Should I get disability insurance for my first child?

Hi Anon, I may need you to clarify a few things here. When you mention Disability Insurance, there are a few types.

There is Total and Permanent Disability cover which pays a lumpsum should someone be defined as such. Usually in the form of inability to perform 3 activities of daily living, loss of use of limbs or eyes, or the inability to perform any occupation for more than 6 months.

Usually in such a scenario, the rest of the life of said person would change. You'd probably not die but live without the ability to earn an income or take care of yourself.

Another type is Own Occupation Disability. This is coverage for a working adult who now cannot perform the material duties of his job. The payout is a stream of income till 55 or 65. This is a form of income protection and not a lumpsum payout line the above.

Then lastly, is Long Term Care payout due to disability. Also tagged to the inability to perform 2 or 3 activities of daily living. This is meant as an extra payout to cover cost of long term care usually during retirement years, and can cover the costs of staying in a nursing home or hiring help.

Now, for a young child, I'm assuming not a working adult, you can only purchase TPD cover. This is tagged to either a term policy or a whole life policy.

For young children, while they do not earn an income currently, illness and disability may affect their ability to earn an income in the future and be permanently dependent to their parents. Thus, covering for TPD and even all stages of Critical Illness is very important. While the child doesn't suffer a loss of income, the parent does.

So you should definitely consider getting coverage for your child. TPD as a benefit is also extremely affordable.

At the foundation, the most important will be healthcare insurance. This is because of the limitations associated with MediShield Life in Singapore. I have shared some of these concerns here: https://www.blog.pzl.sg/is-medishield-life-enou...

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With medical inflation hitting 10% this year, healthcare insurance is definitely a priority. In fact, do not stop here. Add on a personal accident coverage in case of accidents and injuries. Additionally, the coverage extends to conditions like Hand, Food, and Mouth Disease, Dengue Fever.

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Once we complete the foundation, it is always valued to start a whole life insurance as a gift to your child. Ultimately, insurability is priceless (I'm a living example with no insurance coverage). You may consider basic life cover (pre-mature death, total & permanent disability), as well as coverage for major illnesses.

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At the same time, don't forget to set aside funds for your child's education too. In this world, it is either we earn interest today or pay interest later for child's education.

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The best way to evaluate on the adequacy of coverage is to have a comprehensive portfolio summary. I have highlighted the key reasons here: https://www.blog.pzl.sg/why-every-client-needs-...

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Through this process, we will be able to asess the situation accurately and determine if we are well-covered, over- or under-insured.

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