When it comes family insurance planning, many parents often ask
What kind of insurance do I need to get for my children?
How much coverage does my family really need?
How can I start planning for my children’s education fees?
With the wide array of insurance policies available today, many parents are confused over which types of insurance to choose and wonder how to adequately cover their family without breaking their wallets.
This series of blog posts focuses on the protection needs of families, especially those with young children and addresses the main concerns of parents when it comes to family insurance planning.
Here you will find out the key things to take note for your family’s insurance protection and cost effective tips to securing the right coverage for both parents and children.
Common Misconception
Many parents aspire to provide the best for their children and the focus is commonly placed on insuring the children, saving for future education fees etc. In the process, many parents tend to overlook their own protection needs.
In reality, the most important step for parents to take is to ensure adequate protection for themselves first. Why? As parents, our children’s livelihood depends on us from the time they are born til they become financially independent. Should any unfortunate event such as premature death, disability or illness happen to either parents, what’s going to happen to the poor child/children? Who is going to take care of their livelihood, pay for their school fees and bring them up?
Once we become parents, it’s no longer just about ourselves. Our focus shifts towards taking care of our children, providing well for them and securing their future. The question to ask ourselves is
Do we want to take care of our family and children for as long as WE live?
Or do we want to take care of them for as long as THEY live?
As a mum to be myself, I firmly believe in providing for my children for as long as they live and to take care of myself so I would not become a financial burden to my family. That’s why my husband and I make sure our personal insurance coverage are adequate and we put in place the necessary protection for our future child.
While unexpected turns in life are not what we expect nor wish to happen to any of us or our loved ones, the impact can be severe when the unexpected happens to the unprepared. It pays to be prudent and take steps to mitigate the risks.
Family Insurance Planning involves 2 portions:
1) Protection for Parents &
2) Protection for Children
This blog will address the first part – Protection for Parents. The second part will be addressed in a seperate post – “What insurance do I need for my children?”
Here are the 4 key protection areas that parents need to take note of and why they matter.
The tables below summarises why these areas are important, the amount of coverage required and the types of suitable insurance that can serve these needs.
A) Premature Death and Disability of breadwinner (s)
B) Critical Illness
C) Hospitalisation Bills
D)Long Term Disability Care
The above information serve as general guidelines to help you assess if your family is adequately covered in the major areas of concern.
For an accurate analysis, it’s best you meet up a qualified financial planner who will go through a detailed review of your existing protection plans and recommend suitable solutions tailored to your family’s goals and needs.
For more on insurance planning for your children, find out at “What insurance do I need for my children”
To Your Success and Happiness,
Yong Hui
