Page 10 - 6. may 2016

ಸಿಂಪುಟ ೬, ಸಿಂಚಿಕ ೫, ಮೋ, ೨೦೧೬
ಉಪ್ಯುಕಿ ಮಾಹಿತಿ Things you should know - Unborn insurance – Jayashree Narasimahan

Welcoming a new-born into this world is a thought that gives joy to many. Even thinking bad thoughts at this
time are forbidden. Therefore bringing up the topic of insuring an unborn child may look like a gloomy pro-
spect. However, as good parents, insuring your unborn child is in fact a step in the right direction since it will
help you deal with the financial aspect arising from child birth and maternal care.

Life insurance products provide financial protection for the life and
health of a person. The question is when does that life begin and at
what point may insurance cover be provided. Pre-natal cover is the
generic name of an innovative product that has emerged in Asia in

recent years to insure an unborn life from the early stages of a preg-
nancy through to birth and for the rest of a child’s life.
The juvenile market (ages 0-19) has traditionally been an important
segment for insurers in Asia. It forms between 15% to 24% of all
1,2
insurance business in Asia. In countries such as Vietnam and Phil-
ippines, the juvenile market accounts for as much as a third of the
insured pool. In the face of increasing competition, the ability to of-
fer coverage before a child is born offers an ideal way of capturing
more of this market earlier.

By issuing a policy covering a person before they are born, pre-natal cover pushes the boundary of the answer
to the question on when insurable life begins.

Typically, pre-natal products comprise of three elements that insure both the mother, and the child she carries,
during different stages of pregnancy and life. The first element insures a pregnant mother until right after her
child is born, offering cover against severe and specific pregnancy complications, hospitalization due to
premature birth or death of the mother. To avoid moral hazard, providing a benefit due to loss of the foetus
isn’t generally encouraged. If the focus of the coverage (the foetus) ceases to exist, insurers typically refund
the premium paid and the policy is cancelled.

The second part of the product covers the immediate period following birth - through to the first few years
(typically two or three years). Coverage during this stage includes serious congenital conditions and specific
childhood diseases that require hospitalization. Some products provide a small benefit upon the death of the
child (including stillbirth).

However, the final part of this product's concept is also where the main focus lies. It provides long-term cov-
erage, including mortality, terminal illness, total permanent disability, critical illness, etc. Essentially, the full
suite of insurance coverage that an insurer offers to its juvenile market can be packaged in the “third part” of
the pre-natal product.

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