What is Maternity Insurance?

Did you know that, on average, it costs between Rs.50,000 and Rs.2 lakhs to give birth in a hospital in India? After delivery, parents must also take care of numerous postpartum and infant healthcare expenses. These expenses can result in a stressful financial situation for young families.

While general health insurance covers health care costs, it often does not cover maternity-related expenses. This is why you need maternity insurance that provides comprehensive pregnancy coverage.

Let’s learn more about maternity insurance and understand what it is, why you need it, what it covers, and how you can benefit from it.

What is maternity insurance?

Maternity insurance is a pregnancy health insurance policy that covers hospital and health care expenses at the time of delivery and for a period after that. Maternity health insurance allows new parents to cover child-birth expenses and offers them considerable financial security in the first three months after a child is born.

Benefits of maternity insurance

When discussing maternity insurance, a question arises: “Why do I need it?” To answer this question, the first step is understanding the benefits that maternity insurance can give you.

Financial support – Maternity health insurance offers valuable financial support for new parents by covering pre- and postpartum expenses such as hospitalisation bills and delivery expenses.

Stress-free parenthood – Pregnancy insurance promises a stress-free initiation into parenthood as it covers the health expenses of the newborn.

Long-term benefits – Maternity insurance may also cover a second pregnancy under one policy, offering you benefits over the long term.

Who is it for?

Maternity insurance is for anyone who wishes to have babies in the future. Newlyweds may consider purchasing this insurance if they plan to have a baby in two to three years. It is also for parents aspiring to have a second child and need financial support to meet the expenses.

What does maternity insurance cover?

Understanding the specifics of maternity insurance coverage can help you gauge the scope and benefits of purchasing a pregnancy insurance policy. Here is what maternity health insurance generally covers.

#1. Hospitalisation and medical expenses– Maternity health insurance covers hospitalisation and delivery expenses 30 days before and 60 days after delivery. It also takes care of pre-and postnatal expenses.

#2. Newborn coverage – The pregnancy health insurance also covers your newborn for up to 90 days after birth. This includes regular health check-ups and vaccination expenses.

#3. Complications – Delivery can be unpredictable, and maternity health insurance covers expenses if complications arise.

#4. Termination expenses – In some instances where the pregnancy risks the mother’s life, and the doctors deem termination medically necessary, the maternity insurance also covers termination expenses.

#5. Second pregnancy coverage – Most maternity insurances also cover a second pregnancy and offer all the benefits they did in the first.

Exclusions from maternity insurance coverage

While most maternity insurances offer comprehensive coverage, certain expenses are excluded. Maternity insurance primarily covers costs related to delivery. The following are not covered.

#1. Pregnancy check-ups – Maternity insurance does not cover expenses incurred in the first nine months of pregnancy, including consultations, diagnostics, and follow-ups. 

#2. Congenital diseases – Maternity health insurance does not cover medical expenses related to infants’ congenital conditions such as autism, Down syndrome, heart diseases, or physical impairments.

#3. Termination in the first 12 weeks – Terminations in the first 12 weeks and non-medical terminations are not covered under the pregnancy insurance policy.

#4. Fertility treatments – Maternity insurance does not cover IVF and infertility treatments.

#5. Unprescribed medicine – Medicines not prescribed by doctors, such as health supplements, are not covered. Any equipment related to infant care or postpartum healing is also not covered.

#6. Late pregnancies – Pregnancies after age 45 are not covered by maternity insurance.

Eligibility criteria

To be eligible to apply for maternity insurance, the applicant must be-

#1. Married

#2. Between the ages of 18 and 45

#3. Must not have had two or more childbirths.

Documents required to apply

The documents required to apply for maternity health insurance include the following:

#1. Identity, address, and age proof such as Aadhar Card, Voter ID, Passport, Ration Card, or Driving License.

#2. Medical examination reports – to prove that you are healthy at the time of application and do not have any underlying conditions.

Documents necessary for a maternity health insurance claim are

#1. Filled insurance form, which is usually sent to the insurance provider by the hospital

#2. Discharge summary and original hospital bills

#3. Policy and KYC documents

Factors to consider

Before purchasing maternity insurance, choosing the best option that meets your financial needs is vital. When evaluating if an insurance policy fits your requirements, there are three factors to consider.

#1 Coverage

Maternity insurance offers coverage from Rs. 50,000 to Rs. 1 lakh. Check the coverage terms beforehand and select a policy that matches your financial situation.

#2 Time of Purchase

Maternity insurance usually has a waiting period of two to four years, during which you cannot make an insurance claim. You must consider the waiting period of a policy before choosing one. Also, remember to plan well in advance so that by the time you are ready to have kids, you will be eligible for insurance claims.

#3 Inclusion and Renewal

Check policy details to understand if you can include maternity insurance as an add-on to your existing general health care policy or if you need to purchase a new policy altogether. Also, consider renewal options and the validity of such renewals.

#4 Benefits 

A good maternity health insurance policy offers multiple benefits for various needs. You may look for benefits such as coverage of C-section costs, pre-hospitalisation expense coverage, cashless settlement options, and coverage of hospital room charges.

To sum up

Maternity insurance is indispensable for couples who wish to become parents one day. It allows you to welcome a new member into your family without dealing with the financial stress it brings.

When choosing a maternity health insurance policy, choosing one that offers comprehensive coverage and benefits is essential. Women’s Health Insurance Policies from Tata Capital cover women’s health expenses, maternity-related costs, child healthcare costs and more. These health insurances also offer numerous benefits, such as midterm inclusion of maternity coverage and lifelong renewal.

To learn more, visit the Tata Capital website and apply today!