Starter Guide to Financial Planning
The Usefulness Of Maternity Insurance
You are expecting and it is a few months away till the little one arrives. On the other hand, all that you want is that your future child is healthy and both of you will make it through the delivery.
Maternity insurance comes into the picture when things do not go smoothly. Scroll further and you will discover the utmost importance of maternity insurance.
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Introduction of maternity insurance
After nine months of pregnancy, you will witness the birth of your child. He or she is healthy and everything is fine.
On the flip side, things can go south upon the delivery or even before it. Apart from the emotional downturn of something bad happening, you might need to fork out extra cash to rectify the situation.
With maternity insurance, it can compensate for the financial downturn of the unfortunate event.
Scope of benefits
Maternity insurance normally covers:
Mother’s benefit
- Death
- Pregnancy Complications
- Daily hospitalization benefit
Child’s benefit
- Death
- Congenital diseases
- Daily hospitalization benefit
These are just general benefits that most maternity insurance plans provide.
There will be a sum assured attached to the policy. The minimal sum assured will at $5,000. And the occurrence of any of the insured events, the sum assured will be paid out.
But is $5,000 enough to cover, stillbirth?
Stillbirth is quite a common pregnancy complication that happens and the cost of removing the fetus will really depend on the hospital that you go to.
Nonetheless, we are not comparing the price range here.
If $5,000 is not enough, getting a higher sum assured may solve the issue. But nonetheless, if you have your own private health insurance (shield plans), you might not need to worry about that.
Most private health insurance does cover pregnancy complication. Which means they will cover the cost of removing which is inside the allowable claimable hospital bills will be covered under the private health insurance.
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Then why would you still need maternity insurance?
The benefits of the maternity insurance are not that huge but nevertheless, any money that is given to you would be useful.
If your spouse is self-employed, the daily hospitalization can help in recovering their own daily income and also be there for you in times of need.
The pregnancy complication benefit would be useful if you do not really have full coverage on your own private health insurance. If you do need to co-pay your hospital bills, you would have that pregnancy complication benefit to pay for it.
Furthermore, the new private health insurance would no longer cover 100% of your hospital bill. You would need to fork out a co-payment of the hospital bill.
Lastly, the congenital benefit will help with the recovery process of your child.
It is not much, but will certainly lighten some part of your financial obligations. Reduces the money that comes out of your own wallet.
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Get it as long as you can afford it
Do you need it? It is still questionable as different people have different financial situations.
Regardless of the situation, it is something that will be useful when things go sour during your pregnancy or delivery.
It will be best if you did your own survey and find which company would be the best for you. Different insurers have different terms in order for you to get maternity insurance coverage.
On the other hand, having someone to do it for you would be a better alternative. You can focus on delivering the baby and the independent financial adviser can help in finding the best plan that fits your needs.
Hope that this article was useful. Do share it with your family and friends. Till next time.
Disclaimer:
I am a financial adviser but I am not your financial adviser. Therefore, what is posted on this website, are my opinions and NOT to be taken as financial advice. Information provided might be relevant at this period of time but may be irrelevant due to alterations to rules, regulations or policies. The information provided is true to the best of my knowledge, but there maybe omissions, errors or mistakes.
