Financial Planning Before Having a Baby – Consider Buying an Insurance

You can consider insurance options such as life plans. Most importantly, parents can definitely plan ahead and find suitable health coverage that especially covers pregnancy expenses, which can again be quite high. The better you plan, the lesser chances of you being worried about your bank balances while in such a thrilling and important phase of your life.

[Read: A Glance At Baby Costs]

Financial Planning Tips Before Having a Baby

Foremost, it is crucial to do financial planning for pregnancy reasonably. If you are sure that you cannot handle the expenses right now, wait for a few more years to bring the baby into the world. Plan well in advance. This would require excellent communication and understanding between partners, which is totally easily achievable!

• In fact, you should start saving in a separate ‘baby fund’, if possible right from when you get engaged!
• Since you are not married yet, you will not be able to subscribe to health insurance coverage or a life-term plan. Nevertheless, the money both of you set aside now will always come in handy when you are married and planning a baby.
• Actually, depending on a simple ‘savings account’ for the pregnancy expenditure can be better than the formal complications of an insurance plan, if you think it.
• Insurances are savings systems only, but with different complex conditions to retrieve the money.
• Your insurance provider is not paying the money it needs from its own pocket. It is your money only!
• You may not benefit from the tax deductions, investments, and all that by a simple savings account, but it is simpler on all counts.
• All you need is the fund to manage pregnancy, and it is all there, rightly waiting in your mutual account.
• Buying an established insurance product is actually much psychological because quite naturally you feel safe when an established financial service promises to cover all the expenses.
• The same emotional benefits can also be obtained in the mutual account, minus the hassles of paying timely premiums and covering additional formalities. Besides, joint sharing accounts also grow to bond and sharing between parents.

Obviously, the decision is always up to you. The above suggestion only attempts to provide a simplistic view of the situation, helping parents take an informed decision.

[Read: Financial Planning A Must]

Buying Family Health Insurance

Health insurance plans are most commonly chosen by couples, soon after their marriage usually when they want it to cover pregnancy. Several providers offer maternity insurance, so you will have to compare the benefits and choose the most suitable plan with a range of benefits for you and your family.

The usual coverage areas include:

1. Hospitalization

Do confirm whether the terms and conditions are comprehensive in including everything from the cost of medicines, doctor visits, anesthetist, surgeon fees, room rent, boarding charges, and nurse fees.

2. Transportation

Ambulance charges for emergency transportation.

3. Pre Hospitalization Expenses

Check the time allowed in a pre-hospitalization clause.

4. Post Hospitalization Expenses

Look up the limit specified in the post duration.

5. Safe Delivery and New Born Cover

This clause should also cover potential pregnancy complications.

6. Automatic Coverage For the New Born

Check the term period, as always.

7. Other Areas covered

Check whether Medical diagnosis costs and Pre-existing illness cost all are covered by the insurance.

Health plans such as these are eligible for tax exemptions under Section 80D of the Income Tax Act. Always verify the basic aspects such as cashless hospitalization, availability of in-house claim settlement (no third-party administrator), extensive medical network with good facilities, and competent customer support staff.

Buying a Life Insurance Plan

The father usually chooses the life insurance plan as a long-term assurance of the child’s safe future, even when he is not around by an unfortunate and untimely demise. No one can predict life, and you should always plan ahead to make it ultimately safe for the people who love you. Even after your unwanted demise, your absence should not be a hindrance to the happy life of your family.

This is totally the biggest responsibility a man can take! You can definitely subscribe to a good plan before having the baby. In that way, your child will be automatically included in the safety net right from the moment he is born. Look around and shop for the best life plan from the hundreds of options available.

Read Also: Unborn Baby Life Insurance

FAQ’s

1. What Happens With Insurance When You Have A Baby?

Having your own health insurance means that both you and your newborn are covered from day one. Pregnancy costs are covered by all major medical insurance policies today. The phases of pregnancy are covered, from prenatal care to delivery to recovery to caring for the infant.

2. How Does Insurance Work When You Get Pregnant?

Maternity insurance pays for all of your delivery costs up to a certain limit that has already been set. The coverage is good for both regular and C-section births.