Adding a child to the family is a joyous occasion for parents. It is also an important milestone for every couple as they get an added responsibility for the child. While pregnancy and childbirth are wonderful experiences, they can prove expensive too.
Thanks to the availability of modern treatments and the rising medical costs, childbirth expenses have increased considerably. A couple can suffer a considerable financial strain in an otherwise joyous milestone of their life, given the high medical costs. As such, a maternity health insurance cover can prove helpful.
Many health insurance plans offer maternity cover as a part of their coverage benefits. This cover provides financial assistance during pregnancy and childbirth. Maternity coverage in health insurance plans covers the medical expenses incurred during childbirth, thereby giving financial relief to the new parents.
Here are some of the salient features and available benefits of a maternity cover in health insurance plans –
Maternity cover is available in health plans that offer coverage as an inbuilt benefit or as an optional one. The eligibility parameters of the cover depend on the plan that you choose. However, some of the common criteria include the following –
The minimum age of the mother should be 18 years. As far as the maximum age is concerned, it varies across different plans. Usually, coverage is granted to mothers aged up to 45 years.
Some plans offer maternity coverage only at specified sum insured levels.
A waiting period ranging from 9 months to 48 months applies before maternity coverage is allowed.
The reason why maternity cover is essential can be highlighted in the following points –
The cost of maternity-related treatments has gone through the roof. Prenatal care, medicines, doctor's fee, and diagnostic tests have all become expensive. Moreover, the delivery expenses have increased considerably too. Moreover, in the case of C-section deliveries, the costs multiply.
Given the increasing maternity costs, meeting the expenses of childbirth can cause a financial strain, especially in the case of middle-income families. As such, having a financial provision in the form of maternity coverage is recommended.
When you have a financial provision for meeting maternity medical expenses, you don’t have to compromise on the quality of care. You can afford high-quality medical care to provide the best facilities and maximum comfort to the would-be mother.
Lastly, maternity cover can bring in tax benefits too. The premium paid for the coverage qualifies for deduction under Section 80D. You can claim a deduction up to Rs.25,000, which can help you save up to Rs.7500 in taxes if you are in the highest tax slab.
According to a health survey by the National Statistical Office in 2017-18, 9 out of 10 women delivered a child in a hospital. Moreover, C-Section deliveries have risen in the past decade. While 26% of deliveries in Government hospitals are by C-Sections, 56% of the births are in urban private hospitals. The survey also stated that C-Section deliveries cost about five times more than normal deliveries. And these numbers are old. Imagine the increased medical expenses now! Given these rising costs, a maternity health plan is a must.
(Source: Hindustan Times)
Maternity cover in health insurance plans usually includes the following coverage benefits –
Moreover, some plans also allow coverage for IVF treatments, infertility treatments, complications of pregnancy, medical complications suffered by the newborn child, first-year vaccinations of the child and other such expenses.
Though comprehensive, maternity coverage usually has the following exclusions –
If you would be planning a family in the near future, you should buy the maternity cover at the earliest. This is because the coverage has a waiting period. When you buy the coverage at an earlier date, you can wait out the waiting period and then get complete coverage when you actually get pregnant. Moreover, when you buy the maternity cover at a younger age, you would also get a wider scope of coverage and that too at lower premium rates.
Usually, the following documents are required to avail of maternity coverage –
However, in modern times, buying maternity covers has become paperless with the digital mode. HDFC ERGO allows you to buy the policy without any documents by filling up and submitting an online proposal form. Pay the health insurance premium online, and the policy gets issued.
When you are investing in a maternity health insurance plan, here are important factors that you should consider –
Since maternity cover has a waiting period, check the period when you buy the plan. Ensure that the period matches your plan for starting a family. If you plan to start a family soon, opt for plans that have a lower waiting period.
The coverage limit is another aspect that should be checked. Maternity coverage has maximum coverage limits up to which the plan covers the medical costs. Lower limits might result in out-of-pocket expenses. So, opt for plans with a higher coverage limit to cover most medical expenses.
Also, check the coverage scope of maternity. While delivery expenses and pre and post-natal care are covered under all plans, look for other coverage benefits that are included in the cover, like termination costs, infertility treatment costs, etc.
Also, check out the complete list of exclusions under maternity coverage. This would help you understand the scope of coverage and the expenses which would be covered by the plan.
