What Is a Child Insurance Plan? Explained Simply

A child’s welfare takes precedence over all else. When a child is born, most Indian families tend to open bank or demat accounts, start public provident funds etc. in the newborn’s name. While that’s all good, how many consider buying health insurance for the newest member of the family?

Here are 5 reasons why getting your child a health insurance plan should be foremost in your mind:-

1. Childhood illnesses and diseases

A child’s immunity is still building up during the course of their childhood; during this time, your little one is susceptible to several illnesses and diseases. From Endocrine disorders like diabetes to genetic disorders and simpler infections like the regular batch of illnesses, we all go through, having an insurance plan for a child can be a tremendous source of relief. Apart from the immeasurable tension that a parent goes through for their child’s well-being, the financial brunt borne in dealing with the medical costs can also amount to quite a bit of stress.

2. Family floaters and corporate plans may not be enough

A family floater plan may not be enough if someone else in the family also requires hospitalisation at the same time. Balancing it out can become a difficult task. From the corporate cover perspective, if you’re between jobs, freelancing or your offices doesn’t provide an insurance but an accident cover, having insurance for your child becomes vital.

3. Lifestyle

Today’s lifestyle, especially for children, is just as fast-paced as adults, in some cases. From unhealthy fast food and snacks and drinks loaded with preservatives, artificial colours and such, it’s increasingly difficult to maintain a strict, healthy diet for a child, although this is changing rapidly. But with increasing pollution levels children have started developing respiratory disorders in highly populated areas and other diseases which makes having an insurance policy so much more important.

4. Increase in healthcare costs

The expenditure on medical has been substantially increasing over the last decade. A room in a good hospital can cost as much as that of a hotel. The other expenses incurred for the doctor’s consulting fees and various tests can end up in a ballooned up hospital bill. There’s also the cost of medicines, check-ups etc. that further increase your expenses. A good health insurance plan can help alleviate some of these costs.

5. More people are getting hospitalised

According to an estimation by the National Sample Survey Office (NSSO) (Ref), the number of children getting hospitalised has increased from 31 out of every 1000 in 2004, to 44 out of 1000 in 2014, in urban areas. A similar trend has been observed in rural areas as well. With these kinds of statistics, it’s become even more important to plan well for our children, not just for their future, but for their present as well.

By purchasing a suitable health insurance plan for a child, a parent not only protects her little one but also makes a prudent financial decision.