How Health Insurance can help young couples who are planning a family?

Parenthood can be a life-altering and incredible journey. However, young couples who are looking to start a family have a lot of planning ahead of them – physically, emotionally, and financially. Given the rising cost of healthcare and various expected and unexpected issues that may crop up with a pregnancy, it is imperative to have some sort of financial backing in the form of health insurance that can help defray various expenses that may arise during and after childbirth.

The Need for Maternity Insurance

Maternity assistance is not just limited to delivery-related expenses. It covers everything from doctor’s visits, prenatal care, medications, tests and sonographies to room rent and hospitalisation expenses, mother care, post-natal care, NICU (if required), vaccinations, paediatrician visits, and more.

Most maternity insurance cover offers pre-hospitalisation benefits starting 30 days prior to and up till 60 days after delivery, including expenses for normal or caesarean birth and any post-delivery complications that may arise. Having a maternity cover ensures that the mother and child can get the best medical assistance and have a stress-free delivery, with all the financial requirements taken care of.

Couples should bear in mind, however, that expenses arising from pre-existing health conditions affecting pregnancy, infertility treatment, stem cell harvesting, in-vitro fertilisation (IVF) treatments, etc., are standard exclusions from maternity insurance plans.

Maternity Insurance in India

The premise of health insurance is to cover a risk or a condition that may or may not arise. On the other hand, the probability of claiming maternity for insurance is a given. Therefore, in India, maternity insurance is not available as a standalone cover due to the certainty of a claim from customers planning a family.

However, maternity cover is available bundled as an add-on cover with certain insurance providers. This may be availed of either through individual plans or employer-sponsored programs. Read on to find out how young couples can get maternity coverage under various insurance plans.

Individual cover:

Women can purchase a personal health insurance plan or a family floater with their partner that offers maternity cover as an add-on rider. The premiums payable for such a cover will be higher due to the certainty of a claim. It is also essential to consider that the premium for maternity insurance keeps increasing as you grow older.

More importantly, all insurance providers have a minimum waiting period before which you cannot make a claim. The waiting period can be anywhere between two and four years and varies from insurer to insurer. Many new-age health plans offer a much shorter waiting period of 9 to 12 months. Taking into account the non-negotiable waiting period, couples should buy a maternity cover at the earliest, even if they aren’t planning on starting a family right away.

Another factor to consider is the insurance sub-limit or coverage for maternity within the overall sum assured. The maternity cover may be a percentage of the overall cover; hence, couples should opt for a cover they feel will be adequate for their needs.

Employer-sponsored Health Plan:

Most employers offer maternity cover to their female employees as a part of the group health insurance cover. Women should check with the human resources department to understand the maternity cover offered and the sub-limits within the plan. The limits can be customised and increased by the employer, but this will depend on your seniority/position in the organisation.

The advantage of utilising an employer-sponsored maternity cover is that it completely does away with any waiting period. As long as you are a valid employee, you can choose to avail of the maternity benefit whenever you want.

Insurer approved pre-set maternity packages: 

Many hospitals now offer a tabled maternity package that includes hospitalisation for a set number of days, OT costs, doctor’s fee, medication, and other ancillary expenses. There may be different types of packages based on the scope of service offered.

Couples can scout for such plans offered by various insurance providers and pick the best one based on their budget, location, and service bouquet. Given the volume of business involved, insurance providers are able to negotiate deep discounts with hospitals on these packages, which would otherwise prove significantly expensive if you pay out of your pocket. Another advantage is that these packages tend to be cashless, so there is very little expense that the couple will have to incur by themselves.

Maximising maternity benefits

There is a possibility that many women may have access to multiple insurance plans – say, one from the employer and one as a self-purchased individual plan. In such a situation, women should get the initial expenses covered via their employer’s group health insurance plan that’s routinely offered as a job perquisite. Once the sub-limit is exhausted, the residual expenses can be filed as a reimbursement claim with one’s insurance provider.

Family planning can involve various direct and indirect expenses. Before selecting a health insurance plan, couples need to conduct a cost-benefit analysis and evaluate health insurance plans based on various parameters such as higher sub-limits, lower waiting period, cashless claims, etc.

Insurance plans that automatically include the baby as a part of the family floater plan should also be considered. After all, it will grant your child health insurance coverage from day one at no extra cost and can be carried forward within the same plan till they attain the age of 21.

Last words

A large part of the financial uncertainty around family planning can be mitigated with the right insurance plan. Rather than shopping for plans from individual insurers, you should choose from a curated list of insurance products offered by IDFC FIRST Bank, which provides some of the best health insurance plans from leading general insurance companies in the industry. What are you waiting for? Secure your family’s financial future with the right maternity insurance today!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.