Parenthood is the beginning of a new chapter in life that can be as magical as it can be challenging. Whether it is your first time or not, the responsibilities that come with being a parent can quickly become overwhelming.
So if you are planning to expand your family, it is best to review your financial situation to prepare for the upcoming transition.
Pregnancy insurance is a financial tool that can help you immensely through the journey of becoming a parent. This type of insurance covers all of the costs associated with childbirth for a set period of time. You can purchase it as a standalone policy or add on to your health insurance policy with maternity coverage by paying an additional premium.
A normal delivery in a good hospital will cost anywhere between 50,000 and 2 lakh rupees. This will eat into your savings account and prevent you from saving for other important items. Pregnancy insurance covers all of these costs without putting a financial strain on you.
Benefits Of a Pregnancy Insurance Policy
If you have applied for maternity cover in your pre-existing health insurance or all-alone pregnancy insurance, you would not have to think about hospital expenses. Let’s look at a list of benefits you can enjoy with insurance that covers pregnancy:
- Comprehensive Coverage: It covers pre-and post-hospitalization care, medical costs, and emergency services. It also includes the cost of the space as well as the doctor’s fees.
- Child Delivery Expense: The pregnancy insurance also covers costs incurred during the delivery of the infant, such as the surgery for c-section, labour, and so on.
- Pre- And Post-Natal Care: With this benefit, you can rest assured that both the unborn baby and the mother are safe in case he/she is diagnosed with a critical illness. Some insurance providers provide newborn coverage for up to 90 days, including vaccines.
- Cashless Claims And Hospitalizations: If the care is received in one of the network hospitals of the insurance provider, you can opt for the cashless facility of the pregnancy insurance for all pre and post-hospitalization charges, medical expenses, and so on.
- No Claim Bonus: If a policyholder is expecting a second child and has not received any benefits from the birth of the first child, the insurance company will offer them a no claim bonus, allowing them to pay a lower premium for pregnancy health insurance.
- Tax Benefits: Pregnancy insurance, like every other health care policy, offers tax benefits under Section 80D of the Income Tax Act, 1961.
Exclusions in pregnancy insurance:
- Medical costs incurred prior to and after the child’s birth, unless they resulted in hospitalisation, are not covered.
- Medical costs incurred as a result of an ectopic pregnancy are not covered under the pregnancy insurance. In case you have a standalone health plan, it may be covered under it.
- If a pre-existing condition affects the pregnancy, the costs are not covered by the pregnancy insurance.
- If the baby is born before the waiting period ends, the pregnancy health insurance does not cover the expenses.
- Generally, any expenses incurred as a result of infertility treatment are not compensated. However, not all pregnancy insurance plans are the same, and you may find some plans that provide coverage for infertility.
The purpose of getting insurance that covers pregnancy is to ensure that you are as relaxed as possible during a crucial time in life, with no unexpected stressors in the form of unplanned expenses. It not only helps you financially, but it also helps you think ahead and gives you peace of mind.