Health insurance for newborns is increasingly recognised as a crucial aspect of parental planning for financial security. With rising medical costs, securing health insurance can be a decisive factor in ensuring a child's well-being.
“Having insurance for a newborn is crucial to ensure financial stability and access to quality health care throughout their life. There can be medical conditions like birth-related complications, congenital conditions, or extended neonatal intensive care unit stays that can result in high medical expenses. Besides this, routine vaccinations and regular health check-ups in the first year can further add to the medical costs,” said Ajay Shah, head - distribution at Care Health Insurance.
Why you should have health insurance for newborn
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Hospitalisation costs: Coverage for any necessary hospital stays
Vaccinations: Essential immunisations to protect against diseases
Routine check-ups: Visits to paediatricians to monitor growth and development
Emergency care: Financial support in case of unforeseen health crises
There are two main types of policies you can consider for your newborn.
Individual policy: It covers only the newborn and offers dedicated coverage but premiums might be higher compared to family policies.
Family floater: Under this policy, your newborn is covered along with other family members. Although the premiums tend to be lower, the coverage amount is shared among all insured members.
Here are some key points to understand about health insurance for a newborn baby in India:
Coverage: This type of insurance generally covers various medical expenses, including hospitalisation, doctor consultations, vaccinations, and other essential healthcare services the baby might need.
Benefits: Health insurance for newborns helps parents handle the financial challenges of medical bills related to childbirth and postnatal care, ensuring the baby gets necessary medical attention without placing a significant financial strain on the family.
Inclusions: Coverage typically includes costs associated with pre- and post-natal care, congenital conditions and any illnesses or injuries the baby may experience during the policy term.
Add-ons: Parents can often enhance the policy by adding riders or additional benefits, such as coverage for critical illnesses, specialised medical treatments, or higher coverage limits.
Premiums: The premium amount, or the cost of the insurance, is influenced by factors like the baby’s age, the sum insured, coverage duration, and the chosen insurance provider. Regular premium payments are essential to keep the policy active.
Waiting period: Some policies may include a waiting period before certain benefits, such as coverage for specific illnesses or surgeries, become effective. It's crucial to be aware of these waiting periods when selecting a policy.
Renewal: Newborn health insurance policies typically require yearly renewal. Parents must renew on time to maintain coverage for their child’s medical needs.
Network hospitals: Many insurers have a network of hospitals where policyholders can avail of cashless treatments. Opting for a policy with a broad hospital network ensures easy access to healthcare services when needed.
“Including your newborn in a family floater plan ensures seamless coverage and cashless hospitalisation benefits. Additionally, premiums paid for such policies are eligible for tax deductions under Section 80D of the Income Tax Act, making it both a practical and financially sound decision for new parents,” said Shah.