Things to Consider When Buying Health Insurance for a Newborn

At a Glance

1. Introduction
2. Why is Health Insurance for a Newborn Essential?
3. Factors to Consider When Buying Health Insurance for a Newborn
4. How to Apply for Health Insurance for a Newborn
5. Comparison of Health Insurance Plans for Newborns
6. Conclusion 

Introduction

Health insurance for a newborn is essential to provide early medical attention and financial protection against sudden health issues that the child might face. While buying a plan, aspects like benefits of the cover, premium amount, network of hospitals, and waiting period need to be weighed. 

Newborn babies are at risk for a range of infections, congenital abnormalities, and premature birth complications that might need even long durations of treatment. The expenses incurred in the Neonatal Intensive Care Unit (NICU) in India for the one hundred cases would range from ₹50,000 to ₹5,00,000, depending on the nature of the case. Without sufficient health coverage, these expenses might haunt the new parents financially.

Finding the right plan can be a challenging process for parents who are already dealing with the new experience of parenthood. This guide will help you understand what to look for before buying newborn health insurance, the application process, and introduce you to the providers with the best offers.

Why is Health Insurance for a Newborn Essential?

Before delving into specific factors, it is important to understand why only Indian-born babies are important for insurance for newborns: 

• High Medical Expenses: Even minor ailments like jaundice, infections, or colic can require hospitalization and medical supervision.
   
• Preventive Care: Immunizations, routine check-ups, and health assessments are needed to protect the newborn's health.
   
• Congenital Disorders: Medically, some babies are born with defects that need long-term treatment.
   
• Security: Unplanned expenditure on medical treatment can upset family budgeting. Insurance can ease such a burden. 

Factors to Consider When Buying Health Insurance for a Newborn

Ensuring that the baby is properly covered by health insurance is important for his health and well-being and financial safety. In choosing a policy, much more important factors than that need to be considered to get good comprehensive coverage for medical expenses, hospitalization, vaccination, and any unforeseen health conditions. Below are the figuring facets before buying health insurance for a newborn.

1. Coverage for Newborn-Specific Medical Expenses

Newborns frequently demand super-specialist healthcare, which paves the way for huge bills. Health insurance must, therefore, help cover the following basic newborn medical needs:

• NICU Expenses: Premature or ill infants often need NICU services which are usually associated with high cost.
   
• Congenital Defect Coverage: Some newborns are born with congenital defects, for which treatment needs to be started in early infancy or continued for years. Ensure that the policy covers all these defects.
   
• Vaccination Expenses: Regular immunization is crucial in preventive health measures to keep the baby healthy. Some policies include vaccinations in their preventive health benefit measures.

2. Policy Inclusion Criteria

Not every health insurance policy automatically covers newborns from the moment of birth. Some policies may cover the newborn only under the mother's maternity coverage for a certain period of time such as 90 days after which time, parents must either: 

• Buy a separate health insurance policy for the newborn. 
• Add the newborn to an existing family floater plan to ensure continued coverage. 

Checking the adequacy beforehand will eliminate gaps in coverage and guarantee uninterrupted medical benefits for your child.

3. Waiting Period and Pre-Existing Conditions

Certain conditions or treatments under health insurance policies may require waiting periods. Newborn coverage is best with a policy that has the least or no waiting period. 

• Some insurers have a 30-day waiting period or extend it up to 90 days for a given medical condition. 
   
• Shorter waiting periods guarantee that newborns receive immediate medical attention before a financial burden is placed on parents. 
   
• If the child is said to have a pre-existing medical condition, some insurers will delay or restrict cover, so those terms are worth checking.

4. Network Hospitals and Cashless Treatment

A large network of hospitals covered under the insurance provides easy access for parents to avail of medical care. Cashless hospitalization is a handy feature that allows direct billing to the hospital by the insurer without any requirement of upfront payments. 

• Choose a policy covering hospitals located near your home so that emergency care can be accessed easily. 
   
• Cashless treatment lightens the burden of financing during hospital stays.
   
• Some hospitals might deny cashless features, so it is prudent to check in case the insurer has a reimbursement policy.

