Child Health Insurance: Affordability Should Not Be the Only Concern

Healthcare costs for everyone across all age groups are increasing exponentially. This means that if you want to meet the healthcare costs for your child when he or she gets sick or contracts a disease effectively, then you should have child health insurance.

A child health insurance plan covers children against all major medical expenses, including ambulance charges, post-hospitalization charges, pre-hospitalization charges, and in-patient expenses. In India, health insurance plans for children can be covered under family floater health insurance plans or individual health insurance plans.

In both of those cases, the insured is protected against several healthcare expenses. One can also get several benefits like tax benefits under Section 80D of the Income Tax Act, 1961. It is also quite easy to get additional discounts and add-in covers in children’s health insurance policies.

Requirement for Health Insurance Plans for Children

When it comes to health insurance plans and investment and tax planning, then children are often considered to be the last group of people that we think will need that kind of protection. However, this should not be the case.

According to several studies, children have weaker immune systems that are not fully developed. This limits the ability of children to fight against several diseases. Further, young children have slower reflexes than adults. This makes children more prone to accidents than adults.

You might also be surprised to learn that children are more exposed to illnesses than adults. Children also often have unhealthy eating patterns. Because of all these reasons, you wouldn’t want to be caught surprising when your child is sick. This is why you should invest in a health insurance plan for children.

The Pros of Purchasing a Health Insurance Policy for Children

There are several benefits that one can get if he or she invests in a health insurance policy for his or her child. Some of these benefits are:

• Lower Premium: Children can be covered along with their parents at a very low cost.
• Comprehensive Coverage: In most cases, there is no restriction in the coverage features for children. This allows children to have more comprehensive coverage.
• Additional Perks: Children often get additional benefits like a consultation with experts, information on nutrition, and information on diet.
• No Claim Bonus: Some health insurance providers also offer the benefit of a No Claim Bonus to their customers. This means that there is a bonus that would increase the sum insured amount to a greater coverage amount. It can also mean that concession is given to the customer on the premium amount if no claim has been made during the entire policy period.
• Family Floater Coverage: In a family floater health insurance policy, children can be covered with either of their parents. This usually means that coverage is provided to the policyholder, spouse, and up to a maximum of four children. However, it should be noted that this number of members under a health insurance policy can vary from one insurer to another and from one plan to another.

Factors to Consider Before Purchasing a Health Insurance Policy for Children

Till now, we have talked about why buying a health insurance policy for children is important and the benefits of the policy. This is why you must be already in the process of purchasing one such policy for your child. However, before making the final purchase, there are some factors that you should consider. Some of these factors are:

• The Coverage Features: Before purchasing a health insurance policy, it is vital for you to check the coverage features of the plan. You must make sure that the coverage of your health insurance policy is adequate so that it proves to be useful during your time of need. Ensure that benefits like OPD treatment, in-patient hospitalization charges, post-hospitalization charges, and pre-hospitalization expense benefits are provided.
• Additional Coverage: There are several additional benefits that are provided to policyholders when they purchase a health insurance policy. These additional benefits can be used to enhance the coverage of health insurance. You can opt for additional benefits like a consultation with experts, no co-payment clause, and no limit on room rent capping.
• Network Hospitals: Network hospitals are defined as the hospitals that insurance companies have tie-ups with and where policyholders can get cashless treatments. It is recommended that you should have several network hospitals near your location. This will ensure that you can quickly get the treatment that you require during your time of need.
• Critical Illness Cover: Many health insurance plans for children do not provide critical illness cover for children. And even when this cover is provided, then it is only provided for some specific illness. You should make sure that you get a health insurance policy that offers cover for the maximum number of critical illnesses.
• Sum Insured Options: Choosing the right sum insured amount for a health insurance policy for your children also plays a very important role. You should make sure that the sum insured amount is sufficient and the premium amount related to it should also fall within your budget.

Beyond all this, you should also check for the following features:

• The policy should provide cover for children between the ages of 5 years and above
• Children under the age of 5 years should also get cover under the 91st-day policy feature if both the parents are covered in the policy
• The policy should offer maximum renewal ceasing age. There should ideally be a lifetime renewability policy
• The policy should provide the highest amount of coverage for the child. This should be in terms of both the co-payment and treatment
• Health insurance should also provide cover for pre-existing illnesses

You can only be sure about these features and benefits when you go through the policy documents thoroughly before purchasing the health insurance policy. This is why you must go through everything mentioned in the terms, conditions, and benefits of the policy before making any final purchase.