Hi Fellow Automated Millionaires,

Children's Welfare has always been the No. 1 priority in a family. I don't know about you but mine is :) Due to this priority, it may turn out to be some financial stress on the parents.

Recently, I heard from some of my friends that they are having problems finding funds for their children tertiary education, regardless local or overseas. In fact, overseas education costs the parents even more (for mine, it costs my parents about S$30,000 for a year in Australia - I didn't buy a lot of stuffs nor I go clubbing otherwise it might be higher ;) ). One of my friends had to go hunt around to look for the lowest interest rate loan and even with the lowest interest rate loan, her finance will be very very tight! Luckily, with the Universe's blessing, her son gotten a Scholarship! :)

I presumingly felt that this is quite a common issue with families nowadays and this issue can be resolved if parents have done some financial planning with their trusted Financial Adviser when the kid is born. Most of the Advisers will probably try to sell or the parents themselves wanted a whole life insurance for their new born baby :) Nothing particularly wrong with that, especially if the parents themselves wanted it :)Just that most families have limited money resources, hence prioritizing which is more important. In Singapore, there is a joke - "If you go into a Hospital, either way you die. Killed by the illness or by the bill!". So, more importantly, we should protect our wealth by not incurring too much bills on our hands.

Since children are known to have weaker immune system, hence the chances of hospitalization is higher. Therefore, a private shield is probably more important. At the same time, children are known to be more active, hence more prone to minor accidents. Therefore, getting the children into parents' personal accident plan is more important. Therefore, in my humble opinion, with a limited money resources, we should have a Private Shield and Personal Accident policies for our children first. And if your children's tertiary education is a priority, We could leverage on Endowment Policy to fund their education when they are 19 years old for girls or 21 years old for boys. Lastly, *if* we have excess, we could buy a Whole Life for our children.

Though it is much cheaper for us to purchase Whole Life when our children is younger, at the same time, the key still remains - Which is more important to our children with limited money resources. All are important - Whole Life, Private Shield, Personal Accidents and Endowment. It's just that with our limited money resources, there is limited things we can purchase :( Remember what my mentor said,"Never buy too much insurance, it will never make you rich!"

Yours Sincerely,
Max Tay - The Automated Millionaire