5. Claim Settlement Ratio

A smooth process for claims is essential in medical emergencies. The CSR is the percentage of claims that an insurer has settled successfully. 

• For an insurer with a CSR above 90%, it is likely to approve claims. 
   
• Top insurers like HDFC ERGO, ICICI Lombard, and OneAssure have a claim settlement ratio above 90%, thus ensuring that claims will always be approved in a timely and hassle-free manner. 
   
• Finding customer reviews and information on claims processes will help in determining an insurer's trustworthiness. 

If you wish for a stress-free claims experience, you should choose companies that have a great deal of experience in settling claims.

6. Premiums and Sum Assured

The premium that is to be paid and the sum assured to be received have a significant impact on the selection of the health insurance plan.

• Some of the plans may have a lower premium but exclude the newborn coverage which may be essential.
   
• In the case of larger amounts assured for any medical expenses, they provide greater financial protection from more serious affairs.
   
• With comparison, one may find the best compromise between costs involved and the benefits received.

It is imperative to understand the relationship in premium costs, sum assured, and coverage benefits so that one can make an informed decision.

How to Apply for Health Insurance for a Newborn

The health insurance facility for a newborn is the crucial step to secure the medical needs of the baby from birth. The insurance process involves relatively simple steps: check for pre-existing coverage, select the appropriate plan, and fill in the required documentation. Below is a step-by-step detailed guide to help you with applying for health insurance for your newborn with ease.

Check Existing Health Policies

Before buying a fresh health insurance policy, ensure that you check if your present family or maternity health insurance covers newborns. Many insurers automatically include a newborn under maternal maternity cover for a short period, ranging from 30 to 90 days after the birth of the baby. If your policy has this provision, your child might enjoy temporary coverage, requiring you to only extend or upgrade the policy after that. However, if your existing plan has no provision for covering newborns, you will have to look for a separate policy or a floater plan for the baby.

Choose the Right Insurance Plan

When evaluating plans for your newborn, consider comparing different policies for appropriate coverage. Find plans that offer maximum benefits concerning newborns covering hospitalization, preventing the necessity of hospitalization for the newborn, vaccinations, neonatal care, congenital disease coverage, and cashless hospitalization options. Choose another plan with a shorter waiting period so that it can be useful whenever there is newborn-related coverage immediately after birth. 

Gather Necessary Documents

When a health insurance plan is chosen, you will be required to furnish documents so that the application can continue. These generally include:

• Birth Certificate of the Newborn - To provide proof of birth details of the child.
   
• Parent's Identity Proof - Aadhar Card, PAN Card, or Passport proof of identity.
   
• Medical Records - If required. Some insurers may require medical reports, particularly in cases where the newborn has any pre-existing conditions or congenital disorders.

Having all the required documents in place helps accelerate the process and prevents unnecessary delays.

Complete the Application and Payment

Collect all the required documents and apply using the application form given by the insurance company. Most insurance companies have both online and offline applications. Enter every detail, confirm the correctness, and attach the required documents carefully. After completing your application, make the relevant payment towards the insurance premium to start the policy. Some insurance companies provide the flexibility of paying premiums at annual or monthly intervals, so choose a plan that suits your finances best.

Receive Policy Issuance and Confirmation

The application and the payment through the insurance company will be processed first and thereafter the request will be reviewed and approved. Once such an approval is given, you will be issued a policy document that certifies your newborn's health coverage. The document will include policy terms, coverage benefits, exclusions, claim procedures, and renewal information. So, keep this document in a safe place and also read the claim procedure to avoid complications in case of medical emergencies.

Comparison of Health Insurance Plans for Newborns

Let's complete a comparative study to investigate health insurance plans for a newborn:

Conclusion 

Choosing the right health insurance for a newborn is very important because it influences the child's and parents’ physical and financial well-being. Coverage, waiting period, exclusions, claim settlement ratio, and affordability should be considered before the purchase.

OneAssure has assembled well-curated newborn insurance plans that offer a gamut of benefits, speedy claim settlements, and cashless hospitalization. Secure your newborn's health today, visit OneAssure to find the best insurance plans for peace of mind and a healthy future for your baby!