Benefits of Baby Insurance | Why Buy Baby Insurance Singapore

Health Insurance | Insurance

Consider what type of insurance (if any) your newborn requires. We break down the most common types of insurance to consider for your baby, as well as the benefits of getting policies early and a few plans to consider. Getting insurance for their newborn may seem natural and expected to some parents. Others may respond to the mere suggestion with something along the lines of “why do babies need insurance?” In this blog, we tell you about the benefits of baby insurance. 

Three benefits of covering your newborn sooner rather than later

We can’t say whether getting this type of insurance for your newborn is the best option for you right now. Each family’s financial situation is unique, as is their investment philosophy (for example, some people believe that whole life insurance is a poor way to save/invest). However, the list above should give you an idea of why some parents would choose to get such insurance for their children. While all of these insurance types can be purchased later in a child’s life, there are three advantages to purchasing these policies early. They are as follows:

Benefits of Baby Insurance

There are no pre-existing conditions

Because most babies are born perfectly healthy, there are no pre-existing conditions that would become policy exclusions. Covering them early provides the most protection against illness.

Peace of mind

Don’t underestimate the value of having peace of mind. Raising a family can be a challenging experience. Knowing that your downside financial risk is limited by insurance can help alleviate some of your stress.

Reduced premiums

The younger you start policy coverage, the lower your premiums will be (especially if there are no pre-existing conditions). You can also use your MediSave funds to purchase an Integrated Shield plan for each child. Furthermore, if you choose whole life insurance, many policies have a limited payment term after which the policy owner is protected for life. Purchasing this policy when you are young, and receiving lower premiums at the start, could save you thousands of dollars in premiums over the term.

Benefits of Baby Insurance

What to consider when purchasing insurance for your newborn?

We’ve looked at the most common types of insurance that people buy for their newborns, as well as the benefits of starting early. Here are our top insurance plan recommendations for each of the above categories. Keep in mind that many of these have overlapping benefits, which means that even the most devoted parents may not be able to afford all four types of insurance for their child, no matter how precious.

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