Hi, any idea which type of insurance to buy for our kids? Is it better to buy education insurance or life insurance? I have no idea what to buy. Which one did you buy for your kid? I hope some of you can share some information rgdg this. Thanks a lot.
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crj
18 yrs ago
I think term life insurance is a good idea if you have a spouse/partner or children. It is all about providing for your family if you die.
It covers about 20-30 years.
Basically, you pay a fixed fee every year for 20 or 30 years (for example 2,000-5,000 USD depending on your coverage), and if you die, a fixed amount (for example 2-10 Million USD) is given to your benefactors.
Considering two well known professionals, under 40, with children, died suddenly in HK in the past 6 months, I am sure a lot more people are looking into this now.
We got ours when we had our baby.
My parents cancelled their term life insurance once I was out of the house and their mortgage was paid off.
Whole life is totally different, it lasts your whole life (sort of), but it costs a lot more than term and they try to sell it to you as a 'savings plan' where you can take loans against it and get a guaranteed return of about 3%... this is the scary one, it costs a lot and you can probably get better returns if you invest your money on your own. If an agent tries hard to sell you this, get a second agent opinion!
For us, the peace of mind was worth it.
But it really is a personal choice.
We love Charles Monat, one of the largest agents in Asia and got a Trans America policy from him.
Charles Monat
Associates Ltd.
St. George’s Building, Suite 106
2 Ice House Street
Hong Kong
Tel +852 2524-8176
Fax +852 2845-9149
infohk@monat.com
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i bought 3 different policies when my baby was born 8 months ago:
1) 1 education for in case we die, there will be a monthly payout to support his education
2) life policy - one of those that covers the many serious illnesses
3) a hospital policy - for when he is warded, he is covered to stay in a higher class ward.
i don't pay alot of premiums and the cover is not immense (definitely not 2-10 mil as mentioned by crj). but it's a peace of mind to know that at least there is some coverage if anything happens to us.
i am also looking into buying a endowment policy for him too.
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Touch wood, should anything happened to the payee/s, then the kid will not get paid till he/she is 18 years old. Meantime, the funds will be guarded by the public trustee. Can public trustee be trusted in 18 future years time to pay out the said sum?
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crj
18 yrs ago
I should add, we also have a full health insurance policy for baby from Allianz.
In our casw we were able to choose the trustee.
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I have a couple of insurance policies and a couple of managed funds for a period of 15-18 years. I just started my second managed fund to save for his education. I have a really really good financial advisor who looks around for the best investments for me and so far (9 years on) I have no regrets whatsoever. I've put my baby on the company's medical policy which is great. If the company lets you, this is a great scenario, because you'll get a much better deal with the group premium. If not, you can ask if you can pay the premium. It will still work out cheaper than paying a private doctors bill for a year!
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Thanks everyone. I will meet up with some insurance agents next week, will ask about the term insurance, as well as the education insurance. For health insurance, my company has a very good coverage for the whole family, so I don't think I'll need that. I'm looking to spend between HKD5000-8000 per month for 2 kids. Are these amount enough? Any input? Thanks...
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crj
18 yrs ago
your budget is not a problem at all.
You might want to translate into USD annual, as that is what the Term Life will be quoted in.
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crj, this term insurance is under my name, am I right?
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crj
18 yrs ago
we have two policies - one for me, one for hubby.
My policy says that if I die, my child/hubby get xx amount.
Hubby's policy says, if he dies, our child/I getr xx amount.
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