Making a claim for maternity cover is the same as making a claim in your health insurance policy. Here are the steps –
Here are five main benefits of maternity cover for young couples –
The first benefit is the coverage against exorbitant maternity-related expenses. As the maternity cover pays for these expenses, you can breathe a sigh of relief.
When the medical costs are paid by the health plan, couples can opt for the best medical care without worrying about its affordability.
Maternity cover lends financial security against the burden of paying for expensive medical costs associated with childbirth.
As you safeguard your finances from medical expenses, you can invest the saved money into different avenues to create savings for your child’s future.
You get tax savings under Section 80D on the premium that you pay for the maternity cover. Deduction up to Rs.25,000 is allowed on the premium amount, reducing your tax liability, which also grows your disposable income. This can be used to create savings for your bundle of joy.
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No, maternity insurance plans do not come without a waiting period. All policies have a waiting period that starts from a minimum of 9 months and can go up to 48 months. So, if you are planning to have a child, buy a plan at the earliest.
Yes, you can get maternity insurance plans if you are already pregnant. However, the plan would come with a waiting period, and your current pregnancy would not be covered. That being said, if you plan on having another child, the plan would cover the subsequent pregnancy, provided that you get pregnant after the maternity waiting period is over.
Yes, maternity insurance coverage is beneficial for a couple as it covers the cost of deliveries and other maternity-related expenses. Given that medical and delivery costs can prove to be quite expensive, a maternity cover can protect you from the financial losses you suffer during childbirth.
You should consider the following parameters when buying a maternity insurance policy –
● The maternity waiting period
● The coverage limits
● The coverage features included in the policy’s scope
● Specific exclusions pertaining to maternity
Opt for a policy that offers a comprehensive scope of coverage. Also, if you plan on being a parent soon, look for plans with the lowest waiting period.
Usually, many maternity insurance plans cover only up to two childbirths. However, there are some plans that do not put restrictions on the number of childbirths. Such plans cover unlimited pregnancies. So, if you are planning a third child, look for plans wherein the third pregnancy would be covered.
Yes, if you are already pregnant when buying a health plan, the pregnancy would be considered a pre-existing condition. If the plan has a maternity cover, your pregnancy would be covered after the specified maternity waiting period. If there is no maternity cover, medical complications due to pregnancy might be excluded.
Maternity insurance usually covers the cost of childbirth and pre and post-natal care. Thereafter, depending on the plan selected, you might also get coverage for the following –
● Complications of pregnancy
● Infertility treatments
● Newborn coverage
● First-year vaccination of the newborn.
The maternity insurance premium depends on the pricing policy of the insurance company. It usually depends on the following factors –
● Age of the insured members
● Coverage amount
● Coverage limits
● Scope of coverage
● Medical history
● Policy tenure
● Discounts available.
No, pregnancy termination is usually not covered by maternity insurance. However, some plans cover it if it is specifically mentioned in the policy wording.
Yes, second childbirth is covered under almost all maternity insurance plans.
The coverage of the newborn depends on the plan and its scope. Some plans allow coverage for the newborn baby as a part of the maternity benefit, while some plans allow additional coverage for the newborn baby. Again, in some plans, the newborn coverage can be availed as an add-on benefit at the payment of an additional premium.
Before starting a family, you should buy a maternity health insurance plan as early as possible. This is because the plan would have a waiting period that would be applicable before maternity coverage is granted. So, to wait out the waiting period, it is recommended to buy the plan early on.
To buy a maternity health insurance plan, you should be 18 years old and choose a coverage policy.
Yes, many regular health plans provide maternity cover as a part of their inbuilt coverage benefit. Others might offer the coverage as an add-on. Some plans, however, do not offer maternity coverage at all. So, check the scope of the policy when buying to find out whether maternity is covered or not.
Coverage for birth deformity varies across plans. Most plans do not cover congenital defects. However, some plans do and pay a lump sum benefit if your baby is born with a deformity. You can use the benefit for getting treatments or for any other financial liability that you might have.
Along with maternity cover, look for the following benefits –
● Free annual health check-ups
● Sum insured restoration
● Coverage for the newborn
● New born birth defects
● International coverage
You can choose other coverage benefits depending on the requirement of your daughter and her spouse.
There is no best time. You should buy the coverage at the earliest so that you can wait out the maternity waiting period and get complete coverage when you get pregnant.