Kids insurance -education plans

With rising costs and increased learning needs, financing our children's education is no longer a simple walk in the park. Discuss with other parents about how they are managing their finances to cope with their expenses.

Kids insurance -education plans

Postby pupilview » Thu Oct 14, 2010 3:24 pm

Any good recommendation for kids insurance - education plans??

pupilview
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Postby alternateshift » Fri Oct 29, 2010 2:20 pm

lesson learnt from friends .. get medical insurance for your kids once they are born .. their kid was admitted to hospital and bills racked up close to $1k per day!

set aside an endownment fund for their education

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Postby daddy2007 » Fri Oct 29, 2010 9:24 pm

I fully agreed that private hospitalisation plan is a must. I bought the highest private plan for my daughter when she turned 1. Don't know is it lucky or unlucky, she has been hospitalised twice when she was 2+. So far didn't pay a cent at all for the hospital bill (both occassion staying at Private A ward)

It is good that one buy the highest H&S plan (those entitled Private Hospital) for a yound child since the difference between the next plan (for age below 18) is not alot. It is easier to downgrade to a lower plan then to upgrade to a higher plan. Once the child has any medical history, there will be bound to have exclusion clause

As for endowment, I have my reservation. The returns is quite small (~2-3% p.a) over 18 years. The winner is the agent & the insurer

PS: I am not vested as I am not a financial planner

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Postby mrswongtuition » Sun Nov 07, 2010 9:47 am

daddy2007 wrote:I fully agreed that private hospitalisation plan is a must. I bought the highest private plan for my daughter when she turned 1. Don't know is it lucky or unlucky, she has been hospitalised twice when she was 2+. So far didn't pay a cent at all for the hospital bill (both occassion staying at Private A ward)


Agree.
And we all hope that we will never need to do any claims!

But I can sleep soundly knowing that we are well-covered should anything happen.

I know of people who think that insurance is just a scam and they refuse to buy any for themselves or their family. Now, they are bearing the consequences of their actions.

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Postby daddy2007 » Mon Nov 08, 2010 12:44 am

yeah.... transfer the risk of loss of earning ability to other people during our financial active years

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Postby kingster » Thu Nov 18, 2010 12:09 pm

nowadays, people are buying such insurance already, the only problem now is, they do not really know what they buy or they are attended by the not so nice agents who only care about the comission they gonna get...

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Postby wywy2 » Fri Nov 19, 2010 12:02 pm

daddy2007 wrote:I fully agreed that private hospitalisation plan is a must. I bought the highest private plan for my daughter when she turned 1. Don't know is it lucky or unlucky, she has been hospitalised twice when she was 2+. So far didn't pay a cent at all for the hospital bill (both occassion staying at Private A ward)

It is good that one buy the highest H&S plan (those entitled Private Hospital) for a yound child since the difference between the next plan (for age below 18) is not alot. It is easier to downgrade to a lower plan then to upgrade to a higher plan. Once the child has any medical history, there will be bound to have exclusion clause

As for endowment, I have my reservation. The returns is quite small (~2-3% p.a) over 18 years. The winner is the agent & the insurer

PS: I am not vested as I am not a financial planner


Yes I agree too, get the highest plan and it saves you a lot of heartache, just wondering though when should I downgrade, oldest kid already in Primary School. What do you think? Cos quite heart pain to cough out so much for my 2 kids. And actually one of them did not even need it so far.

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Postby daddy2007 » Sat Nov 20, 2010 2:36 am

wywy2 wrote:Yes I agree too, get the highest plan and it saves you a lot of heartache, just wondering though when should I downgrade, oldest kid already in Primary School. What do you think? Cos quite heart pain to cough out so much for my 2 kids. And actually one of them did not even need it so far.


The H&S premium is paid using MediSave so should be quite ok right? I presume you are talking about the Rider which we have to pay in cash? About $100+ per annual for the Rider. So I just save $10 each month to pay for the Rider

Personally I will only downgrade when I am 60+ when the premium is too high

As for the kid, I will continue to pay for her until she turns 21 where I will ask her to pay for herself. $100+ p.a. to buy a piece of mind which IMHO I think is worth it. Of course the premium might grow over time.

Insurance is about transferring of financial risk and to use it as leverage to protect one's wealth. So I tell myself that it is better to play safe to pay a sunk cost as one will not know when one will need it. This is just my personal view.

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Postby wywy2 » Tue Nov 23, 2010 11:08 am

daddy2007 wrote:
The H&S premium is paid using MediSave so should be quite ok right? I presume you are talking about the Rider which we have to pay in cash? About $100+ per annual for the Rider. So I just save $10 each month to pay for the Rider

Personally I will only downgrade when I am 60+ when the premium is too high

As for the kid, I will continue to pay for her until she turns 21 where I will ask her to pay for herself. $100+ p.a. to buy a piece of mind which IMHO I think is worth it. Of course the premium might grow over time.

Insurance is about transferring of financial risk and to use it as leverage to protect one's wealth. So I tell myself that it is better to play safe to pay a sunk cost as one will not know when one will need it. This is just my personal view.


Hi daddy2007,

Thanks for your input on this. I guess I was asking as I just wanted to be sure. For money matters, I need to learn more as I feel I can be a bit blur about such things. Tks!!

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Postby alternateshift » Wed Nov 24, 2010 12:09 pm

true .. just feel as parents we should at least try to provide them some simple coverage till they are old enough to pay and decide on what they want

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