Posted 15 March 2025, by Sam Ng

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What’s the monthly cost of raising your kid(s)?

If you keep tabs on your family’s spending, you probably have that number at your fingertips. Otherwise, let’s take a few seconds to guesstimate.

Next, and I might sound harsh by asking you to do this, picture having to manage everything alone if your partner were no longer by your side.

Whether you’re a stay-at-home parent or the primary breadwinner, you would face even greater challenges in juggling career and parenting responsibilities if that were to happen.

In many cases, the biggest nightmare is the financial struggle following the loss of a source of income for the family.

The Monthly Budget for Single Parent

According to the estimate in Belanjawanku 2024/2025 booklet, a single parent raising one child in Klang Valley needs at least RM5120 per month to cover basic expenses.

The amount rises to RM6070 per month for a single parent with two children.

Estimated monthly budget for single parent with one child and two children living in Klang Valley (Source: Belanjawanku 2024/2025)

Of course, the amount can go up further if you aspire to provide a higher quality of life, better educational opportunities for your children, or a more comfortable living environment.

Additionally, planning for future expenses like college tuition, family vacations, and healthcare needs can significantly increase the financial requirements.

These are reasons why planning for income protection is so important for parents with young children.

Income Protection Needs

The most cost-efficient tool to provide income protection is life insurance.

Life insurance allows you to secure a significant payout for your family with very affordable monthly premiums.

Adequate life insurance coverage can provide the essential financial support when a parent passes away or becomes disabled, acting as a safety net to replace lost income and ensure the family’s stability.

Low Awareness among Malaysians

Yet the awareness among Malaysians is shockingly low, as highlighted in a report issued by Malaysian Reinsurance Berhad.

“The country’s population of 34 million people is largely uninsured against the risk of the sudden death of the family’s breadwinner. 60% of Malaysians have no life insurance and of those who have, 90% are underinsured. In fact, life insurance is mainly bought as a savings or investment product, not as a protection product.” [1]

Planning for Income Protection

Here’s what you can do to find out if you’re underinsured.

Firstly, you’ll need to assess your financial obligations, which include your family’s monthly expenses that are supported by you, all outstanding debts e.g. mortgage, car loan, personal loan or credit cards, as well as future financial needs such as your children’s education.

You can then compare the amount of your financial obligations with your current life insurance coverage to see if there is a shortfall.

Otherwise, speak to a professional who can help analyze your financial situation.

However, beware of any advice that prioritizes the investment aspect of life insurance over its core purpose – financial protection – as it misrepresents the true value of insurance.

In Conclusion

In the 2020 Census, 946,236 persons were recorded as widowed. While the report does not specify how many of them are also parents, this group represents 11.5% of total households in the country.

Given Malaysia’s underinsurance statistics, many families may be unprepared to cope with the financial impact of a sudden spousal loss.

Parenthood comes with its challenges, and single parenthood makes it even tougher. While cherishing every moment together, parents should also be prepared for life’s unexpected turns.

Thank you for reading!

[1] Malaysian Reinsurance Berhad’s Malaysian Insurance Highlights 2024.