Importance of Maternity Insurance before Starting a Family

Saikat (30-year-old) and Aparna (26-year-old) live in Kolkata and belong to a low-income group family. The couple welcomed their firstborn in September this year at an eminent private hospital in Kolkata. But the couple was utterly distraught when the hospital handed the family a bill of Rs. 3 lakh for the cost of surgery and maternity care. The couple had already spent a hefty amount in OPD to combat her pregnancy complications. Unfortunately, Saikat and Aparna are not alone who experienced this kind of situation; many more couples have faced the same situation because of the high costs of healthcare support required during pregnancy. Here comes maternity insurance that used to take care of everything and give financial relief to the young couple.

Comprehensive maternity insurance bears all healthcare expenses related to childbirth, including complex deliveries and cesarean sections incurred during hospitalization and even post-birth complications. Thus, a pregnancy insurance policy from a popular health insurer will lessen the financial burden from the new parents and inspire them to enjoy worry-free parenthood.

Most Indian insurers are not offering maternity health insurance as a standalone insurance product. But they are offering this with the basic family insurance, especially under family floater policies. Standalone maternity covers are not currently available in the market because of the risk of anti-selection. So, if a newly married couple is planning to start their family, then they must check whether their existing health insurance policy covers pregnancy insurance plans or not. They should choose insurance that covers pregnancy. ICICI Lombard health insurance offers its policyholders “maternity cover” that reimburses all medical expenditures during delivery (including a cesarean section). The policy also covers all the costs of prenatal and postnatal expenses. Star health insurance also covers delivery expenses during hospitalization, pre-post natal care, and many more.

These days, many private hospitals are offering the best maternity care and treatment across the country because of the astonishing growth of healthcare over the past few years. But rearing a child is still an expensive endeavor. Here enters a well-constructed maternity insurance plan that will help you get rid of financial issues during the delivery and encourage you to enjoy this new phase of life.

So, why should everybody opt for pregnancy insurance in India before starting a family? Let’s unearth the reasons.

Acts as a financial backbone with its intriguing features

A maternity insurance policy covers all the expenses for both delivery options (normal and cesarean delivery). So, irrespective of what type of delivery is required for you, a comprehensive maternity insurance policy helps you overcome all financial stresses.

Many maternity policies also cover both pre-and post-hospitalization expenses. These plans are taken care of up to 30 days before hospitalization and 60 days post-hospitalization. These policies also compensate for other medical costs, including surgeon’s fees, doctor and nursing consultation, room rent charges, medications, and many more.

Delivery at a private hospital is expensive.

These days, people are choosing private hospitals because of their facilities and quality of treatment. The demand is also high for private hospitals due to their astonishing facilities and amenities. But these hospitals are quite expensive, and if you choose a private hospital for the delivery, then it will make a hole in your pocket. The cost of a normal delivery in a private hospital is between Rs. 60,000 to 80,000, and on the other hand, the rate of cesarean delivery may go up by an additional Rs. 40,000 to Rs. 60,000. The pregnancy phase is very delicate and unpredictable. And in any stage, a complication may happen that will affect the bottom line cost. That’s why people are opting for insurance policies with maternity benefits.

Covers the newborn baby from day 1

Most health insurance policies don’t offer coverage for newborn babies in their plan till they are 90 days old. But health insurance policies with a maternity cover offer coverage for newborn babies from day one. These policies also cover vaccination charges for the newborn until the end of the policy year, without paying an extra premium.

Prepares couples for any complication

Maternity insurance coverage also helps the couple to deal with any complication like premature birth. In the case of premature birth, the newborn needs to be kept in an incubator in a neonatal intensive care unit (NICU) for at least 20 days. The cost per day is nearly Rs. 10,000 and for 20 days, you need to pay Rs 2,00,000. This unanticipated situation may give you more stress because of the huge cost. However, you can overcome this financial stress with a well-constructed maternity insurance policy as it compensates for most of the finances. Some policies also bear expenses for the newborn baby if he/she has a critical illness like a congenital disorder.

It helps the couple to start a happy family without stretching their financial condition.

In this steep competitive era, many couples often fear starting their families because of the additional expenses that come with having a baby. Most health insurance plans with a maternity cover come with sub-limits (1 to 4 years depending on the insurer). This means you can plan a baby without much thinking about financial expenses. It is also true that medical costs for delivery are enhancing with each passing day, and thus, only maternity insurance can help you deal with the situation.

Some other benefits that you can get from maternity insurance plans are,

• Cashless hospitalization: Many pre-eminent insurers offer cashless facilities to their network hospitals.
• Flexibility to choose the sum assured: Policyholders are free to choose the sum assured as per their needs and requirements.
• Tax benefit: All policyholders can avail of tax benefits for the insurance premium paid towards maternity cover under Section 80D of the Income Tax Act, 1961. 

Many insurance companies are welcoming policy buyers with maternity coverage. Compare all these plans and their features and benefits at iiflinsurance.com, and then decide the best maternity health insurance policy that resonates with your requirements and needs.