Maternity, Insights | 13 December 2020
Should I get maternity plan? Is this a question and decision that is bothering you especially if you are first-time parents? Are you confused by the types of plans available in the market and different opinions from different people? Then this article will probably be useful to help you to decide and allow you to understand more about maternity plan before making any decision as we will be sharing on the WIWO (What, Is it important, When, Options) of maternity plans
What is Maternity Insurance AKA Pre Natal Insurance?
There is a growth in trend of young parents googling about plans the moment the little bump starts showing and the first few plans that appear is often Maternity Insurance. This is because Maternity Insurance is the only few plans that young parents are able to get for themselves and the baby even before he or she is born.
As the name says it, Maternity Plan is a Single Premium insurance plan that provides coverage for the mummy and baby during the pregnancy, delivery and even for years after the delivery (for the baby). It covers mainly complications from the pregnancy and congenital illnesses.
Is Maternity Insurance Necessary or Important?
The main purpose of Maternity Insurance is not to cover your delivery charges and hospitalization bill and it is to provide additional coverage specifically for pregnancy complications and congenital illnesses and to be honest the coverage for maternity insurance is not as much if we were to compare with other life insurance whereby coverage is at least around 50k-300k. For most maternity insurance in the market the coverage ranges from 5k-10k, and hospital cash incentive of $50-$100 per day only.
As a Family Planning Specialist, I usually tell my client that their focus when it comes to deciding on maternity plan shouldn’t be on the coverage of the plan but more on what comes with it or after that which is the guaranteed insurance for their newborn.
Guaranteed Insurance Benefits (GIB) for the new born should be the gist of the maternity plan as it allows parents to get an insurance plan for their newborn without undergoing medical underwriting (i.e insurance company will have to issue an insurance policy under the instruction of the parents even though the child has any medical conditions), and this is how you kick start your baby’s life.
When Should I Get It?
For some companies, you may get it as early as you are into your 13th week of pregnancy to as late as 40th week of your pregnancy. If you are looking at this, we strongly encourage parents to get it as early as possible as more checks are done towards the later stage of your pregnancy and certain findings may cause your application to be declined, e.g Gestational Diabetes.
If you’re late to the game, usually I’ll check with them on their health status of both the mummy and baby and decide if it’s still worth it, as the plan are not charged on a pro ration basis. On the positive side the baby also enjoys a longer coverage period as coverage will be for three years from the start of the policy.
Options I have?
Generally, there are 2 kinds of maternity insurance offered by different companies, standalone or bundle.
Standalone policy is ideal for parents who can’t decide on the type of future plans for their newborn and will like to have coverage for the pregnancy and any congenital illnesses first and decides when the baby is born. By doing this they will still get to enjoy the GIB for their child as most companies offering standalone maternity plan are still offering this benefit to their clients, some even extend this to both mummy and baby, which means even the mummy is able to get a protection plan without medical underwriting.
Companies offering standalone maternity plan may even offer premium vouchers to parents which they can utilize when they decide to get other plans when the baby is born.
Bundle plans are more commonly offered by most companies these few years. This is usually bundled with a whole life plan or investment link plan. By getting this plan, the plan will be hold on behalf of the baby under the name of the mother till the baby is born and the parents will have an option to transfer the life assured to the baby usually within 90 days from the birth of the baby, without medical underwriting and this is also known as the GIB feature. This is ideal for parents who have made up their mind on the plans and company which they will like to get from for the baby and comfortable doing so because after all the plan that is bundled is a long-term commitment.
FAQ:
Q: Doesn’t Medishield Life or Integrated Shield Plan covers pregnancy complication and congenital illnesses?
A: Yes, Medishield Life and integrated shield plan do cover the mentioned above however it’s on a reimbursement basis and only on your hospitalization bills. Coverage may varies from company to company. Hence a maternity insurance acts as a good supplement where lumpsum cash will be received.
Q: Can I hold 2 maternity plans?|
A: Yes, you can but we do not encourage to do so as it doesn’t make economic sense.
Q: What is Policy Term for Mummy and Baby?
A: Typically for mummy is 90 days after delivery date as any complication would have arise during this period. As for baby most company is offering a 3 years or 6 years coverage depending on the type of plans that is chosen. The reason is congenital illnesses may not be discovered within a short period of time after the delivery and it provides additional coverage like hospital cash incentive for HDU or ICU for certain illnesses.