Maternity Insurance: Coverage, Costs, Product Comparisons

What medical expenses does maternity insurance cover for pregnant women? Why do expectant mothers need it? Bowtie will introduce the coverage and premium costs of maternity insurance and share three key points for comparing products.

Key Points for Comparing Maternity Insurance

1. Is the Coverage for Pregnant Women Sufficient?

Before purchasing, ensure the policy’s coverage for pregnancy complications is sufficient. Review the specific complications covered and the terms carefully. Additionally, if a pregnant woman experiences complications before or after childbirth, she may require observation and treatment, making the policy’s hospitalization coverage and benefit limits equally important to consider.

2. Pay Attention to the Waiting Period

Most maternity insurance policies impose a waiting period of 9 to 18 months for delivery and pregnancy complication coverage. Expenses incurred during this period are not claimable. As a result, purchasing a policy after becoming pregnant may not be the most effective strategy.

3. Does the Policy Cover Newborn Babies?

Some maternity insurance policies offer specific medical coverage for the insured’s or their spouse’s newborns or allow adding the newborn to an existing health insurance plan. Compare the policy terms based on your personal needs before deciding.

Comparing Maternity Insurance Coverage and Premiums

Below is a comparison of three insurance plans available in the market that cover pregnancy complications and/or natural delivery and cesarean sections. Premiums are based on a 30-year-old non-smoking woman as a reference.

Which plan is the best? At first glance, more coverage seems preferable, especially if it includes natural delivery or non-medically necessary cesarean sections.

However, there’s no such thing as a free lunch. Let’s break it down.

From the table, Insurance Company A offers the highest coverage, with up to $110,000 for prenatal checkups, but its one-year waiting period means you’d need to pay two years’ premiums—over $130,000—to access benefits. 

In contrast, Insurance Company B provides slightly less coverage with the same waiting period but at nearly half the premium cost. 

Meanwhile, Insurance Company C covers only pregnancy complications, yet its premium is the lowest, with two years’ premiums totaling less than $30,000—roughly 20% of Company A’s plan. 

Ultimately, the best choice depends on balancing premium costs, available coverage, and your personal needs.

Planning Medical Coverage for Newborns

Maternity insurance may have specific limitations or incomplete coverage for newborns, so parents might consider purchasing additional medical insurance for their babies.

The Voluntary Health Insurance Scheme (VHIS) accepts newborns as young as 15 days old, and premiums qualify for tax deductions. For example, a 0-year-old male and female infant insured under the Bowtie VHIS Flexi Plan (Regular) would pay monthly premiums of just $344 and $324, respectively.

After childbirth, insured mothers can also switch to a VHIS plan without maternity coverage to reduce premium costs while enjoying tax benefits.