The ultimate insurance checklist for new parents in Singapore

Becoming a parent is a life-changing milestone – emotionally, financially, and practically.

For one, your priorities often shift from just personal fulfilment to ensuring your child’s wellbeing for both the present and the future.

This article presents a comprehensive insurance checklist for new parents in Singapore, which helps to protect your family, while balancing affordability and long-term planning.

As a guide, let us use the scenario of two parents named Alex and Mei, both 30, who are welcoming their first child, Liam, to the world.

What insurance should Alex and Mei buy for their family?

1. Life Insurance: to protect the family’s future

Why it matters: Life insurance ensures your family can maintain their standard of living if the worst happens. For new parents, the stakes are higher: you are not only protecting yourself, but also your child’s future.

Alex’s Plan: Term life insurance with coverage of 12x his annual income (~S$864,000).

Scenario: If Alex passes away unexpectedly, Mei can:

• Pay off the mortgage (~S$700,000 remaining).
• Cover daily living expenses and childcare.
• Fund Liam’s early education.

Insight: Without sufficient life insurance, a sudden loss of income could force the family to sell assets or deplete savings, putting Liam’s education and wellbeing at risk. Starting early also locks in lower premiums while Alex is healthy.

2. Hospitalisation and Integrated Shield Plans (IPs)

Why it matters: While MediShield Life covers basic hospitalisation in public hospitals, it does not cover higher-class wards or private hospitals fully. An IP ensures choice, comfort, and reduced financial stress during medical events.

Mei’s Plan: B1 ward IP complementing MediShield Life.

Scenario: Mei is admitted for appendicitis. Total bill: S$12,000.

• MediShield Life pays S$4,500.
• IP pays S$6,000 after co-payment.
• Out-of-pocket: S$1,500.

Insight: Hospitalisation coverage allows families to focus on recovery rather than worrying about large bills. For new parents, having access to private or higher-class wards can also mean shorter wait times – crucial when balancing childcare.

3. Critical Illness Insurance for parents

Why it matters: CI insurance protects against serious illnesses that could disrupt income and family stability. Hospitalisation insurance alone does not replace lost income or cover non-medical costs.

Alex’s Plan: S$200,000 CI coverage.

Scenario: Alex is diagnosed with early-stage cancer. The CI payout covers:

• Unreimbursed treatment costs.
• Household help and childcare while he recovers.
• Temporary income replacement for Mei if she reduces work hours to care for him.

Insight: CI coverage is a financial shock absorber, allowing parents to focus on health and family without jeopardising long-term goals.

4. Child Protection Plans

Why it matters: Children can face unexpected medical events too, from accidents to serious illnesses. A child-specific insurance plan ensures coverage without financial strain on parents.

Liam’s Plan: Child protection plan with:

• Hospitalisation coverage.
• Critical illness coverage.
• Education savings component.

Scenario: Liam is hospitalised for pneumonia. The plan covers the bulk of costs, so Alex and Mei can continue normal routines without dipping into savings.

Insight: Early coverage secures a child’s protection at lower premiums and guarantees acceptance before health issues arise.

5. Disability Income Insurance

Why it matters: Your ability to earn is often your biggest asset. Disability income insurance protects against loss of income due to illness or accident.

Alex’s Plan: 60% of monthly income until retirement or recovery.

Scenario: Alex suffers a minor accident and is unable to work for three months. The policy pays S$3,600/month, covering household expenses and childcare.

Insight: This policy preserves financial stability and prevents the family from relying on savings or loans during recovery – especially critical when children are young.

6. Maternity and Pre/Postnatal Coverage

Why it matters: Pregnancy and childbirth can sometimes involve unexpected complications. While MediShield Life covers some hospitalisation costs, private ward or procedure costs can be high.

Mei’s Plan: Integrated Shield Plan and Maternity Coverage.

Scenario: If an emergency C-section had been necessary, the total cost would have been around S$8,000 for a B1 ward. With IP and MediShield Life, out-of-pocket could be reduced to S$1,500.

Insight: Maternity coverage ensures access to preferred wards and care, reduces financial stress, and allows parents to focus on recovery and newborn care.

7. Education Savings Plans

Why it matters: Planning early for education costs ensures your child’s future isn’t derailed by inflation or unexpected events. Insurance-linked education plans also provide built-in protection.

Alex and Mei’s Plan: S$500/month into a child education plan.

Scenario: By Liam’s 18th birthday, this could grow to over S$120,000 (assuming 5% annual growth), while offering CI and life coverage within the plan.

Insight: Combining savings with protection ensures the child’s future is safeguarded even if a parent faces a critical illness or death.

8. Home Insurance

Why it matters: Your home is often your family’s largest asset. Damage or accidents can be financially devastating if uninsured.

Scenario: A burst water pipe causes S$15,000 in damage. Insurance covers repairs, preventing savings disruption.

Insight: Protecting your home indirectly protects your child’s living environment, ensuring stability.

9. Travel Insurance

Why it matters: Families often travel for holidays, work, or visiting relatives. Travel insurance covers medical emergencies and trip disruptions.

Scenario: Mei twists her ankle while sightseeing in Japan. Medical bills abroad are covered by travel insurance, preventing unexpected financial strain.

Insight: Young families face higher risk traveling with children. Travel insurance provides peace of mind and financial security.

10. Regular Review and Updates

Why it matters: Life changes fast after having a child. Coverage that worked at birth may be insufficient as children grow or parental income changes.

Alex and Mei’s Plan: Annual insurance review.

Scenario: When Liam starts school, child CI coverage is increased, term life policies are adjusted, and riders are added for parents over 40.

Insight: Periodic reviews ensure protection evolves with family needs, keeping coverage relevant and adequate.

Final Takeaways

For new parents in Singapore, insurance is essential. Using Alex, Mei, and Liam’s scenario as a guide, the priorities are:

• Life and critical illness coverage for parents.
• Hospitalisation coverage via MediShield Life + IP + Maternity insurance.
• Child-specific protection and education planning.
• Disability income to safeguard earnings.
• Home and travel insurance for broader family safety.
• Regular reviews to adjust coverage over time.

Starting early maximises affordability, ensures comprehensive protection, and lets parents focus on what matters most: raising their child with security and peace of mind.