The birth of a child ushers in a new phase for the family and leads to the promise of days filled with happiness and joy. However, apart from happiness, there are other things on your mind as well. For example, is the house big enough? Are there good schools in your locality? Which hospital should you choose? Will you be able to take care of a baby?
Such questions storm around your head and give you stress. But the most important question of all is whether you have health insurance to cover the pregnancy expenses. This is a thought that you must give ample time to when deciding which health insurance that covers pregnancy to choose.
Health insurance that covers pregnancy or maternity insurance refers to a type of insurance that covers expenses relating to pregnancy and childbirth up to a predetermined limit. Such insurance plans offer a plethora of benefits, which include:
- Wide-ranging Coverage
Having effective health insurance that covers pregnancy prevents you from stressing over expenses relating to delivery (both regular and caesarean), pre and post-hospitalisation, room rent, ambulance, nurses, surgeons, post-delivery complications, and medical expenses fornewborn.
- Tax Benefit
Section 80D of the Income Tax Act[i] of 1961 allows you to claim tax benefits for the premium paid towards health insurance. As a part of this, you can claim a tax deduction of up to ₹25,000. However, this is only applicable if the premium paid is for your spouse, children and yourself.
- Cashless Payment Facility at Network Hospitals
When selecting health insurance that covers pregnancy, make sure to focus on the network hospitals section. This is because a major advantage of such insurance policies is the cashless payment facility. A cashless facility is a benefit afforded to policyholders wherein the hospitalisation expenses are directly settled between the insurance provider and the hospital.
So, you can make use of medical facilities at hospitals without having to pay the bills upfront. However, it is important to note that this facility is only available at network or partner hospitals of the insurance provider.
- No-claim Bonus
A no-claim bonus is a lucrative benefit that is offered to policyholders if they do not claim during a policy year. The period chosen depends from one insurance provider to another and could range from 1 year to3 years. No-claim bonus is divided into two types:
- Cumulative Benefit: This benefit increases the coverage or the sum insured of the policyholder, although the value of the premium remains the same.
- Discount on Premium: In this case, there is a discount given on the premium amount, while the sum insured is unchanged.
- Free Look Period
A free look period is a feature[ii] introduced by the Insurance Regulatory and Development Authority of India (IRDAI). This benefit allows policyholders to return a policy within 15-30 days of purchasing it if they are not satisfied. The duration can vary from one insurance provider to another.
Furthermore, once you return a policy, your premium amount will be refunded. However, the insurance provider may deduct a certain amount depending on their terms and conditions.
If you want to cancel your purchased health insurance that covers pregnancy, contact the customer care of your insurance provider and submit a cancellation request. You might be asked to fill a few forms at this time too. Once the request is submitted, your insurance provider will accept it and refund your premium amount within a few days.
Plan Your Purchase of Health Insurance That Covers Pregnancy
Now that you have seen the valuable benefits offered by health insurance that covers pregnancy, it is in your best interest to begin planning your finances. Write down your requirements, research the plans offered by different insurance service providers, and analyse the claim settlement ratio before selecting your plan.
Make sure you consider credible insurance providers to eliminate any possibilities of financial troubles in a time of need. Insurers such as Care Health Insurance offer health insurance that covers pregnancy with multiple valuable benefits that can make your life easier during a milestone moment in life.