
It’s a brand new year now! Thinking of gifiting something for your child? Ditch the idea of spending a few hundred bucks per month on toys today and start planning your child’s insurance portfolio today! That will be the best gift ever, and they will thank you in the future for planning ahead for them!
Interestguru.sg reviews the Best child insurance for your kids and tells you why they will need them.
Why do your child need an insurance policy?
My child is still so young and healthy. Why do I need to get insurance for them?
This is a very common question our advisors get from clients. Very often, clients do not see the need to get insurance coverage for their child as they are young and healthy.
Insurance are often seen as a spending, instead of a protection in this context nowadays but this idea is totally incorrect.
Insurance is the embodiment of preparedness, offering a safety net when life takes an unexpected turn.
With the inflation rates getting higher nowadays (about 2.1% in Oct 2024), placing your funds or saving up for your children in their children savings account (0.3% p.a.) also means that you are losing money to inflation every single day. It is important to prepare your future generations with enough funds for the fundamentals in life, and we are not only talking about protection coverage, we are also talking about wealth accumulation options for education or housing purposes for your future generation which can fight against inflation.
What are the plans to consider for my child?
1. Integrated Shield Plans
The most affordable plan, yet perhaps the most crucial one for ensuring your child’s coverage, is the Integrated Shield Plan, also known as a hospital shield plan. This plan is vital for protecting against hospitalization costs, especially in Singapore, where medical expenses are among the highest.
Premiums for Integrated Shield Plans can be paid via Medisave, while the rider is payable in cash. Newborns can be enrolled in an Integrated Shield Plan as early as 15 days old, making it important to secure their coverage promptly. Early enrollment allows the plan to be applied with a clean bill of health, ensuring comprehensive coverage during any hospital stay should an illness occur.
Read more: How an Integrated Shield Plan works
Read more: 4 Best Integrated Shield plan for 2025
Which plan type should I go for?
There are primarily two types of Integrated Shield Plans: those that cover restructured (government) hospitals and below, and those that cover private hospitals and below.
Interestguru.sg recommends opting for the plan that includes private hospitals, and here are some reasons why:
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Shorter waiting times at private hospitals compared to government hospitals.
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Availability of pediatric specialists at private hospitals, which might not always be the case at some government hospitals.
Act now: Compare Integrated Shield Plans across different insurers
2. Whole Life Plans
“Buy term and invest the rest” is a common phrase you might have heard, so why consider a whole life plan for your child instead of a term plan?
Firstly, a whole life plan can be purchased for your child as a meaningful gift to welcome them into the world. You only need a basic whole life plan with essential coverage to protect them against illnesses before they become independent adults.
Often, if your child remains healthy, the plan you bought at birth might be considered outdated by the time they start working, and they may seek new coverage plans on their own. At that point, the old plan can be terminated, and the surrender value can be gifted to them.
Read more: 4 Best Whole Life Plans in Singapore (2025)
Read more: How a Whole Life Plan works
Act now: Compare Whole Life Plans across different insurers
3. Wealth Accumulation Plans
After completing steps 1 and 2, if you have extra funds, consider exploring wealth accumulation plans to kickstart your children’s savings.
Wealth accumulation plans come in various forms, and here are some options to consider:
Endowment Savings Plans
Endowment plans are excellent for long-term and disciplined wealth accumulation. Opt for endowment plans with a limited pay tenure, such as paying premiums for 10 years and then waiting another 10 years for maturity. These plans typically offer the best yields compared to endowment plans with cashback features, where flexibility is often traded for lower yields.
Read more: 4 Best Endowment Plans for 2025 in Singapore
Read more: Compare and get quote endowment plans in Singapore
Investment Linked Policies (ILPs)
There’s a common myth online that ILPs are poor wealth accumulation instruments due to the nature of their high policy charges. While this may have been true for older plans, it’s no longer the case with newer ILPs on the market.
ILPs are great for long-term wealth accumulation, especially when combined with dollar-cost averaging. They can offer an average yield of 8-10% (non-guaranteed) over a long term (15-20 years or more), making them an excellent wealth accumulation option for your child. Start today, and they will thank you later for investing their first pot of gold. You can always terminate your plan thereafter when they become an adult, for education needs, or the down payment for their first house, the decision is yours!
ILPs also allow you to invest in restricted funds available only to accredited investors (AI). Fundsmith is one of the most popular AI funds currently available through ILPs.

According to the Fundsmith fund fact sheet, this fund has delivered exceptional results since its inception in 2010. Investing in this fund can be an excellent way to jumpstart your child’s wealth accumulation, with contributions starting as low as $200 per month. Begin now to take advantage of the investment yields! You can read more about Fundsmith through the link provided below.
What’s next?
Flooded with options to start something today for your child with limited budget? Drop us your contact details via the form below or Whatsapp us today! Our friendly advisor will advise you the best plan for your needs with no obligations!
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