INSURANCE
Tongtong, I nv heard of the Aviva offer before. Is it only free for the first year or how many years? My manager says their plans are quite expensive and not comprehensive, so maybe it's free only in the beginning but it the long run may not be worth it already.
IMO,
Need To Have - Hospital plan. Get a shield plan that can add on with a cash rider to cover 100% of your bills. Anyway it's cheap for kids, about $200-$300 a year all the way till 30 where they can pay on their own already. Some companies offer you a "cash rider" which actually pays out cash upon hospitalization which they tell u can cover the "balance" but that's not very good cos co-insurance is a percentage figure of 10% and cannot be predicted. Whereas the 100% cover kind of riders will ensure 100% coverage irregardless of how much the 10% is.
"Yi Fen Qian Yi Fen Huo" Don't just go for the cheapest plan. Usually cheaper also means less coverage. Look at the type of wards covered, Private/Restructured Hospital, Annual limits, Lifetime limits etc. The price I quoted above can already get you the best plans in the market.
Life Plans - The purpose of life/disability/critical illness plans are for "INCOME REPLACEMENT". Meaning that should the person be struck with any of the three, the money should be able to cover the "income" the person is expected to contribute to himself/the family in the number of years he is expected to do so.
Theoretically speaking, children do not need life plans because they have no income. But, some people buy for the assurance of insurability. Meaning that if they buy now, even if the kid becomes unhealthy in future, he is already insured. Also, it is much cheaper for the kid to buy now then when he is older. The extra coverage could also be unforseen expenses should any of the above strike.
So, if you have the budget, you can start a very basic life plan for your child. Personally I would go for investment-linked plans and not traditional plans. 1)they are adjustable - your child can increase the coverage/premium when he grows up. rather than buying a new one. 2)the money is liquid - u can withdraw part of the funds during emergencies, whereas withdrawal in traditional plans are considered as "policy loans". 3)with the liquidity, it can also act as a form of savings - if u have limited budget and can't afford more plans, the funds can help to cover educational fund/retirement fund.
Saving Plans - Some will get this for university educational funding. As with current rules, if you are studying in a local uni, 90% can be loaned. If you want your child to be independent and responsible for his own education, then you don't really have to plan for this. However, if you are thinking of an overseas education, or if you want to ensure your child can comfortably study without worrying about the fees, then you can probably start saving for him. The cost of a four year LOCAL university education in 20 years time, excluding living expenses is about $60,000. And if you start a savings plan, it should cost you about $200+ per month now. If you want an overseas education then definitely you have to increase the savings, or diversify into other instruments that can give you better returns. IMO, this is just "Good to Have".
Sorry for being so loh-soh, I know it's a bit lengthy. Hope it's been helpful. Anyway if you all want to buy can look for me any time hor. hehe.