facebookDid you buy term insurance (death, TPD, CI) for your newborn? Why do you think it is needed when your newborn has no dependents? - Seedly

Anonymous

18 Apr 2019

Insurance

Did you buy term insurance (death, TPD, CI) for your newborn? Why do you think it is needed when your newborn has no dependents?

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Hariz Arthur Maloy

21 Mar 2019

Independent Financial Advisor at Promiseland Independent

We've discussed this quite a few times already but here's my answer again. :)

You purchase insurance for your newborn not because anyone is depending on his income, but if he falls ill, a parent will need to stop work and hire a domestic worker to help take care of the family and other responsibilities.

You buy insurance to cover in the event of illness of the child as additional expenses and a potential loss of income for the family will be incurred.

Also, at a young age, a limited pay Whole Life plan for the child may make more sense financially. And if you get a term only, your child might not be able to get insured later in life if there are any complications or illness.

A WL plans locks his insurability at least.

I'd look at getting around 100 to 150k of CI coverage for life for a newborn. If you'd like a comparison or a deeper understanding of what other risks you may need to manage for a newborn, you can always drop me a message on FB.

All the best!

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