What is the Importance of Child Health Insurance?

From the moment your bundle of joy arrives into this world, you experience unparalleled happiness and, concurrently, an enormous feeling of responsibility. With great joy comes great responsibility, you as a parent need to provide for everything for your child with special care at least till such time that they become an adult. The rapidly increasing environmental pollution, adulterated food and today’s prevalent sedentary lifestyle and poor food habits result in children today being increasingly susceptible to health problems. Thus, compounded by the high cost of healthcare in India, makes an  increase urge  for the purchase of child health insurance.

This article speaks of the importance of buying health insurance for kids and some other related tips. Keep reading.

What is Child Health Insurance?

Health insurance for kids is a type of health insurance policy specially designed to cover their specific healthcare requirements. Like all health insurance policies, it plays a dual role by also ensuring your financial well-being and ultimately that of your child by monetarily supporting you when your child requires hospitalisation for any reason like illness or injuries. Such policies also pay for your child’s vaccination and clinical check-up expenses, if that is covered. 

You may normally purchase health insurance for your child at various stages of life, from medical insurance for newborns to till the age your child is 25.

Care Health Insurance offers Care Plus Youth Health Insurance with maternity and newborn health coverage as an add-on benefit. The policy can be purchased from the age of 5 years to the maximum age of 25 years for your child. The sum insured ranges from Rs 3 lakh  to Rs 25 lakh . Some of the unique features of this plan include day care treatment, coverage for advance technology methods, AYUSH treatment, OPD coverage, second opinion, NCB bonus unlimited automatic recharge, air ambulance etc. 

Why Should You Buy Child Health Insurance?

Purchasing a children's medical services health plan is useful for your child for the following reasons:

Prone to Injury

Young children are not careful and do not know how they should take care of themselves. Infants in their stages of learning to move and walk may get hurt easily. Children are thus overall injury-prone. Health insurance for children ensures that the cost of treatment for their injuries is covered by the health insurance company, and you can get the treatment done at the best facilities.

Weaker Immunity

Your child has weaker immunity than you, and they catch infections or get affected by diseases faster than we do. Your child's health insurance covers the often high expenses for the treatment owing to diseases.

More Exposure

Children are unmindful and do not observe precautions to avoid diseases and infections. They often do not follow the best health practices and fall ill more often.

Poor Lifestyle

How many of our children go out of the house to play in playgrounds or fields? This is a decreasing number and correspondingly, we see increasing screen time for children. Healthy eating habits are ditched with a preference for junk food over homemade food. All this is directly contributing to an increase in lifestyle diseases. Health insurance for kids covers the treatment of such diseases and conditions.

What does Child Health Insurance Include?

Policies providing health insurance for kids normally have the following inclusions:

In-Patient Hospitalisation

Expenses incurred on the treatment of your child in case of hospitalisation in excess of 24 hours are covered. This includes room rent, cost of ICU if applicable, nursing charges, cost of medicines, etc.

New-born Bay Cover

Medical insurance for newborns includes neonatal care expenses. This is often covered by the maternity benefit if purchased with the health insurance policy of the mother.

Day Care Treatment

With Care Health Insurance, we offer all day care treatment under Care Plus Youth Health Insurance up to SI, where the treatment doesn’t require 24 hours of hospitalisation. 

Pre and Post-Hospitalisation Expenses

You will get reimbursed for related expenses incurred 60 days prior and 90 days after the hospitalisation. The exact coverage is as per the terms and conditions of your child's health insurance policy.

OPD Treatment

Under Care Health Insurance Youth policy, the expenses of OPD consultations are covered up to ₹ 1500 for SI=5L and 7L, and ₹ 2500 for SI=10L & 25L.

Ambulance Charges

Expenses incurred on ambulance charges are reimbursed as per the limits mentioned in your child's health insurance policy.

Domiciliary Hospitalisation

In case the attending doctor prescribes treatment at home the same is covered.

