Do you really need baby or maternity insurance?
From my parenting talk with DBS NAV, this was the question that was asked several times and I don't think I had enough time for an elaborate answer. I thought it through and feel it would benefit more people if I explain why I did not buy maternity insurance here.
I am going to use PRUfirst gift as an example so that I can explain in details, not that I recommend Prudential over other insurance companies but because I have a close Prudential friend to clarify all the information.
First, we talk about the coverage for it:
1) The insured mother must be between 19 to 45 year own and between 18 to 32 weeks of pregnancy. Second trimester is usually the least risky part of pregnancy so it makes sense for the insurance business.
2) Only pregnancy complications are covered
Miscarriage, premature labor and birth, preeclampsia, oligohydramnios, gestational diabetes, ectopic pregnancy, placenta previa are some examples. These are all very severe conditions and may occur to less than 2% of the people. To reduce the risk, I keep myself healthy and am aware of my family history. Besides that, these pregnancy complications are all covered under Integrated Shield Plan.
3) Congenital diseases when born from birth to 2 years old
Some congenital disorders are cleft lip and cleft palate, cerebral palsy, fragile X syndrome, down syndrome, spina bifida, cystic fibrosis and heart conditions. Nowadays you have to do a compulsory OSCAR test to check for Down syndrome so that is the only disease that can be tested.
4) Mum is insured against death until baby's 3 years old
Honestly, the $5000 coverage is insufficient. I would suggest a term plan is much better for long term considerations. You can treat this plan as a short term Death policy and 'Critical' illness plan.
5) Can top up to buy PRUlink Enhanced Protector
Basically an ILP and I have blogged about my feelings about it before in this post. This is the part where you can get some surrender portion but do take note that the premiums will increase as your child aged.
Here are 3 points you should be aware:
1) Those common pregnancy problems - Not covered
I have a few friends who had to be admitted around week 30. They had some spotting and most likely it was due to overwork or exhaustion. As this condition was quite common, it was not severe enough to be considered pregnancy complications and so, not covered under the maternity insurance. One of my friends had signs for pre term labour at week 36 and have to rest in bed for 2 weeks. It is similarly not covered because it is after 32 weeks of pregnancy.
2) Hospitalisation expenses - Not covered
Which brings me to my second point. Even if my friends were warded, their hospitalisation expenses cannot be claimed under maternity or even Integrated Shield Plan. This is because in the policy, it is specifically stated that only those pregnancy complications and resulting admittance into hospital can be claimed. So, what's the point of maternity insurance in this case? For the daily payout of $100 a day. I used to think that Integrated Shield Plan can be used for all reasons when warded but apparently for pregnancy it is not applicable.
3) NICU - Nada!
This is the most hefty party of the bill and why many of my friends opted for government hospitals instead of private ones. NICU is tagged to the mother's ward class so if you are going for private hospitals, your baby's NICU charges would also be Ward A charges of more than $5k a day. Sorry, maternity insurance cannot help with this anyway.
My thoughts
To pay $300 for a 2% chance of pregnancy complications that I have similar coverage in my Integrated Shield Plan and to get death payout of only $5,000, I really don't think it's worth while. However, if you can afford it and have a family history of health issues, this maternity insurance might be useful to you. Alternatively, if you just want a peace of mind, you should definitely buy it.
Just be aware that not everything is covered.
__________________________________________________________________________________________________
Like me on Facebook to be updated on more #Familytalk posts and finances.
I am going to use PRUfirst gift as an example so that I can explain in details, not that I recommend Prudential over other insurance companies but because I have a close Prudential friend to clarify all the information.
First, we talk about the coverage for it:
1) The insured mother must be between 19 to 45 year own and between 18 to 32 weeks of pregnancy. Second trimester is usually the least risky part of pregnancy so it makes sense for the insurance business.
2) Only pregnancy complications are covered
Miscarriage, premature labor and birth, preeclampsia, oligohydramnios, gestational diabetes, ectopic pregnancy, placenta previa are some examples. These are all very severe conditions and may occur to less than 2% of the people. To reduce the risk, I keep myself healthy and am aware of my family history. Besides that, these pregnancy complications are all covered under Integrated Shield Plan.
