SingaporeMotherhood | Parenting
How to Keep your Promise to Protect and Provide for your Child, no matter what happens
A parent’s promise to a child. “I’ll always be there when you need me”. Being financially ready for unexpected turns in life helps you to hold true to that pinky promise.
It is every parent’s natural desire to protect and provide for their children to the best of their ability. In the past, putting clothes on our children and food on the table was slightly easier. However, as the world evolves and economies grow, the cost of living surges. Hence the cost of raising a child today is double what it used to be when we parents were young.
In Singapore, the average cost to raise your little human over 20 years adds up to a whopping S$360,000. Based on 2017’s average monthly household income of S$8,846 (source), this means that raising two children will take up at least 34 per cent of your household income. And yes, you will still have to prep for their tertiary education fees on top of this.
With such high financial commitments, parents tend to put insurance as the last priority on their budget expense sheet. They ask, “Why should I spend $300 a month on something so intangible?” Let us tell you.
1. To provide financially in your absence
As a parent you play multiple roles: cook, teacher, counsellor, caregiver… the list goes on. You work hard to provide for your family financially and emotionally, ensuring that they have whatever they need. But here’s a punch to the gut – “What will happen to them if you board heaven’s train earlier than expected?”
Having adequate life protection ensures that majority of the financial aspects — one of the biggest concerns — are taken care of. Consequently your loved ones can take the time they need to heal emotionally, without worrying about bills and payments. You will be able to keep your promise to protect and provide for your little one’s future as the funds they receive from your policy may be sufficient to see them through college. As they say, “A pinky promise can never be broken”.
With the ‘why’ sorted out, you can focus on the ‘how’. How much life insurance is enough? How many policies should you get? Every family has different needs. Hence it’s difficult to point out exactly what sum you should have in order to safeguard against any unexpected incidents. As a guide, the Life Insurance Association recommends an amount of at least 11 times your annual earnings as basic life coverage.
Having more protection means that your family will have a bigger financial buffer to weather whatever comes. But wait, there’s no need to rush out now and spend all your savings buying multiple protection policies. What if you could have one plan that offers more assurance with multiplied protection?
AIA Guaranteed Protect Plus (II) is a single solution that offers you the flexibility to enhance your protection against death and total and permanent disability up to 5x. In addition, it maintains affordability. What’s more, this plan doesn’t just give you boosted protection, it also helps you to save, with a guaranteed cash value that accumulates over time.
2. Have access to funds in case you get sick
Another reason why insurance is important is the access to ready funds for medical treatments. As a parent, this is welcome. Should anything happen, you have the assurance that there will be minimal impact on your key savings buckets such as retirement, your daily cash flow, and your child’s education.
With the increasing incidence of critical illnesses in Singapore, critical illness coverage has been flagged as a “must-have” rather than a “should have”. A recent survey conducted by the Life Insurance Association reveals a shocking fact that many Singaporeans will only be able to fund for critical illness treatments for up to a year before depleting all their savings. Why then do so many people not have critical illness protection? Again, it goes back to the point of affordability – many harbour the misconception that critical illness protection comes with a high price tag.
What about AIA Guaranteed Protect Plus (II)? Built with you, the parent, in mind, this gives you the option to supplement your protection with critical illness riders that offer financial protection against early, intermediate, and major stages of critical illness. Moreover, the rider coverage can follow the same multiplier as the basic plan — up to 5x.
And because protection doesn’t stop at you, the critical illness rider comes with an automatic child critical illness cover. This covers 16 child critical conditions such as severe asthma and leukaemia. This rider is also the first in the market to offer coverage against all three common behavioural conditions – ADHD, Autism, and Dyslexia.
3. Provide peace of mind for you and for them
So with AIA Guaranteed Protect Plus (II) you know that your family, especially your children, are well cared for regardless of life’s circumstances. With this peace of mind, you can live life to the fullest and enjoy all that life has to offer not just now, but every single day of your life. Why not?
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