Benefits Offered by a Child Health Insurance Policy

You should purchase a health insurance policy for your child to enjoy the following benefits:

• Comprehensive Medical Coverage: Health insurance for children covers your child for a vast range of expenses related to medical treatment such as vaccination, cost of hospitalisation, OPD consultations, and treatment of injuries caused by an accident and also often includes free periodical health check-up facilities.
• Financial Security: Health insurance for your child covers the expenses for any hospitalisation, thus safeguarding you financially and eventually providing your child with financial security.
• Treatment without Compromise: We all always wish to provide the best of everything to our children. However, healthcare in India is extremely expensive and is increasing at a dizzying rate. Purchasing a health insurance policy for your child ensures that you can afford the very best treatment for your child without any compromise.
• Cashless Hospitalisation: If you get your child treated in the network hospitals of your health insurance company, a list that normally encompasses the best hospitals, the bills will be settled directly by the insurer without you having to pay anything.
• Tax Deductions: Under the old tax regime, you will enjoy a maximum tax deduction of Rs 25,000 under Section 80D of the Income Tax Act, 1961.

How Do You Choose the Appropriate Child Health Insurance Policy?

You may follow the tips below to choose an appropriate health insurance policy for your child:

• Check for Sum Insured: Compare the sum insured offered by various policies with the requirement as calculated by you, keeping in mind your child’s health and the family health history of both parents. Match the same as well as you can. Under coverage will mean that you may have to pay out of pocket in the event of a claim, and buying an unnecessarily high sum insured will mean a high premium amount.
• Check the Policy Coverage: Check the coverage offered by the health insurance policy. It should offer coverage for common ailments and particular illnesses as per the health history of your family.
• Purchase New-born Baby Cover: Purchase an optional cover for newborn health coverage when you are planning to start your family. This will ensure that your baby has the protection of health insurance from Day 1.
• Understand the Exclusions in the Policy: There are certain exclusions in all health insurance policies for children. Go through and understand the exclusion list of the policies you have shortlisted so you are aware of what your child is not covered for.
• Purchase Appropriate Add-On Covers: Personalise your child health insurance policy by opting for suitable add-on riders. 
• Check the List of Network Hospitals: Go through the list of network hospitals of your health Insurance company. You need to have some hospitals situated near where you live as well as any other specialised hospitals or ones which you may prefer.

Did you know Care Health Insurance offers Care Joy – a policy specially designed for young couples who are starting a family? Care Joy offers newborn baby cover from Day 1 as well as the option to add your child to the regular policy from day 31. .

Common Mistakes While Purchasing a Child Health Policy

Please avoid the following mistakes that a lot of people make when purchasing health insurance for children. These seemingly innocuous mistakes make them pay heavily later:

• Opting for Low Sum Insured: This is usually to reduce the premium outflow. A policy with a sum insured lower than that required as per the estimated needs of your child may not prove to be enough in case of hospitalisation. The policy may then not cover the claim and you may end up having to pay from your pocket, or worse, compromising on the treatment of your child.
• Non-disclosure of Your Child’s Health Condition: Insurance is based on the principle of utmost good faith. A health insurance company issues your child’s policy on the assumption that you have disclosed all material facts. Hiding anything may result in the rejection of your claims or even the cancellation of the policy.
• Not Paying Attention to Co-Payment Clause: This is a mistake a lot of us are guilty of. While a higher co-pay does mean lower premiums, it also means that you will compulsorily need to pay a predetermined percentage of the claim amount, adversely impacting your savings. 
• Going Solely with Your Group Insurance Policy: You may choose to rely on the coverage provided by the group mediclaim policy provided by your employer. Do keep in mind that such policies have lower coverage and come with a lot of limits and sub-limits. This may not be sufficient to cover your child's healthcare expenses. It is wiser to supplement the coverage offered by the group mediclaim policy provided by your employer with a personal health insurance policy for your child.

Final Word!

While you enjoy the experience of parenthood, do also keep in mind your responsibilities towards your child. Purchase a health policy for your child as soon as possible to safeguard your child’s health and financial well-being.

>> Also Read: How to Buy the Best Health Insurance for Children?

Disclaimers: All plan features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.