Written by Puja Chandra Nanda
Covid-19 has brought on financial uncertainty to all. While on the macro level, countries have been hit by recession and economic downturn; on an individual level, people are experiencing lesser job options, lower incomes and dwindling savings as healthcare takes a toll. In such a scenario, parents have the onerous task of balancing the present responsibilities and planning for future requirements.
In a 3 part series, we uncover some of the recent findings of surveys/ researches done, concerns of the parents and financial tools that parents can make use of.
Part 1: Insure Yourself for a Happier Future for You & Your Child!
NTUC Income (Income), recently released findings of a commissioned research that explored the link between parents’ financial preparedness and the impact on their child’s happiness.
Key findings revealed:
- 75% of parents in Singapore are concerned about not having enough money to provide for things that make their children happy
- 82% of parents agree their child’s happiness is integral to their own happiness
- 90% of children were worried that their lifestyle and happiness could be disrupted if their parents were financially unprepared for life’s unexpected events
The research pointed out how holidays and travel, social activities, leisure and entertainment activities positively impact a child’s happiness and in turn the family’s well-being. However, these activities are deemed non-essential and are the first heads of expenditure to be cut-down in case a parent unfortunately loses a job, suffers from a major disability or illness or dies.
This is why it is important to have a financial safety net to protect against unexpected events that could disrupt the family’s lifestyle and happiness. This safety net could be as simple as opting for one of the many Life Insurance policies available in the market.
One could opt for Income’s Life insurance plans, such as:
- iTerm, a term life insurance policy that provides affordable coverage and guaranteed renewal of your policy, with coverage up to a maximum age of 84 years (last birthday). You can also reduce out-of-pocket expenses with the optional Hospital CashAid rider in the event of hospitalization.
- Star Assure, a whole life insurance plan that not only keeps your family protected but also helps you grow your money at the same time. Besides the basic protection against death, total and permanent disability (TPD before age 70) and critical illness, you can add the Advanced Assure Accelerator rider to provide coverage against new, as-yet-undiscovered diseases (like the recently discovered COVID-19). In addition, the plan is useful in case you are retrenched and unable to find employment for three months in a row, you continue to enjoy the same insurance coverage without having to pay premiums on your basic policy for up to 6 months.