Health insurance cover is quite important because of the financial cover it provides at the times of any medical contingencies. This importance of health insurance becomes even more significant when it is in context with that of children. One of the major aspirations of every parent is to provide a healthy childhood for their kids. So, in addition to the costs, those are associated with educating your child and raising your child, another major area that should be financially secure is your child's health care.
Moreover, with the cost of medical facilities being extremely high and moving out of control every day, it is advisable to have child health insurance for your kids.
What is Child Health Insurance? What are the Benefits of Child Health Insurance?
Child Health Insurance is purchased by the families for the security of their children’s lives. Generally, Child Health Insurance Plans would cover a large range of diseases, injuries, and even annual health check-ups in many cases.
The major benefits which are obtained from Child Health Insurance in India are summarized as below:-
- Improvement in Well-being – The most important benefit you can obtain by the purchase of a Child Health Insurance Policy is an improvement in the overall well-being of your children. If you have Child Health Insurance, then it is quite likely that your children will be healthy as they would have the access to good quality healthcare facilities at the time of medical emergencies.
- Improvement in Learning – The learning level of your children is directly associated with the health of your children. So, if your children have adequate health insurance then they can have regular health check-ups and in turn, perform well in their academics.
- Economic Security – In today's world, the most important objective is economic security. If your children are healthy, then they are economically secure and would make a better contribution to society in the future.
What are the Types of Health Insurance Plans Available for Children?
The two different types of health insurance plans that are available for the children are:-
Family Floater Health Insurance Plans
Family Floater Health Insurance Plans are those health insurance plans which provide cover for the entire family. These health insurance plans are valid up to a period of 2 to 3 years based on the terms and conditions of the policy. In family floater health insurance plans, newborn babies up to 90 days can be added into the plan where coverage is provided starting from the stay at the hospital to vaccinations.
Based on the terms and conditions of the health insurance plans, newborn babies, toddlers, and teenagers up to the age of 20 to 25 can be covered. A separate health insurance policy would be purchased for the child when he meets the upper age limit.
Family Floater Health Insurance Plans are preferable as they have a lower premium, offer tax benefits, and also offer other discounts as well. Moreover, family floater health insurance plans are long-term plans and you would not have to bear the fluctuations in the cost due to policy renewal every year.
Individual Child Health Insurance Plans
The Individual Child Health Insurance Plans are designed specially for providing coverage to your kids under good health insurance. The complete sum insured is dedicated towards the treatment of your kids only as it is a standalone health insurance plan.
In addition to the coverage provided by these plans for hospitalisation, other expenses like the cost of ambulance services and expenses for lab tests are also covered under these individual health insurance plans.
Individual Child Health Insurance Plans are inexpensive as there are very low risks associated with the insurance of children. Moreover, various other discounts can be obtained such as the NCB (No Claim Bonus) by which there can be a waiver in the health insurance premium.
However, there are no standalone health insurance plans for kids, but if parents are covered, children can also be covered under the same plan.
Points to Consider While Selecting Child Health Insurance Plans
Some of the basic features of Child Health Insurance Plans which you must keep in your mind while purchasing Child Health Insurance Plans are:-
The Minimum Age for Coverage
In the case of individual child health insurance plans, the minor children who are of the age of 1 day can be easily provided coverage. This can be feasible by any one of the parents being included in the Family Floater Health Insurance Plan. The minimum age for the entry of a minor into a family floater health insurance plan is 1 day and can be 90 days too. However, there are some family floater health insurance plans which do not include maternity cover in them. In such cases, the minimum age at which a child can enter into the Family Floater Health Insurance Plan is 5 years.
Pro Tip:- If you are interested in including your newborn baby into your Family Floater Health Insurance Plan, you would have to inform your insurance provider within one week.
The Maximum Age Limit for the Children in Family Floater Plans
If you have dependent children, then these children can be included in the Family Floater plan up to the age of 21 years to 25 years. However, in the case of individual Child Health Insurance Plans, there tends to be no maximum limit on the age for covering your child.
Pro Tip:- In case, the child is not a minor at the time when your health insurance policy was purchased then you must opt for a separate health insurance plan for the child.
Coverage for Newborn Babies
One of the most important features associated with the Family Floater Health Insurance Plan is the coverage for newborn babies. Newborn babies live in a very safe environment within the mother's womb. Due to the sudden environmental changes, newborn babies are highly susceptible to various infections such as jaundice and other skin ailments. Hence, there must be proper health insurance plans for your neonate. In family floater health insurance plans, maternity coverage and insurance coverage for the newborn baby is an inbuilt feature.
Pro Tip:- These health insurance plans provide coverage from the day of birth of your baby till 90 days or till the policy renewal. Through the family floater health insurance plans, coverage for the delivery expenses, vaccinations for babies, and other facilities would also be availed. After the completion of 90 days, the newborn baby can be included in the Family Floater Health Insurance Plan on the payment of an extra insurance premium.
The major expenses which are covered under the Child Health Insurance Plans are the pre-hospitalisation expenses, hospitalisation expenses, post-hospitalisation expenses, etc. Some other additional benefits offered by the Child Health Insurance Plans are free annual health check-ups, daily cash benefits, coverage for expenses incurred in ambulance use, etc.
Mostly, Child Health Insurance Plans do not provide coverage for those expenses which would be incurred during the treatment of congenital defects among children.
Pro Tip:- You must consider and understand all the exclusions very carefully while selecting the Child Health Insurance Plan for your kids.
On the Family Floater Health Insurance Plans, you can health insurance claim a tax deduction of INR 25,000 on the premium paid for yourself, your spouse, and your children.
Selecting a Good Child Health Insurance Plan
Usually, it is advisable to opt for a Family Floater Health Insurance Plan as it would help provide health insurance for the members of the family and the children as well. Many additional benefits such as specialist consultation and health-related counselling can also be availed with the help of the Family Floater Health Insurance Plans.
Moreover, a health insurance plan with the feature of lifelong renewability must be chosen. If your kids are of the age of 5 years and above, then an individual Child Health Insurance Plan should be your choice. However, if your kids are below the age of 5 years then Family Floater Health Insurance Plan is the most suitable option. You must know in detail about the features, the coverage provided, and the exclusions of the health insurance plan which you are purchasing for your kids.
Hence, you must consider purchasing a Child Health Insurance Plan at a younger age for your kids. By this, your kids would be able to avail good quality medical facilities and would also ensure the overall well-being of your kids. Also, you should read the fine print of your policy document in detail while purchasing the Child Health Insurance Plan for your kids.