Is maternity insurance a must-have for all expecting mothers?

What is maternity insurance?

Maternity insurance is a single premium term insurance that provides coverage for pregnancy complications. This means that expecting mothers will only be required to pay a one-off premium for a three year policy term.

In a maternity insurance plan, coverage is given to both the mother and baby. This includes coverage during pregnancy and for a specified period after birth. However, do note that maternity insurance does not cover the cost of your delivery or normal hospitalisation bills. Instead, maternity insurance is intended to cover pregnancy complications and congenital illnesses. A daily hospitalisation cash benefit may also be given when the mother or child is hospitalised. Maternity plans will usually also include a basic death coverage.

There are two types of pay-outs that you will be able to receive from a maternity insurance: a lump sum payment as well as daily cash in the event of hospitalisation. Expecting mothers can purchase a maternity insurance from 13 weeks onwards.

MediShield Life and Integrated Shield Plans for pregnancy complications

While both MediShield Life and integrated shield plans provides coverage for pregnancy complications, this is limited to only coverage for specified pregnancy complications. Any expenses for unlisted pregnancy complications will not be covered.

Singapore Citizens are automatically covered by MediShield Life from birth, regardless of health conditions. However, this will only cover specified pregnancy complications. In the event that your newborn requires additional treatments, these expenses would then have to come out of your own pocket. Do also note that integrated shield plans will only protect the mother with no coverage given for the newborn.

(See "Disappointed with the new integrated shield riders? This is what we think")

Should you get maternity insurance? A maternity insurance plan may be useful if you find yourself relating to any of these three scenarios.

#1 Coverage against possible pregnancy complications or if you have a family history and/or condition that could cause pregnancy complications.

As explained, MediShield Life and Integrated Shield Plans are health insurance plans that only provides limited coverage for specified pregnancy complications. A maternity plan on the other hand, will provide a more comprehensive coverage for both you and your newborn. Moreover, a maternity plan offers lump sum pay-out unlike MediShield Life and Integrated Shield Plans that operates on a reimbursement basis. With this lump sum pay-out from a maternity plan, you are allowed the flexibility to arrange for treatments without being restricted by the requirements that MediShield Life and Integrated Shield Plans may have.

Additionally, if you have a family history or condition that could cause pregnancy complications, having a maternity insurance plan may offer you a peace of mind. Available for expecting mothers from 13 weeks onwards, a maternity plan also gives both you and your newborn additional hospital care benefits. This ensures that there is coverage should you have a pregnancy complication or require a longer observation period in the hospital.

(See "Best Personal Accident Insurance 2021")

#2 Worried about your child being born prematurely or requiring hospitalisation.

You may also consider getting a maternity plan if you are worried about your child having complications from a premature birth or requiring other hospital care. Some of such examples include admission into intensive care unit (ICU), and phototherapy or blood transfusion for severe neonatal jaundice. A maternity plan will also provide coverage in the event that your newborn has a congenital illness.

With maternity plans providing a lump sum pay-out, this gives you greater flexibility should you need to arrange for treatment or long term care expenses for your newborn. Additionally, as maternity insurance is meant to provide both the mother and child with coverage, having maternity insurance will complement your other health policies and make up for any limitations in coverage.

(See "How much should I be spending on insurance for my child?")

#3 A head start for your child's coverage. A maternity plan ensures that your child is guaranteed insurable even if he/she is born with a condition.

Lastly, a maternity plan gives you a head start in obtaining coverage for your child. If your newborn is unfortunately diagnosed with a condition upon birth, he/she may find it difficult to get insurance coverage in future. However, most maternity plans comes with the option to get your newborn insured without the need for any medical check-up or underwriting.

With a maternity plan, this guarantees your child’s insurability, ensuring that he/she has access to comprehensive coverage even if even if he/she is born with a medical condition. Do note that this option to get your newborn insured under a new plan must usually be done with a specific timeframe from birth (usually within 90 days).

(See "When Is Term Insurance Better For My Child?")

Maternity plans available on FSMOne:

Manulife ReadyMummy

NTUC Maternity 360

For more information on maternity insurance: Best Maternity Insurance Singapore 2021.

Maternity insurance is suitable if you are...

An expecting mother looking to secure coverage for your child before birth

Worried about pregnancy complications and would like coverage

Want to get guaranteed insurability for your child in the event that your child is born with any conditions

Concerned about congenital conditions or post-pregnancy complications for your child

Maternity insurance is not suitable for:

Wealth accumulation

Coverage against normal pregnancy expenses such as pre and post-natal check-ups, normal delivery, vaccinations, and ultrasounds

If you are before 13 weeks or after 36 weeks pregnant

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_{¹Source: https://www.moh.gov.sg/home/our-healthcare-system/medishield-life/what-is-medishield-life/what-medishield-life-benefits/serious-pregnancy-complications}