Insurance for Baby

Thoughts on insurance for Baby? Is umbilical cord storage considered an insurance?

Hi Mojo12,


First of all, you may say umbilical cord is a form of insurance but its application is rather limited and is believe to come with a certain risk. Please read the following for details.


"The blood within the umbilical cord, known as cord blood, is a rich and readily available source of primitive, undifferentiated stem cells (of type CD34-positive and CD38-negative). These cord blood cells can be used for bone marrow transplant.

Some parents choose to have this blood diverted from the baby's umbilical blood transfer through early cord clamping and cutting, to freeze for long-term storage at a cord blood bank should the child ever require the cord blood stem cells (for example, to replace bone marrow destroyed when treating leukemia). This practice is controversial, with critics asserting that early cord blood withdrawal at the time of birth actually increases the likelihood of childhood disease, due to the high volume of blood taken (an average of 108ml) in relation to the baby's total supply (typically 300ml).The Royal College of Obstetricians and Gynaecologists stated in 2006 that "there is still insufficient evidence to recommend directed commercial cord blood collection and stem-cell storage in low-risk families"."


Normally, insurance is referred to the financial coverage against the potential medical bills that caused by unexpected events or accidents in life. The concept and importance of insurance has been accepted by many in HK as the price for treatment is increasing year on year, and often places a substantial financial burden on the patient, also the potential income loss. Although the public hospitals offer a relatively cheap price for locals, however they have been criticized for the poor quality of service as well as the long waiting hour (usually 5-6 hours or more for out patient depends on the emergency).

As a result, many educated individuals or parents would rather divert the financial risk to insurance companies especially when it comes to babies. Kids under the age of three are believed to be vulnerable to diseases due to premature immune system as well as accident due to curiosity. Although insurance can not prevent the unexpected event from happening but it ensures your standard of living remained. There are two types of insurance, term or endowment, available depends on your financial background and status.


Hope this helps. If you have any further questions, please feel free to PM me.


Calvin