Choose a suitable health insurance policy to cover your child’s needs and manage rising medical costs

Getting adequate and comprehensive health insurance for your child is your best bet to hedge against increasing medical costs, according to Ms Wendy Soong, an executive financial consultant with NTUC Income. She suggests considering the following points before shopping for a policy.

Tips to choose a health insurance policy for your child

Assess your current financial and medical situation

Medisave funds can be used to pay the annual premiums of basic health insurance or the government-approved Integrated Shield Plans only. All other insurance plans must be paid in cash.

How much you pay depends on your child’s age, the age of both parents, the sum assured, and the payment terms and period. How much insurance to buy depends on your desired lifestyle, expectations, affordability and objectives.

Review your family’s medical history. If there is a strong history of cancer, it is better to buy medical insurance for a child when he is as young as possible to lock in his insurability and serve as a back-up.

Choose your insurance plan and hospital ward class wisely

If you choose a plan that only allows your child to stay in a Class B ward but you upgrade him to a Class A ward, your bill will be subjected to proration and you’ll need to pay a higher deductible.

However, if you take a higher plan but downgrade hospital wards, some Integrated Shield Plans even offer you a cash benefit in return.

Lock in your insurability

If your child has no pre-existing health conditions, he will not face any insurability issues. But if he unexpectedly develops a condition during his growing years, that medical history will follow him for the rest of his life, making it difficult for him to get life insurance with critical illness coverage in future. If he needs surgery, hospitalisation bills can eat into your savings. So, it is essential to start with comprehensive insurance coverage while children are young and not leave it to chance.

It is best to buy medical insurance for children about a month after they are born, once the birth certificate is obtained. This locks in their insurability while they are healthy.

By: Stella Thng

See full story at www.healthxchange.com.sg