There are many milestones in our human life. Most of them are material achievements that help us build a better future. However, certain occasions are simply priceless and one of them is the birth of your child. This is an occasion of pure joy that is going to last a lifetime. Along with the joy, this is also a lifetime addition of responsibilities, and one of the prime responsibilities is looking after the health of the child and providing timely medical aid whenever needed. We all know the importance of health insurance and safeguarding families against any unforeseen medical emergencies but not many parents know that they can take health insurance for their newborns too.
Given below are the details related to health insurance for newborns and the need for the same.
Why does one need a health insurance plan for newborns?
A Health emergency for a person can be at any stage and at the very onset of human life a medical emergency can be all the more grave. On such occasions, if the right medical assistance is not provided it can also be fatal. Also, neonatal treatments can be quite expensive and can further turn stress for new parents into a nightmare. Health insurance for newborns can take care of all such medical emergencies as well as not put any financial burden on new parents.
This health insurance for newborns also can be used to cover the prescribed vaccinations that usually go on till the age of 12.
What are the factors that need to be considered while opting for newborn health insurance?
Like any health insurance, a newborn health insurance plan also has to be evaluated on various factors before opting for one. Some of the key factors while considering newborn health insurance are,
- Scope of Coverage
The scope of coverage is one of the prime factors to be considered while taking newborn health insurance. There are some insurers who provide coverage for vaccinations and specified illnesses. Therefore, it is ideal for parents to first check the scope of coverage and the expenses that will be covered under the insurance plan.
- Policy exclusions
Every health insurance policy has a specific set of exclusions that are outside the purview of the claim. Therefore, before opting for a plan, it is important to understand and be fully aware of such exclusions to avoid any last-minute hassles at the time of claim settlements.
- Waiting period of the plan
Most health insurance plans for newborns come into effect after the infant is 90 days old. This means that even if the health insurance plan is taken before the birth or right after the birth of the child, it will have a waiting period of up to 90 days from the day the child is born. However, there are certain health insurance plans that come into effect immediately, right from day one of childbirth. Such plans may cost a bit higher but without this clause, the ultimate cost of medical attention needed, if any, will be quite higher when the policy is not in effect.
- Scope for customization of health plan
Health insurance plans should also have the scope to customize for availing maximum benefits even in the future when the child is grown up. This will help the insured party to modify the plan based on the needs of the family as per the changing times.
- Cashless coverage and co-payment clause
Another factor to consider is the availability of cashless treatment as well as any co-payment clause in the policy. Cashless treatment will allow the new parents immediate access to medical attention without any delay on account of arranging the finances for the same. A co-payment clause on the other hand is where the insurer and the insured party both certain portions of the total expenses for medical treatment. In such cases, it is important to understand the terms of such payments and the ratio of payments to be made by either party.
- Network of hospitals
A health insurance plan that covers maximum hospitals should be preferred by parents for their newborns. In times of emergency, parents will always approach the nearest hospital. At such times, a plan that provides maximum coverage for hospitals will prove beneficial.
What are the benefits of newborn health insurance plans?
Some of the prime benefits of getting health insurance plans for newborns are highlighted below.
- Comprehensive coverage
Right from the birth of the child till the time they are 5, there are a number of vaccinations that have to be given to them. The cumulative cost of these vaccines often runs into thousands. A health insurance plan helps in getting comprehensive coverage for such vaccination costs as well as all serious medical needs.
- Cashless facility
Health insurance plans often have the facility of cashless treatment. The insured party in such cases can get immediate medical attention without the need for any financial hassles. This provides huge peace of mind for the parents and they can concentrate better on the well-being of their child
- No claim bonus
A few health insurance plans also have the No Claim Bonus Clause. Under this clause, the insurer increases the coverage amount or reduces the premium if there is no claim generated during the specified period, say 2 years or 3 years. This additional coverage further helps the insured party meet the growing medical costs and not create a financial burden for them.
- Tax benefits
Like any other health insurance plan, these plans also provide the benefit of a tax deduction from the gross income. This dedication is under section 80D of the Income Tax Act and within the prescribed limits.
What are the drawbacks of not getting newborn health insurance plans?
Now that we have discussed the importance of getting health insurance plans for newborns, let us now see the drawbacks of not getting one.
- Excessive costs
The rising medical costs in our country are a glaring reality for the masses and the heat of the same was visibly seen in the peak covid waves in India. There were many families who lost their loved ones as they could not meet the cost of treatments. Health insurance plans act as a buffer to such rising medical costs so patients can get good medical attention at a fraction of costs.
- Lack of access to timely medical attention
Most health insurance plans come with tie-ups to multiple hospitals where the patients can get their medical needs solved without unnecessary hassles. This helps the patients get timely medical assistance which can be a crucial factor between life and death.
Health insurance plans for newborns are a relatively less popular concept in India but are gaining momentum due to increasing awareness. Parents can also plan for getting newborn health insurance plans by simply including their child in their existing health insurance plans if such provision is provided by the insurer.
Some of the documents needed for getting newborn health insurance plans are,
-Birth certificate of the child
-Maternity discharge papers
-Copy of cashless health card, if any
-Medical reports of the child
-Basic KYC of the parents
The minimum age of getting newborn health insurance plans offered by most insurers is 90 days after the birth of the child. However, there are also few insurers that provide newborn health insurance coverage right from day one of the birth of the child.
Health insurance for newborns can be claimed under section 80D as a tax deduction from the gross total income of the parent.
Health insurance plans can be modified and extended to provide coverage till the child is 18 years or 21 years as per the guidelines of the insurer.