As a new parent, welcoming a newborn baby into the family is a joyous occasion. However, with all the excitement comes a great responsibility. One of these responsibilities is to protect your child’s future and wellbeing by getting the right insurance coverage.
In this article, we will discuss the different types of insurance you can get for your newborn, their benefits, and the top insurance plans available in the market.
Advantages of Getting Insurance for Your Newborn Early
The first advantage of getting insurance for your newborn early is that it eliminates the possibility of pre-existing conditions. Pre-existing conditions refer to medical conditions or illnesses that exist before purchasing the insurance policy. Most insurance providers exclude pre-existing conditions from their coverage, which means that if your child develops a condition before you’ve purchased the policy, you may not be able to make a claim.
Another advantage of buying insurance for your newborn early is that premiums are generally lower for younger children. Insurers consider kids to be low risk, and as such, they offer lower premiums for their policies. By purchasing insurance for your child early, you can take advantage of these lower premiums and save money in the long run.
Lastly, getting insurance for your newborn can give you peace of mind. As a parent, you want to ensure that your child is protected at all times. With an insurance policy in place, you can rest easy knowing that your child is covered in case of unexpected events.
Types of Insurance for Newborns
There are three main types of insurance policies that you can buy for your newborn: health insurance, critical illness insurance, and personal accident insurance.
Health Insurance (Integrated Shield Plans – IPs)
In Singapore, all citizens and permanent residents are automatically covered by MediShield Life, which is the basic health insurance plan that covers hospitalization charges and selected outpatient treatments.
However, MediShield Life mainly covers up to Class B2 wards in public hospitals, which may not be sufficient for families who prefer to choose their doctors (Class B1 and above) or go to private hospital care. That’s where private integrated shield plans come in.
IPs are private insurance plans that supplement MediShield Life coverage by providing additional benefits such as coverage for private hospital stays, higher annual limits, and other optional benefits.
For newborns, IPs are particularly important because they provide coverage for congenital conditions that may not be covered under MediShield Life. Congenital conditions refer to medical conditions that are present at birth due to genetic factors or abnormal development in the womb.
To be eligible for IPs, newborn babies usually must be clear of any medical conditions 15 days after birth or discharged from hospital. If you’ve purchased maternity insurance previously and are eligible to buy an IP, you will usually have to purchase for your newborn within 30 – 60 days after birth to trigger this option. Do note that under this option even though you can purchase without medical underwriting, any pre-existing conditions discovered before purchasing the policy will be excluded.
Critical Illness Insurance
Critical illness insurance is a type of insurance policy that pays out a lump-sum amount upon diagnosis of a critical illness. Critical illnesses covered under the policy typically include cancer, heart attack, stroke, and kidney failure, among others.
While it may be difficult to think about your newborn getting critically ill, the reality is that it can happen. And if it happens, it may have long term implications to your finances or it may affect the insurability of your child in future.
Having critical illness insurance can provide you with peace of mind knowing that you have extra financial protection in case of a serious illness. The lump-sum payout can be used to cover medical expenses or to compensate for loss of income, allowing you to focus on taking care of your child without worrying about finances.
When it comes to critical illness insurance for newborns, there are two types of policies available: whole life insurance and term critical illness insurance.
Whole life insurance provides coverage throughout your child’s life and includes a savings component that accumulates cash value over time. You have the luxury of limiting your premium payment to 10, 15 or even 20 years. On the other hand, term critical illness insurance provides coverage for a specific period, and does not include a savings component.
Personal Accident Insurance
Personal accident insurance provides coverage for accidental injuries and death. This type of insurance policy is particularly useful because it provides coverage for outpatient treatments and medical expenses that may not be covered by other insurance policies.
For example, if your child falls and requires stitches, the medical expenses for outpatient treatment may not be covered by your health insurance policy. Personal accident insurance can provide coverage for these types of expenses, giving you extra financial protection.
Top Insurance Plans for Newborns
After understanding the different types of insurance policies available for your newborn, it’s important to choose the right insurance plan that suits your needs and budget. Here are some of the top insurance plans for newborns in Singapore:
Private Integrated Shield Plan
Private integrated shield plans provide additional coverage on top of MediShield Life coverage. These plans are offered by private insurers such as HSBC Life, Income, Singlife, Raffles Shield, Great Eastern, Prudential, and AIA.
Some of the benefits of private integrated shield plans include coverage for private hospital stays, higher annual limits, and coverage for congenital conditions that may not be covered by MediShield Life.
Whole Life Insurance with Critical Illness Plan
Whole life insurance with critical illness plan provides coverage for your child throughout their life and includes a savings component that accumulates cash value over time. This type of policy also includes a critical illness component that provides a lump-sum payout upon diagnosis of a critical illness.
Some of the benefits of this type of policy include coverage for medical expenses, compensation for loss of income, and a backup fund for you if the illness resulted in prolonged care.
Personal Accident Plan
Personal accident plans provide coverage for accidental injuries and death. This type of policy is particularly useful because it provides coverage for outpatient treatment and medical expenses that may not be covered by other insurance policies.
Some of the benefits of personal accident plans include coverage for outpatient treatments and medical expenses, and a lump-sum payout in case of accidental death or permanent disability.
In conclusion, getting insurance for your newborn is an important step in protecting their future and wellbeing. By understanding the different types of insurance policies available, their benefits, and the top insurance plans in the market, you can make an informed decision that suits your needs and budget.
Remember that getting insurance for your newborn early can eliminate the possibility of pre-existing conditions, provide lower premiums, and give you peace of mind knowing that your child is protected in case of unexpected events.