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. 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!
Table of Contents
The Rising Cost of Childbirth in India
What does Maternity Insurance cover?
How Much Can You Save with Insurance?
Key Factors of Maternity Health Insurance
The Rising Cost of Childbirth in India
Did you know that the 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 financial stress, typically if you belong to a middle-class family.
You can save up to ₹7500 in taxes annually. 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 a higher tax slab of 30% tax brackets)!!
What does Maternity Insurance cover?
Maternity Health Insurance covers various pregnancy and child-birth related costs such as:
- Prenatal appointments
- Ultrasounds
- Postpartum care
- Vaccination
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.
How Much Can You Save with Insurance?
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.
Key Factors of Maternity Health Insurance
Here are key factors to keep in mind when selecting maternity health insurance coverage:
- Premium: Ensure the maternity insurance plan fits within your budget, as some plans may have higher health insurance premiums.
- 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.
- 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.
- 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.
- 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.
5 Incredible Maternity Insurance Policies
Planning for a baby involves considering various aspects, and one crucial factor is maternity insurance. Maternity cover policies offer financial protection and peace of mind during pregnancy and childbirth. Explore the various maternity health insurance plans available in the market, understanding the coverage options and benefits they offer.
i) Care Health Joy Health Insurance
With the Joy maternity insurance policy offered by Care Health Insurance, you can enjoy premium-quality healthcare facilities without stressing about finances. It comes with a waiting period of nine months. Besides this, it provides newborn baby coverage for up to 90 days.
ii) Active Health Platinum Insurance
This health insurance policy is provided by the Aditya Birla Health Insurance Company with unique benefits such as chronic management programs, modern treatments, and much more. It covers all the expenses related to the newborn baby. Avail 100% of the sum insured if no illness relates during the policy period. Get a 50% no-claim bonus for not making any claims within a year.
iii) Chola MS Family Healthline Insurance
Under this family floater plan, maternity coverage is provided to the policyholder. However, the waiting period is five years. Privilege Healthline, the fourth variant of Chola Healthline offers coverage for maternity treatment and newborn baby expenses to keep the new mother free from financial instability.
iv) Future Generali Health Total Insurance
It is a complete package of protection for both you and your loved ones. Discounts, tax benefits, coverage for medical expenses, premium payment flexibility, and much more can be availed of under this policy. Get a newborn baby cover for up to 91 days after birth. Up to a year after the child's birth, all vaccine costs are covered.
v) Star Women Care Insurance Policy
Unlike most health insurance plans, pregnant women can buy this policy as long as they submit the scan reports taken between their 12th and 20th week of pregnancy. A policy specifically designed to cover the health needs of women and her family. Delivery expenses including the normal and Caesarean section are covered up to the limits mentioned in the policy clause.
| Policy | Coverage | Waiting Period | Newborn Coverage | Sum Insured | Extra Benefits |
|---|---|---|---|---|---|
| Care Health – Joy | Mother + Child | 9 months | Up to 90 days | ₹3L–₹1Cr | Private AC room, tax benefits, pre/post hospitalization |
| Aditya Birla – Active Health Platinum Enhanced | Mother + Child | Standard health waiting | Yes | Depends on plan | 100% SI restore, 50% No-Claim Bonus, international emergency |
| Chola MS – Family Healthline (Privilege) | Mother + Child | 5 years | Covered up to SI | ₹1L–₹25L | ₹10L/delivery, Tier-2 discount, long-term discount |
| Future Generali – Health Total Mediclaim | Mother + Child | Standard health waiting | Baby cover 91 days | Based on plan | Vaccines 1 year, doctor consultations, ambulance |
| Star Health – Women Care | Mother + Child | Based on pregnancy reports | Vaccines, screening, hospital care | As per policy | OPD antenatal cover, miscarriage accident cover |
Mistakes to Avoid when buy Insurance
It is important that you make sure that you are getting the right maternity coverage so as to not waste your money. However, there are a few common mistakes one can make when buying this type of coverage.
i) Not purchasing maternity plan
Not all health insurance policies cover maternity-related expenses under the base plan. So, if your health insurance plan doesn't cover maternity-related costs, you can opt for maternity cover as a rider for a little extra premium. Hence, it is important to first check if your health insurance covers maternity expenses and then choose to buy a rider accordingly.
ii) Waiting Until Pregnancy to Buy
You may be wondering what is the need to buy maternity insurance if you are not expecting pregnancy any time soon. There's usually a waiting period of 9 months to 6 years before you can claim pregnancy-related expenses. Buy it well in advance to avoid the waiting period.
iii) Calculate You the Real Cost
We all love to save our hard-earned money. But, choosing a low-cost maternity cover will only decrease the scope of coverage you receive under the plan. The cost of the plan is usually proportional to the extent of coverage. Meaning, that the lower the price you pay, the lower the sum insured and the resulting coverage. Choose a plan that has a reasonable sum insured, according to your budget and requirements.
iv) Plan Should Also Cover Baby
While looking for maternity insurance, you may overlook coverage for your baby. It is important to make sure that your baby also receives coverage under the plan, not just you. Because not all insurance plans offer newborn baby coverage. So, you have to check with the insurer or read the policy wording of a plan to find out if this is an inclusion.
v) Forgetting Inclusions/Exclusions
With maternity plans there may be hidden exclusions or limits which could restrict your access to certain benefits or treatments. Always read through everything to get an idea of what's covered before signing. Check what's covered and not covered in the plan, such as specific procedures like a cesarean section.
vi) Not Considering Pre-Existing Conditions
Some policies may restrict coverage for certain pre-existing conditions such as high blood pressure, diabetes or advanced age (i.e., over 35). If the policy has restrictions on these types of situations it may not provide adequate coverage if needed during delivery or postpartum care.