The joys of becoming parents for the first time cannot be put into words. It’s an altogether a different feeling. But with the excitement comes a whole new set of responsibilities – you are going to have another being to take care of. One of the ways to be financially prepared for the birth of a new child is to have a maternity insurance cover.
Maternity cover is an essential insurance product to have, given that the healthcare costsare shooting up fast. It protects you from the rising costs associated with childbirth by taking care of all your pregnancy-related expenses.
Maternity coverage is offered as an add-on to health insurance policies.
What does maternity insurance cover?
‘Hospitalization expenses for the delivery of the baby (normal or caesarean)
‘Pre hospitalization expenses are covered for up to a month and post hospitalization expenses are covered for up to two months.
‘Healthcare costs of the new-born baby are covered for a specific period of time. In the event your child requires medical attention, the insurance company will pay for treatment costs.
‘Ambulance charges to take the expecting mother to the hospital.
What is not covered?
‘Visit to the doctor for regular check-ups.
‘Termination of pregnancy within first 12 weeks of conception.
‘Maximum age of policyholder availing benefit of maternity insurance is generally capped at 45 years.
‘Money spent on vitamins and tonics (unless mentioned in the policy).
When you buy a maternity plan, the coverage is not going to be extended to you right away. Maternity benefits can usually be availed for a period of two to four years from the date of the policy purchase. The waiting period in case of group health insurance plans is usually around nine months. Make sure to enquire of your insurer the waiting period involved in case of group covers extended by your organization.
It is advisable to consider buying health insurance policies with maternity coverage an add-on as soon as one gets married. This way you ensure that the waiting period gets over by the time you require the pay-out. You will receive the policy benefits when you are actually in need of financial assistance.
Premiums charged for medical insurance plans that have maternity coverage as add-ons are a little bit on the expensive side. Insurance companies consider maternity cover a high-risk product. The reason for this is because the claim ratio generally goes up to 100%.
If you plan on including maternity cover to your current health plan, do it so early. Your age also plays a role in determining how much you pay in premiums. The longer you wait, the more you pay in premium costs