Having a baby is exciting. But adding another person (or more) to the family means that you will have to reconsider your family budget and finances. Ms Ho Lee Yen, Chief Marketing Officer at AIA Singapore, offers some points to consider.
Pregnancy marks an exciting new chapter in life. The birth of a child brings so much joy, but at the same time, a lifetime of commitment and responsibility.
As parents, we want to offer only the best for our children and ensure that they are well-provided for at all times. Between preparing for a baby and staying as healthy as possible, there is a lot to consider in the next nine months.
However, the most important question to consider is this: Are you and your baby adequately protected?
Using CPF Medisave for Pre-delivery and Delivery Expenses
Preparing for the birth of a child can be a costly affair for couples even before the baby is born. While Singaporean couples will be relieved to know that you can use your CPF Medisave to finance your pre-delivery and delivery medical expenses under the Medisave Maternity Package1, this is subject to withdrawal limits.
As such, you are encouraged to start saving as early as possible so that you are financially prepared to welcome a new member into your family.
Buying Prenatal Insurance to Protect Yourself and your Child
With the increasing trend of Singaporeans starting families later, there is a higher likelihood of pregnancy complications, which can be emotionally and financially distressing for parents-to-be.
In 2010, about 9,000 babies were hospitalised for congenital and neonatal conditions in subsidised wards at public hospitals. Even though they were in B2 or C class wards, some 700 had bills that came to more than $5,0002.
Accordingly, you may want to consider investing in prenatal insurance to ensure that you and your baby are covered should any unforeseen complications take place during pregnancy.
AIA Family First Baby is an all-in-one prenatal insurance and savings plan that provides protection for expectant mothers and even extends to cover their baby after he/she is born. In addition, the mother also enjoys guaranteed coverage without any medical underwriting3 if she buys a new policy with similar cover for herself when this policy is transferred to the child. This provides peace of mind for mothers and helps ensure that the child’s future is secured. It is also the first policy in Singapore to cover for conception through in-vitro fertilisation.
The plan comprises both a regular premium Investment-linked Policy (ILP) and AIA Family First Baby Cover rider that can be purchased between 18 and 32 weeks of pregnancy.
– Pregnancy Complications Benefit for 8 pregnancy complications4
– Hospital Care Benefit due to pregnancy complications4
– Death Benefit
For the Child:
– Congenital Illness Benefit for 18 congenital illnesses5
– Hospital Care Benefit4 for 4 specific condtions including inpatient hospitalisation due to Hand, Food and Mouth Disease (HFMD) and admission into ICU/ HDU
The savings aspect of the ILP helps ensure that your child receives a head-start in attaining a financially secure future when the policy is transferred to him or her within 60 days from their date of birth (no medical underwriting required). This means you’ll enjoy greater peace of mind right from the start!
Planning Beyond Birth
After your baby is born, the next thing to consider is a medical plan. If your child requires hospitalisation due to sickness or an accident, this may cause real strain on your wallet given the rising costs of medical care.
As Medisave-approved Integrated Shield Plans such as the AIA HealthShield Gold (HSG) Max allow the use of CPF Medisave fund to pay the premiums, they are relatively affordable. You can apply for the AIA HSG Max plan for your child from as young as two weeks from their birthdate.
AIA HSG Max offers a choice of 3 plan types (A, B and C) to match individual needs and allows unlimited lifetime claims1. To cover your child’s hospital bill from the first dollar, you may also consider the AIA HSG Max Essential, an optional add-on rider which covers for any deductible2 and/or co-insurance3 portions of your hospital bill, which are not covered by the basic plan.
The premiums for this rider are payable in cash and benefits6 include:
– Daily hospital incentive
– Immediate family member accommodation
– Post-hospitalisation alternative medicine (for cancer and stroke)
– Post-hospitalisation home nursing
– Emergency outpatient treatment due to an accident
Seek Professional Financial Advice
As you and your family’s financial needs continue to evolve, speak with your financial consultant on a regular basis to review your portfolio.
This is so that your consultant can help access your financial gaps and recommend suitable financial solutions to help you achieve your financial goal, and ensure that you and your family can lead fuller lives.
1. Ministry of Health http://www.moh.gov.sg/content/moh_web/home/costs_and_financing/schemes_subsidies/Marriage_and_Parenthood_Schemes.html
2. ‘Caring for babies with birth defects’, The Straits Times, 15 October 2012
3. The option for the mother to purchase a new investment linked, whole life or endowment policy offering equivalent or similar cover without requiring further evidence of insurability must be made within 60 days from the date of transfer of the policy cover subject to certain conditions being met.
4. This benefit will only be paid once provided the pregnancy complication arises in relation to the pregnancy which takes place at the point of application of the policy regardless of the number of pregnancy complications suffered by the mother. Upon payment of a claim, this benefit will automatically terminate.
5. This benefit will automatically terminate once a claim for Congenital Illness Benefit is paid. This benefit will be paid once while this rider is in force regardless of the number of congenital illnesses suffered by the child.
6. Subject to policy year limit and any overall benefit limits.
7. Deductible is usually a fixed amount that you have to pay first before the policy benefits are paid, up to a stipulated deductible limit each policy year.
8. Co-insurance is a fixed percentage of the medical bill that you have to pay after deducting the deductible amount.