Insurance for a baby

Hi Mr Tan

I've read up several articles on the purchase of insurance policies for children. My child is only 2 months old. Based on what I have read so far, it seems like I have to purchase hospitalisation/medical plan and education plan for her.

I suppose hospitalisation plan is the same as NTUC living insurance policy? If not, which insurance agency offers the best hospitalisation plan? How different is Medishield from NTUC living insurance?

Reply. The Living policy is suitable for an adult. It is costly and unnecessary for a baby. You should take the Medishield plan from CPF. It is adequate for the baby.

Based on your experience, which insurance agency offers the best investment linked plan and what type of unit trusts should we invest in?

Reply: You should buy the Flexi-Link plan from NTUC Income and invest in the Combined Fund. The Flexi-Link requires a starting single premium of at least $5,000. You can make additional investments through top-ups of a certain minimum amount. The charges are the lowest amongst all ILP plans in the market.