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Maternity Insurance Cover not a Good Investment



High premiums and long waiting periods outweigh the benefits of such plans.
 
Women are choosing to become mothers late.

According to health insurance companies, over the last one year, the average maternity age has increased from 26-27 years to 32-33 years. Increased age has also given rise to complications during pregnancies. To address maternity related health concerns, a growing number of women are opting for health insurance plans that also cover maternity expenses.

However, health policies that come with a maternity cover are substantially costlier. A health plan with a cover of `3 lakh for a 35-year old female will normally cost `3,000-4,000 a year. But if the same cover includes maternity expenses, the premium more than doubles to `8,000-9,000 a year.

Should you buy?

For those whose employer-provided insurance covers maternity, opting for an individual health plan for an additional maternity cover may not be the best idea.Even for women who are not working, buying a health insurance policy that covers maternity expenses is not a good option. The high premium coupled with the long waiting period that policies with a maternity cover come with, diminishes their effectiveness. For a benefit of `25,000, buying a `3 lakh health policy, charging an annual premium of `8,000-9,000, with a 3-4 years waiting period, doesn't make sense. If you do not have health insurance, you must buy one, but its best to not opt for a high-premium policy that comes with a maternity cover. The money you save on the premium may be put to better use in building a cor pus for an emergency fund.

If you must...

If you still feel you need health insurance that covers maternity expenses, then it is best that you buy it at an early age. This will take care of the long waiting period, which, for some policies, could extend up to six years. A plan offering maternity benefit is worth buying at the time of one's wedding because most couples plan a child only after 3-4 years.

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