007:
Hi daddy2007,
The H&S premium is paid using MediSave so should be quite ok right? I presume you are talking about the Rider which we have to pay in cash? About $100+ per annual for the Rider. So I just save $10 each month to pay for the Rider
Personally I will only downgrade when I am 60+ when the premium is too high
As for the kid, I will continue to pay for her until she turns 21 where I will ask her to pay for herself. $100+ p.a. to buy a piece of mind which IMHO I think is worth it. Of course the premium might grow over time.
Insurance is about transferring of financial risk and to use it as leverage to protect one's wealth. So I tell myself that it is better to play safe to pay a sunk cost as one will not know when one will need it. This is just my personal view.
Thanks for your input on this. I guess I was asking as I just wanted to be sure. For money matters, I need to learn more as I feel I can be a bit blur about such things. Tks!! -
true … just feel as parents we should at least try to provide them some simple coverage till they are old enough to pay and decide on what they want
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wywy2:
For money matters, I need to learn more as I feel I can be a bit blur about such things. Tks!!
No problem. I am learning too.
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agree with daddy2007 on the piece of mind thingy.
i’m still looking around for an affordable H&S rider plan but hv bought education plan for my kids. no endownment or other plans coz pocket hole getting bigger wif the nursery/childcare expenses! -
daddy2007:
As for the kid, I will continue to pay for her until she turns 21 where I will ask her to pay for herself. $100+ p.a. to buy a piece of mind which IMHO I think is worth it. Of course the premium might grow over time.
My parents bought alot of insurance for me when I was younger and like you said, they ask me to pay for them on my own when I turn 21.
FYI, it was not easy because I was only on scholarship allowance ($800/mth) then. The insurance premiums runs in THOUSANDS a year. Even after changing them to monthly payments, half my scholarship allowance (it's like a monthly pocket money) was gone.
Really resent my parents for buying so many policies at that time!
Then I argued with my mum to continue paying for me at least till I started working and got a proper salary. (I was also saving up for wedding at that time!)
End up, my mum continued to pay part of the premiums for me until I got married.
Cos my brother studied for many many many years (post grad), my mum cashed out some of the policies and till now (he's already working), she's still paying the rest for him cos his premiums are SKY HIGH, alot more than mine and he only started working beginning of this year.
If it's only $100++ per annum I think it's still manageable (squeeze some out from monthly allowance).
However, think again. What would your girl be doing at age 21? Most likely still in uni without an income (and the allowance would still come from you). Will be be fair to pass on the payment of premiums to her?
It'll be fairer to say that they will take over the premiums when they finish uni and start work. -
mrswongtuition:
Sometime I am quite pissed off with some agents for \"attacking\" on the emotion side of the parent when selling insurance. They will try to convince the parent that they should save (by buying endownment) so that the children will have tuition money, they should buy insurance for the child when they are young as the the premium is low and the child should be protected.
My parents bought alot of insurance for me when I was younger and like you said, they ask me to pay for them on my own when I turn 21.
Really resent my parents for buying so many policies at that time!
Being a parent which will naturally care for the child, one's heart will rule over the head and start to buy alot of different type of policies for (or related to) the child
I still don't understand why a child need insurance (to cover death & critical illness). They might have forgot the original intent of insurance. My opinion is that insurance is to provide means for the dependents to continue to live if the insured passed away. A child will have no dependent to provide for!
The reason why the premium for a child's insurance is low is because the probability of a claim (for the child) for death or critical illness is low. The insurer is not stupid and they exist to earn money :lol:
My belief is that a good H&S plan for the child is good enough. Insurance is not required until probably the child turns to adult
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