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What Is Maternity Insurance And Should Expecting Mothers Purchase Them?

Maternity insurance covers both pregnancy complications, which affects the mother, and congenital illness, which affects the child.

 

With the all the SG50 perks this year enticing married couples to have babies, we have (finally) seen an increase in the birthrate in Singapore.

Previously, we wrote about how you could maximise the baby bonus cash gift given by the government to you and your child. While researching on that, we chanced upon an insurance product that is not commonly discussed about.

Maternity Insurance.

What Is Maternity Insurance?

Maternity Insurance is a type of insurance policy that covers unexpected complications arising from pregnancy, which could affect either mother or child. The policy provides a one-time pay out to help offset the additional medical cost, which may be incurred, due to such complications.

It is quite similar to travel insurance. You pay a one-time fee for the plan and thereafter, hope never to have to claim on it.

Coverage Provided

Coverage can be divided into two main categories. You have pregnancy complications, which affects the mother, and congenital illnesses, which affects the child.

Pregnancy Complications

The policy would have a list of pregnancy complications that is covered by it. Common complications include Abruptio Placentae, Amniotic Fluid Embolism, Fatty Liver of Pregnancy and Postpartum Haemorrhage requiring Hysterectomy.

We are not going to pretend like we understand what these medical terms mean. Just know that with the exception of 1 or 2 differences, most policies would have a pretty similar list of about 8 to 10 complications.

Pay out for these complications are pretty straightforward. If the mother were to be diagnosed with any of these complications, there would be a one-time payout of $5,000 (if you opt for the basic plan).

Congenital Illnesses:

Congenital illnesses that affect the child are covered in the policy. Once again, most policies would have a common list of 17-18 illnesses included. Coverage is provided for the child up to the age of 3.

Similar to pregnancy complications, if the child is diagnosed with any of the illnesses, there would be a one-time payout of $5,000.

Other Coverages

There are other coverages included as well. Hospital care benefit, which pays $100 per day, are provided if there is any hospitalisation for either the mother or the child due to the complications or illnesses.

In the unfortunate event of death, a one-time payout of $5,000 will be given.

All in all, these other coverages are nothing much to shout about and are just small add-ons.

Pure Maternity Protection Plan Vs Bundled Products

At this point, we like to highlight the fact that while most insurance companies would claim to distribute their own maternity insurance plans, the majority of these companies would have their policies tag along to an Investment-Linked Policy (ILP) which you also need to buy.

And if you are a regular reader of DollarsAndSense.sg, you will know our views on ILP.

Read Also: The Ugly Truths Of Investment Linked Policies

From what we understand, OCBC’s MaxMaternity Care appears to be the only product in the market currently that provides pure maternity protection. You can pay a one-time premium for the maternity coverage without needing to buy an additional ILP or any other main plans.

The price for the basic plan starts from $443 for mothers who are 30 and below. You can also opt for more coverage at a higher cost. Older mothers will have to pay more.

We like this plan because it is easy to understand. Like travel insurance, you decide for yourself whether you want the coverage or not, without having to commit to another long-term policy.

Do you think a maternity insurance plan is important? Share with us your thoughts on Facebook.

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