Planning Parenthood: Understanding Maternity Insurance

Welcoming a new member into the family is undeniably one of life’s most joyous occasions. However, the financial implications of maternity care necessitate careful planning. Maternity insurance offers a solution to this, providing coverage for childbirth-related expenses. Here, we delve into the essentials of maternity insurance and key considerations before obtaining one.

Maternity Coverage in Health Insurance

While health insurance policies vary, maternity benefits are typically not included in basic plans. Individuals may need to opt for a maternity add-on cover or select a plan incorporating maternity benefits.

“Given the escalating hospitalization expenses in India and a medical inflation rate of around 14%, it’s prudent for newlyweds planning to expand their family to consider maternity cover,” advises Vivek Chaturvedi, CMO and head of direct sales at Digit General Insurance.

The average cost of childbirth in India ranges from ₹75,000 to ₹1 lakh, with higher expenses for C-section deliveries or private hospitals in metro areas.

Timing Maternity Cover

The decision to opt for maternity cover depends on one’s life stage.

“For young couples planning to have children, including maternity cover in their financial planning is advisable. With healthcare costs, including childbirth expenses, rising steadily, maternity cover provides essential financial support,” emphasizes Parthanil Ghosh, President of Retail Business at HDFC ERGO General Insurance Company.

Policy exclusions and waiting periods vary, emphasizing the importance of comparing policies online. It’s crucial to consider waiting periods, which range from 9 months to several years.

Coverage Details

Maternity cover typically includes expenses related to childbirth, hospitalization, room rent, and C-section deliveries. Additionally, it covers pregnancy complications, medically necessary terminations, and post-natal care for the baby, including vaccinations.

“Maternity plans may also cover infertility treatment and the hospital expenses of the baby for up to 90 days,” adds Chaturvedi.

Exclusions and Limitations

Individuals with pre-existing conditions complicating pregnancy should ensure coverage. Specific conditions or limitations may apply to multiple births or infertility treatments.

“While most health insurance plans don’t cover infertility treatment, some newer plans may offer coverage for IVF treatments. It’s essential to review inclusions and exclusions carefully,” suggests Siddharth Singhal, business head of health insurance at Policybazaar.com.

Key Considerations

Assessing individual needs is vital, considering comprehensive coverage with extended benefits like infertility treatment costs. Evaluate waiting periods to align with family planning goals.

“Opt for a cover with a higher limit and scrutinize the claims settlement ratio,” advises Ghosh.

A well-chosen maternity insurance policy can alleviate the financial burden of childbirth, allowing parents to embark on their journey with peace of mind.