Planning a baby? Plan A Maternity Insurance First!

Picture this: You plan your weekend trips, abroad vacations, and movie outings. You even make sure to get
maximum discounts on tickets. But in the midst of all these plans, have you ever thought about planning for a
health insurance that covers maximum maternity expenses?

Parenthood is a beautiful phase in every couple's life. It marks the start of a new and joyous chapter filled with love and excitement. However, along with the celebrations, there also come various financial responsibilities that accompany this journey. From hospital bills to regular medical check-ups and more, these expenses become a part of the overall experience.
Agree?

If you're a new or expecting parent, you should wonder how to manage your budget for prenatal care and labor expenses. One solution that can provide assistance in this regard is having the right maternity insurance!

DID YOU KNOW THAT COST OF DELIVERING A BABY IN INDIA CAN BE AS HIGH AS ₹2 LACS!!!
This can increase your financial woes! Given the high maternity expenses, meeting them can cause a financial stress, typically if you belong to middle-class family.
Fact: There is a lack of awareness for including maternity cover in the active health insurance. You can cover
upto 90% maternity expenses with the right maternity cover.
No need to compromise on quality of delivery! As a parent, we all wish that our babies entry into this world is
handled in the most delicate and caring manner! If you have a medical insurance, you don’t have to worry about the quality of medical care as it will always be covered!
It’s a Beacon of hope in emergencies! Maternity Insurance doesn’t only cover the costs related to pregnancy but it also goes an extra mile and becomes helpful in emergency situations.
Additionally, you can Save up to ₹7500 in taxes annually! Yes, you read that right. The premiums paid for maternity are covered as a part of health insurance policy. These premiums qualify for deduction under
section 80 D. The ceiling of premium in this category for tax benefits is ₹25000, which may lead to a saving of ₹7500 annually,(that is if you are in higher tax slab of 30% tax brackets)!!

Maternity Health Insurance covers various pregnancy and child-birth related costs such as:

1.  Prenatal appointments
2.  Ultrasounds
3.  Postpartum care
4. Vaccination for the newborn

In the market, you can find numerous health insurance plans that provide coverage for maternity expenses. This coverage can be included as a built-in feature within the health insurance plan or offered as a separate rider or add-on benefit (that is, as an add-on that the insured can buy by paying the extra health insurance
premium.).
Typically, maternity cover is a part of health insurance policy. The premium charged for maternity insurance is usually on the higher side. The reason is that pregnancy is a common claim and is claimed more often than not.

Here, we have taken example of a typical middle class man of the 35 years and his spouse being of 30 years.
 

If they take a health cover of ₹10 lakhs, following would be the premiums with and without maternity benefits:
 

• With Maternity Benefit: ₹30805/
• Without Maternity Benefit: ₹14057/-
   

Difference: ₹16748/-

But wait! Aap toh abhi kataar mein hai!
So let us talk about the waiting period!
In India, pregnancy is considered as a pre-existing condition. And hence, there is typically a waiting period for
this policy. This waiting period ranges anywhere between 9 to 48 months. On average, it is around 24 months
i.e. 2 years.
Thus, planning well in advance is critical!
We typically think of such financial backups during family planning and not before!

So, if you are married recently, make sure that you take a health insurance with maternity cover immediately and then may be enjoy a 2-year cooling period, travelling around the globe with the worries of maternity costs at your back as as and when they will come, you are rest-assured that they will be taken care of!

So, now let us do the math:
By now you have understood from above that typically the cost of having a maternity rider in the policy will cost you somewhere around ₹16748/-
 

Assuming that you have waited for 2 years, and then an additional year of conceiving, here is how much you will save!
Cost of maternity cover: ₹50244/-
Now let us say, on an average if the cost of hospitalization and maternity is ₹1.5 lakhs.
Then, by following this simple process, we have helped you save approximately ₹1 lakh!

The extent of coverage depends on the specific health insurance plan chosen by the individual and the insurance company they opt for. The primary purpose of such a policy is to protect policy holders from depleting their savings in the event of a medical emergency.

This is contrary to usual insurance, where claims may or
may not be raised for a condition. Also, availing of maternity treatments are expensive. Nonetheless, you can
find a cost-effective plan with proper research.

Before buying maternity health insurance, it's crucial to carefully assess your needs. Making a hasty decision might not be beneficial when you actually require it. Now let’s highlight some important considerations to keep in mind when purchasing a policy.

1. Premium: Ensure the maternity insurance plan fits within your budget, as some plans may have higher health insurance premiums.

2. Waiting Period: Maternity health insurance plans typically have a waiting period during which claims are not accepted. Opt for a plan with a shorter waiting period for maternity benefits.

3. Sub-Limits: Maternity expenses may have sub-limits, meaning benefits cannot exceed a certain limit. Choose a plan with lower sub-limits to maximize coverage benefits.

4. Sum Insured: Choose a health insurance policy with a sufficient sum insured. Although higher sums may require higher premiums, compromising on the sum insured may not be advantageous in the long run.

5. Network Hospitals: Cashless treatment is available only at network hospitals. To save time during emergencies, select a maternity health insurance policy with a wide network of hospitals, including those near your home.