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Insurance for Minors in Singapore

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Insurance for Minors in Singapore

2021-02-04T12:17:13+08:00December 6, 2019|0 Comments

Insurance policies are important not only for adults who live in Singapore, but for minors as well. Certain insurance policies in Singapore are specifically tailored to protect minors. It is thus important for parents to consider which insurance policies would best protect their children.

Insurance for Minors in SG

There are many different types of insurance policies available in Singapore. Almost any individual or business has access to some form of insurance in Singapore because of the many active insurance companies in the country. The most common types of insurance which exist in Singapore are related to vehicles, health, homes, and life. Most individuals in Singapore own at least one of these types of insurance.

Businesses also require specific types of insurance policies which provide protection against specific risks faced by a particular business. Many of these insurance policies are used in instances of unfortunate events such as disasters, damages, injuries, or even deaths. There are also insurance policies available for more specific needs; certain insurance companies in Singapore might be able to provide such specific types of insurance, though which ones are provided will differ from company to company.

There are also certain forms of insurance which specifically cater towards minors in Singapore.

 

Why Insurance for Minors is Important

Children and teenagers are more vulnerable to the circumstances of life than are adults. However, their parents can mitigate these risks by purchasing suitable insurance policies for their children who are not of age. Such purchases of insurance do much to protect one’s children from possible misfortunes which may strike at some point in the future. Therefore, it is not only important, but necessary for parents to purchase insurance for their children in order to grant them a form of official protection. There are several reasons why insurance policies should be purchased by parents for their underage children.

One such reason lies in the fact that there is less risk involved in insuring minors when compared to insuring adults. This is because in most cases, minors are less likely to have been afflicted by any pre-existing conditions or illnesses. This makes them low-risk policyholders to insurers, which in turns means that many of the policies available to minors in Singapore provide full coverage without any exclusions. Therefore, if a minor were to suffer from a medical affliction in the future, the coverage will allow insurance companies to provide financial sustenance in such a trying situation.

Furthermore, it is far cheaper to purchase insurance for minors than it is to do the same for adults. Therefore, parents in Singapore ought to purchase insurance for their children before their children come of age. The younger the child is, the more advantages will be received by the child. Therefore, in cases of any severe illness, hospitalization, or death, it is preferable to be covered at an earlier age.

 

Insurance Plans for Minors Which Exist in Singapore

Now that it has been clearly determined that all minors in Singapore ought to be insured whenever possible, the insurance plans which cater to minors which exist in Singapore ought to be discussed. Insurance plans for minors protect any underage person in Singapore. There are several types of insurance plans which exist for minors in Singapore.

 

Prenatal Insurance

It is possible to insure one’s child even before the child is born. This is because insurance policies in Singapore exist which allow a mother and her unborn child to be insured throughout the entire pregnancy up to the birth of the child; such policies maintain their validity even after the child is born. Such insurance policies provide protection from possible health issues that may arise during the pregnancy or from congenital illnesses that may require medical treatment. If no complications occur, prenatal insurance in Singapore is usually converted to life insurance which will protect the child.

 

Health Insurance 

Health insurance for minors in Singapore covers medical expenses such as hospitalization, surgery, and medical treatment for the policyholder. There are various specific types of health insurance which may be purchased in Singapore. Among these types of health insurance minors include those related to hospitalization and surgery, critical illnesses, personal accidents, and infectious diseases. Parents of children who tend to be somewhat injury-prone or illness-prone are especially advised to purchase health insurance for their children; nevertheless, all children benefit from the health insurance which they might receive.

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Life Insurance

Life insurance policies usually refer to the primary payment made to the beneficiaries of policyholders after the death or permanent disability of policyholders. There are two types of life insurance which may be purchased for minors in Singapore. These are term and whole life. Term insurance is more affordable when compared to whole life insurance because it only offers coverage for a specific number of years until the expiration of the policy. After the policy expires, there will be a need to purchase a new one; however, the new insurance policy could potentially be more expensive than the original one. Whole life insurance, on the other hand provides coverage for one’s entire life. Therefore, parents are advised to purchase whole life insurance for their children because doing so is likely to save a substantial amount of money over a long-term period.

Due to the fact that minors are more insurable and enjoy lower premiums than those to be paid by adults, the purchase of whole life insurance at an early age grants them a greater degree of protection and will go on to save them a great deal of money. No parent who purchases whole life insurance will ever have to worry about the expiration of the coverage at the end of the term. Whole life insurance also benefits children because it comes with a savings component which will also serve to save much money. This savings component can be put to use for any important purpose in the child’s life.

 

Endowment Policies

Minors in Singapore may also benefit from endowment policies. Endowment policies pay in much the same way as does life insurance; they pay a lump sum to the holder of the endowment policy when it matures. The primary purpose of an endowment policy is to encourage savings which can be used for any of various important purposes in the minor’s life. However, in most cases, most parents in Singapore will use endowment policies to finance the education of their children because the cost of education, in particular tertiary education, in Singapore is relatively expensive. Endowment policies allow paying for a student’s desired university to be made much more possible.

Insurance for Minors in Singapore FAQs

How do private integrated shield plans protect minors in Singapore?2020-07-03T14:31:52+08:00

Every citizen and permanent resident of Singapore is protected by the Singaporean government’s health insurance plan known as MediShield Life. This is also true of those who are underage. However, many parents in Singapore choose to provide further protection for their children by purchasing a private integrated shield plan for them because there are many advantages which apply to a private integrated shield plan but not to MediShield Life. Private integrated shield plans allow their beneficiaries to be treated in higher-quality wards if hospitalization is necessary. They also provide much of the financial coverage required for medical treatments which are provided by a hospital. All premiums for private integrated shield plans in Singapore are to be purchased through the use of one’s Medisave; any additional related expenses are to be purchased through the use of cash.

What factors should be considered by people who intend to purchase health insurance for their children in Singapore?2020-07-03T14:30:17+08:00

Every child’s specific life situation and health condition is different. Therefore, all parents need to consider different factors when selecting a suitable health insurance policy for their children. Nevertheless, there are also certain factors which the vast majority of parents who purchase health insurance for their children must take into consideration. These factors include inpatient and outpatient treatment, parental accommodation for instances in which the child must be hospitalized, vaccination coverage. If the parents plan to have another child, health insurance plans can and should be tailored to fit the additional child as well.

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