My wife and I (from New Delhi) are expecting our first child next year. As part of your financial plan, you want to invest in a good health insurance plan that can cover maternity and newborn costs. How much coverage is enough in this case, and when do I need to purchase insurance? Finally, what is the premium range for this policy?
Rashmi, Jaipur
Response by Siddharth Singhal, Head of Health Insurance Business, Policybazaar.com
Financial planning should always take precedence over family planning, and it’s encouraging to see more couples becoming aware of maternity insurance. For expectant parents, choosing the right coverage for pregnancy, hospitalization, and newborn costs is ideal. If you’re planning to have a baby next year, it’s important to keep the waiting period in mind. Couples often look for insurance when the birth is already due. Ideally, she should take out insurance at least a year or two before she plans to have a child because there is a waiting period. Luckily, the insurer has made this decision easier for the customer by shortening the waiting period from her 2-3 years to 9 months, making family planning for the near future easier. In many cases, some people rely solely on corporate indemnification, but that could be a mistake.
Estimated costs of pregnancy and delivery can range from Rs 50,000 to Rs 70,000, especially for caesarean deliveries. Since you are a resident of a big city, some hospitals and procedures can cost as much as Rs 100,000. Corporate plans alone can end up spending a significant amount out of your own pocket to cover these costs. The good news is that maternity insurance covers it all. In fact, there are new plans on the market that offer coverage up to Rs. As for the premium, the monthly premium ranges from about Rs 700 to Rs 1,000 for a guaranteed amount of Rs 500,000.
Your premium may also vary depending on the amount of coverage you choose. New-age plans also include procedures such as IVF treatment, should couples need to choose. There are two options available. You can choose a separate maternity insurance policy or a health insurance policy with maternity coverage. The policy also accounts for ambulance charges, NICU and newborn vaccination charges between 30 and 90 days after birth. Apart from this, like other health insurance policies, maternity insurance is also entitled to tax benefits of up to Rs 25,000 under Income Tax Section 80D. So, I recommend that you don’t wait any longer and prepare yourself emotionally and financially for the arrival of your child.
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