4 Insurance Tips For New Parents

First off, if you’re intrigued by this topic, it’s very likely you have a new addition to your family. Hence, Congratulations!

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Having a newborn in the family is one of the biggest joys you can experience in life. It means your life will never be the same again and you’ll be embarking on a selfless transition to provide the best for your family. However, this overwhelming joy may sometimes be accompanied by an unsettling aftertaste. One minute you’ll be overjoyed by your adorable baby but the next you might be pondering how you can set a fulfilling life that your little one deserves.

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It is up to you to make that decision to provide for your family, should the day come when you might not be around for your family. We understand your concern so here’s some useful tips to help you get a headstart with the right insurance plan.

1. Kids are expensive to raise. Go with insurance plans that offer savings benefits

When we say kids are expensive to raise, we aren’t exaggerating. In Malaysia, the cost to raise a kid ranges between RM400k - RM1.3m, covering from the day of birth all the way to funding for higher education. Do bear in mind that this amount may hike drastically depending on external factors such as inflation, where you live and the rise of child-rearing expenses.

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Hence, it is important that you apply for an insurance plan that has savings benefits as it provides a financial cushion for your child and helps avoid stifling levels of debt that many young adults face today.

2. Insurance can actually be affordable

It is common for parents to be ambivalent when it comes to getting an insurance plan for their kids due to the price tag. Contrary to that belief, insurance can actually be really affordable. Because your baby is young and healthy, you can lock in a good rate that may even be lower than the price of a normal meal every day.

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Take for example the FWD WealthLink insurance plan - it provides life insurance coverage with investment benefits that can start as young as 14 days old. Coverage increases by 10% every 5 years, up to 150% of your original coverage. There are also other budget-friendly plans for you to choose from. Browse our popular plans here.

3. Don’t nominate your new baby as your beneficiary

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It’s true that you want to protect your baby financially and you want the best insurance benefits for your baby. However, it can be a big mistake to designate a minor as your beneficiary.

It’s better to set up a trust or designate an adult, such as your spouse or close relative to oversee the distribution of money to the minor. Not only does this ensure better management of funds, but it’ll minimise any legal hassles that your family may face when it comes to claiming the insurance benefits.

4. You don’t need to do it alone. Speak to a professional

Today’s insurance plans have evolved to have very flexible benefits, that it may sometimes be complicated. So, one of the things that might hold you back is not knowing how or where to start. Fret not, simply speak to a professional agent that can be as reachable as a simple phone call. Agents can help you find the best insurance coverage that fits your needs and your budget.

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At FWD Insurance, we make things extra convenient for you. Simply drop your contact with us for FWD Wealthlink and we’ll designate one of our Wealth Advisors to help you start. Try it today!

With these useful tips, we hope they’ll give you a confidence boost in choosing the right insurance plan for your little one. 

Even though your child is still a baby, the best time is no other than now to determine the best protection to secure your child’s tomorrow. Besides, it gives you better peace of mind so you can stay focused on loving and creating memories with your newborn.