The pressure to start a family can be really overwhelming, even if you are planning the whole thing for a long time. Now that women are choosing to delay motherhood, the rate of age-related pregnancy complications is increasing incessantly. Needless to say, all these issues have nudged them to opt for maternity health insurance now more than ever!
Since it is not a standalone insurance product, and rather offered as a part of a health insurance policy, there are some intricacies you should be aware of before availing one.
Also read: How to choose the best health insurance AMID coronavirus crisis
Top 10 mistakes to avoid while buying maternity health insurance policy
People mostly opt for a health insurance plan in a hurry and end up overlooking its terms and conditions. Especially when it comes to investing in maternity health insurance cover, there are some common mistakes people end up making. To reap the benefits of your insurance policy, make sure you avoid them:
Waiting to Buy Maternity Insurance Until Pregnancy
There is a perfect time for every investment, and a health insurance policy should not be an exception! Policyholders often opt for maternity insurance 2-3 months before being pregnant or during the time of pregnancy. This automatically makes them ineligible to claim the benefits.
Note that such insurance policies generally come with a waiting period of around 3-6 years, and after that, it comes into effect. So, it is always wise to start investing in them beforehand. So while planning your pregnancy along with other attributes of family planning, it is important to keep in mind to buy maternity health insurance cover which will keep the mother and the child financially covered.
Getting Hacked by Lower Premiums
This is another common mistake people tend to make mainly to reduce their financial liabilities. However, you must understand that investing in an insurance policy with a lower premium means getting lower coverage. Especially keeping the rate of health complications during pregnancy in mind, you should always purchase insurance plans with significant coverage.
In this regard, make sure to check the clauses associated with caesarean section delivery, recuperation, pre-natal and post-natal tests, etc. Calculate the premium amount and leverage the benefits. Analyse the premium amount through vigorous calculation procedures. To make calculation steps easier, use the medical insurance premium calculator tool so that you can pay your premiums on time & plan your finances accordingly.
Not Considering Medical History
Not disclosing your medical history to the insurer is never a good idea, as that will only result in the rejection of your application. Even if it gets approved initially, note that the insurance provider can decline all future claims at any point. In order to avoid that, make sure to mention all your pre-existing medical conditions while applying.
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Tax Benefit as the Sole Intention
Generally, individuals opting for any kind of health insurance premium can claim tax benefits as per Section 80 D of the Income Tax Act, 1961. However, a very important point to note here is that the maternity cover does not fall under this category. Such benefits can only be availed if you are planning to get into parenthood soon. If you are investing in one just for the sake of saving on tax, it will automatically make a negative impact.
Ignoring Policy Coverage for the Baby
A lot of maternity insurance plans do not provide baby coverage. This is one of the biggest loopholes people usually fail to observe and end up receiving a huge bill right after the delivery. This is why you must purchase such insurance plans from reputed insurers so that you get full financial coverage for both the mother and the baby up until a period of time.
Lack of Understanding Health Insurance and Maternity Insurance
Insurance providers often try to convince people by saying that opting for health insurance will get them all the benefits that a maternity cover possesses. In reality, there is a considerable amount of difference between these two types. While opting for a general health insurance scheme, the coverage for all the complications arising during pregnancy is often not provided to policyholders.
On the other hand, a maternity-specific insurance scheme is meant to save you from all the hassles during pregnancy and offer maximum benefits.
Not Buying Maternity Riders
Maternity riders are usually offered as an add-on or additional rider with your basic health insurance. It allows extensive coverage for expenses that occur during childbirth. Since these insurance policies should be availed beforehand, having proper planning is essential to manage your finances better. No matter how convenient a maternity rider seems in the beginning, it will eventually become an unwanted financial burden. All the exclusions and inclusions are generally not mentioned properly in most of the health insurance fine prints. So, we haver made it easy for you with providing authentic info about the coverages under maternity riders:
• What is included in maternity riders?
• Normal or cesarean delivery
• Pre-natal and post-natal expenses
• Vaccination costs of the newborn baby for the first year
• Other expenses related to post-delivery care
• Pre-hospitalization and post-hospitalisation expenses
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Lack of Research on the Product
Before you make such investments, it is extremely important to research the policy and make a decision based on your requirement. However, the requirements usually change with time. Therefore, it is essential to assess certain factors like the insurer's claim settlement ratio, list of network hospitals, incurred claim ratio, number of policies issues, etc., before going for it.
Going for a Minimum Coverage
While availing of any insurance scheme, people usually analyse all about the premium amount as it tends to get quite expensive. To keep their financial liabilities in control, they often opt for policies with lower premium amounts which automatically leads to sub-optimal coverage.
You need to keep in mind that the extent of the coverage, waiting period, flexibility, etc., are some crucial aspects you need to pay heed to while choosing a maternity cover. So, instead of focusing on the premium amount, you must take them into consideration to maximize the benefits.
Not Comparing Coverages Across Insurers
From the coverage amount to the waiting period, clauses to exclusions, everything varies across different insurance providers. Based on your requirements, choose an insurer that is offering you the highest financial coverage along with useful facilities.
With access to internet facilities, finding insurance schemes online has become pretty easier. However, with so many options available, people often end up going for the wrong scheme without scrutinising the fine print of the policy. To avoid inconveniences, make sure to conduct a careful analysis of the available health insurance policies with maternity cover and choose accordingly.