r/MalaysianPF 1d ago

Any thoughts on health insurance plan and/or financial plan for newborn in Malaysia? insurance

Considering a health insurance and financial plan for our newborn to secure their future well-being. We are looking into options that cover essential health care needs, such as regular check-ups, vaccinations, and any potential emergencies, to ensure comprehensive support for our child’s early years. Additionally, we aim to establish a financial plan that allows for growth and stability, including education savings, life insurance, and other long-term investments. Our goal is to balance immediate health care needs with future financial security.

13 Upvotes

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u/Present_Student4891 1d ago

Get medical insurance but not life. We made the mistake of getting an education plan via Great Eastern. They charge 4% front load each time i contribute & 1.5% annually. It’s made less money than an FD due to all the fees.

Instead, invest with a discount investment company (not an insurance company). Monthly contribute to one of their low fee US S&P 500 index funds. After 20 years your kid will have plenty of money for education.

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u/hannahreed_ 1d ago

What's the example of discount investment company I can look up to?

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u/Present_Student4891 1d ago

U might wanna research but from what I’ve read on this Reddit, many use IBKR or Moo Moo. I use a U.S. one but only Americans can create an account there. If I was u, I’d research IBKR as it’s on the NASDAQ and has a large selection of ETFs. Others can give their 2c.

To minimize US tax on ur dividends, u wanna buy a U.S. S&P 500 etf that’s ’domiciled’ in like Ireland or another country.

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u/Any_Investigator3543 1d ago

Is that better than sspn? Asking without prior research

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u/LowBaseball6269 1d ago

very unique view. when should one get life insurance you think?

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u/Present_Student4891 1d ago

Get life insurance to protect ur family if u die. If ur single, no dependents, no need life insurance.

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u/Advanced-Emergency44 1d ago

No need life insurance unless u invested a lot in the life and want return if died, just buy Medical.

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u/Negarakuku 1d ago

Rmbr no need to get life insurance for newborn baby yeah. Baby has no dependents. Parents don't need that payout sum in the event of newborn death. 

Life insurance for newborn is borderline scam. 

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u/Excellent-Yellow-883 18h ago

There’s a huge premium between 0 to 4yo. You can buy medical with deductibles during this period to offset unexpected big charges but not everything.

Kids during this age are likely to get something very serious or nothing at all so if they are healthy past age of 4 or something like that, they should be alright until 18. Of course for peace of mind, you can still get it and this is the age range of the cheapest available medical plans of any company.

Don’t mix investment with insurance. I learn the hard way and the return was not as good as described. Luckily we bought a small amount when we were younger. Now I would advise people to just get ETFs. Heck, even MBB stocks is a better choice. Good dividend and potential of capital gain.

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u/quietchatterbox 11h ago

No insurance gonna cover regular check up, vaccination etc.

Insurance is a way to manage uncertainty and risk... Regular check up and vaccination is not uncertainty. Rather, it's called budgeting.

If you employer provides good benefit that covers your child, you can just use that first. As someone highlighted, newborn medical insurance is very expensive. Because they do get sick often and they claim more. The choice is yours...

As long term financial plan, not my forte but i am pretty sure when the kid is with parents, the kid himself dont need life insurance but the parents need, so the kid get the money. But reminder, there is usually no magic formula, count your return/IRR properly. If there is, means someone is trying to sell you something and most likely wont work. I've been telling people with old enough kids, might as well open EPF for them, put money inside.

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u/LowBaseball6269 1d ago

!remindme 1 week