TeamAckoSept 15, 2023
Welcoming a newborn into the family is a joyous occasion, accompanied by a series of important decisions. One such decision is choosing the right insurance cover for your newborn in India. With a plethora of options available, it's crucial to be well informed to ensure the financial security and well-being of your little one. In this article, let's discuss what to consider before buying an insurance cover for your newborn, providing you with the expertise and knowledge needed to make a confident choice.
In India, newborn insurance plans typically cover the following:
Hospitalisation expenses, including room rent, doctor's fees, and surgery charges
Medical expenses, such as the cost of medicines, tests, and procedures
Neonatal intensive care unit (NICU) care
Congenital disabilities, if any
Some plans also offer add-on benefits, such as coverage for vaccinations. The cost of newborn insurance depends on several factors, including the sum insured, the age of the baby, and the coverage offered by the plan.
Purchasing insurance for your newborn can provide a safety net for unexpected events. Here are the vital aspects to keep in mind.
Types of Newborn Insurance Policies: Before deciding, explore the different types of insurance policies, for example, Individual newborn insurance, Family floater newborn insurance, and Add-on newborn insurance. Each policy has distinct features and benefits, catering to various financial needs.
Coverage and Benefits: Review the coverage and benefits offered by the insurance policy. Look for coverage of medical expenses, hospitalisation, vaccinations, critical illnesses, and accidental death benefits.
Policy Exclusions and Limitations: Thoroughly understand the policy's exclusions and limitations. Certain pre-existing conditions might not be covered initially. Additionally, policies may have waiting periods before certain benefits become accessible.
Premium Payments: Evaluate the premium amount and payment frequency. Premiums can vary based on factors like coverage amount, policy type, and the child's age. Choose a premium amount that aligns with your budget while ensuring adequate coverage.
Claim Process: Familiarise yourself with the claim process of the insurance provider. An easy and efficient claim process is crucial during emergencies. Look for insurers with a hassle-free and quick claim settlement track record.
Policy Riders and Add-ons: Some insurance policies offer optional riders and add-ons that can enhance coverage.
Waiting Periods: Be aware of waiting periods associated with certain benefits. Waiting periods can be different, depending upon the terms of the plan. This may affect the availability of specific benefits after buying the policy.
Network Hospitals: Check the list of network hospitals where cashless treatments are available for health insurance policies. A wide network ensures accessibility to quality healthcare services without upfront payments.
The cost of newborn insurance in India varies depending on several factors, including:
The sum insured: This is the amount that the insurance company will pay in the event of a claim. If you choose a higher sum insured, then your policy will also be more expensive.
The age of the baby: The younger the baby, the more expensive the policy will be. This is because babies are more likely to need medical care than older children.
The coverage offered by the plan: If you chose comprehensive coverage, you may have to pay more premium. So, choose a plan that offers coverage as per your needs.
The waiting period: Some plans have a waiting period for certain benefits, such as hospitalisation. This means that the baby will not be covered for these benefits until they have been insured for a certain period of time.
The insurance company: Review the services and products offered by the insurance company.
The actual premium will vary depending on the factors mentioned above. It is important to shop around and compare different plans before you buy newborn insurance. You can use online tools to compare plans and make this process easier.
Here are some additional tips for buying newborn insurance in India:
Start early: Buying newborn insurance as soon as possible is best, even before the baby is born. This will give you more time to compare different plans and find the best one for your needs.
Consider your budget: Selecting a health insurance plan requires factoring in your budget, as these plans can come with significant costs.
Read the fine print: Before you buy a plan, be sure to read the fine print carefully. This will help you understand the terms and conditions of the plan, such as the waiting period, the deductible, and the copayment.
Compare different plans: There is a wide variety of health insurance plans to choose from, making it crucial to compare these options before making a purchase. This step will assist you in identifying the most suitable plan that aligns with both your requirements and financial considerations.
The Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular on insurance coverage for newborns. The circular, which was issued on October 18, 2022, prohibits insurance companies from imposing any waiting period for coverage of newborns for any health condition, including congenital anomalies. This means, newborns can be insured from the day they are born, without having to wait for a certain period of time before they are covered under health insurance.
The circular also clarifies that the prohibition on waiting period for newborns applies to all health insurance policies, including Family-floater Health Insurance Policies, Individual Health Insurance Policies, and Group Health Insurance policies. This is a welcome move by IRDAI, as it will help to ensure that all newborns have health insurance coverage, irrespective of their health condition. It reduces the financial burden on parents, who may have to pay for expensive medical treatment for their newborns.
If you want to buy health insurance for your newborn, it is important to check with the insurance company to make sure that the policy complies with the IRDAI circular. You can also use online tools to compare different plans and find the one that best meets your needs.
Yes, insurance for newborns in India provides financial security and peace of mind in case of unforeseen health issues.
It's advisable to purchase insurance for your newborn as early as possible. This ensures your child benefits from lower premiums and extended coverage over time. Some policies even offer coverage from the day the child is born.
The premium amount is influenced by factors such as the chosen policy type, coverage amount, the child's age, and any optional riders or add-ons. It's important to strike a balance between affordable premiums and comprehensive coverage.
Yes, many insurance providers offer customisable policies with optional riders and add-ons. These allow you to tailor the coverage to meet your child's specific needs, providing a more personalised and effective insurance solution.
Yes, under Section 80C and Section 10(10D) of the Income Tax Act, the premium paid for newborn insurance policies is eligible for tax deductions under the prevailing tax regulations.
To compare different insurance policies, consider factors such as coverage, benefits, premium amounts, policy tenure, claim settlement history, and customer reviews. This thorough comparison ensures that you select the policy that aligns with your child's needs.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
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