SINGAPORE - A new insurance policy that aims to break new ground by covering three generations of a family is being launched on Thursday (May 23).
The product will provide cover to the policy holder as well as his children and parents.
The initiative aims to tackle the growing financial burdens of what is known as the sandwich generation - those with kids and ageing parents to care for while juggling housing loans, rising childcare costs and tuition fees.
Insurer Great Eastern is behind the new policy, called the Great Family Care package.
A policy-holder can be insured against death, total permanent disability, terminal illnesses and critical illnesses for a sum assured between $50,000 and $3 million.
In addition, every child of the policy-holder - including those born in the future - is automatically given free coverage until 18 against various critical illnesses and juvenile conditions.
The lump sum payout - which is 25 per cent of the sum assured - is capped at $50,000 per child.
On top of that, the policy-holder can buy a rider for his or her aged parents without any medical underwriting as long as they are under 80 at the time the policy is bought.
The rider covers both the policyholder's parents until the age of 100 but is terminated once a payout has been received for either parent.
Major cancers are covered as well as severe dementia and Parkinson's disease.
The premiums are also dependent on factors such as the purchaser's age and the sum assured.
Mr Colin Chan, managing director of group marketing at Great Eastern, said the company had hoped to simplify the process for individuals who want to get their parents insured.
"Buying insurance for your child is nothing new. But buying for your parent is not so easy," he noted.
"We are trying to make it easy for people to get the necessary coverage that we believe would help them."
He added that in Singapore where life expectancy is higher, the need for the expanding sandwich generation to have the means to provide for their parents is greater.
Mr Nicholas Lee, a senior practitioner with a financial advisory firm, pointed out that although an individual might feel that he had done his part in getting his parents insured with the policy, common afflictions among the elderly such as heart attacks and strokes were not included on the list of illnesses covered.
By 2030, about one in four people in Singapore will be aged 65 and above.
The Great Family Care policy is available from today (May 23).
More information at www.greateasternlife.com/greatfamilycare.