3) Congenital diseases when born from birth to 2 years old
Some congenital disorders are cleft lip and cleft palate, cerebral palsy, fragile X syndrome, down syndrome, spina bifida, cystic fibrosis and heart conditions. Nowadays you have to do a compulsory OSCAR test to check for Down syndrome so that is the only disease that can be tested.
4) Mum is insured against death until baby's 3 years old
Honestly, the $5000 coverage is insufficient. I would suggest a term plan is much better for long term considerations. You can treat this plan as a short term Death policy and 'Critical' illness plan.
5) Can top up to buy PRUlink Enhanced Protector
Basically an ILP and I have blogged about my feelings about it before in this post. This is the part where you can get some surrender portion but do take note that the premiums will increase as your child aged.
Here are 3 points you should be aware:
1) Those common pregnancy problems - Not covered
I have a few friends who had to be admitted around week 30. They had some spotting and most likely it was due to overwork or exhaustion. As this condition was quite common, it was not severe enough to be considered pregnancy complications and so, not covered under the maternity insurance. One of my friends had signs for pre term labour at week 36 and have to rest in bed for 2 weeks. It is similarly not covered because it is after 32 weeks of pregnancy.
2) Hospitalisation expenses - Not covered
Which brings me to my second point. Even if my friends were warded, their hospitalisation expenses cannot be claimed under maternity or even Integrated Shield Plan. This is because in the policy, it is specifically stated that only those pregnancy complications and resulting admittance into hospital can be claimed. So, what's the point of maternity insurance in this case? For the daily payout of $100 a day. I used to think that Integrated Shield Plan can be used for all reasons when warded but apparently for pregnancy it is not applicable.
3) NICU - Nada!
This is the most hefty party of the bill and why many of my friends opted for government hospitals instead of private ones. NICU is tagged to the mother's ward class so if you are going for private hospitals, your baby's NICU charges would also be Ward A charges of more than $5k a day. Sorry, maternity insurance cannot help with this anyway.
My thoughts
To pay $300 for a 2% chance of pregnancy complications that I have similar coverage in my Integrated Shield Plan and to get death payout of only $5,000, I really don't think it's worth while. However, if you can afford it and have a family history of health issues, this maternity insurance might be useful to you. Alternatively, if you just want a peace of mind, you should definitely buy it.
Just be aware that not everything is covered.
__________________________________________________________________________________________________
Like me on Facebook to be updated on more #Familytalk posts and finances.
Jes
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Hi Jes,
ReplyDeleteThe only kind of maternity plan are those expat kind of hospitalisation plan. I think Liberty or something sells it. Everything, including NICU, will be covered there. Don't expect it to be cheap though. But I think it's worth to buy before one is pregnant, so that it is not a 'underlying condition'. Any insurance that doesn't cover NICU cost shouldn't be called maternity insurance.
Like you, I didn't buy too.
Hi LP,
DeleteOf course I remembered what you said! Don't think many people know about those expat kind of plans. Most of us only know those standard insurance companies.
Anyway, what do you mean to buy before one is pregnant? Can only buy from 18 weeks onwards ma. Or do you mean other insurance?
Hi Jes,
ReplyDeleteWould like to clarify a few things that maternity insurance cover. It's also for the child in between for NICU (ward 2) and above.
Its meant as a hedge for insurability for the baby too. (though I got AIA mum2baby protect and GE maternity, should have bought ntuc maternity insurance for additional coverage instead).
The insurability to me is more important since they are covered before birth. I do have a table on the benefits that I compiled across the board for my wife.
Hi Ethan,
DeleteHope I understand you correctly. The insurance does not cover the cost of NICU, one can only claim a daily payout which is fixed.
As for insurability, I feel that with routine check ups and a clean bill of health and family history, the probability of congenital diseases is greatly reduced. Since you have compiled the table, I am quite sure you are aware and have bought these policies with a peace of mind! Don't worry, there is no right or wrong answers here. Congratulations anyway! :)
Hi Jes,
ReplyDeleteThat one I mentioned regarding the expat kind of insurance, is actually a world wide hospitalization plan, which somehow covers NICU too. Hence, must buy before pregnant, not during pregnancy, haha
But it's damn expensive lah
Oh wah, this kind of expat insurance you also know! Not unexpected that the premiums are sky high then. Lucky both my daughters don't have the NICU part, if not really sian...
Delete