Mother's Day: Planning Parenthood? Here’s Why Maternity Insurance Deserves A Spot On Your To-Do List

For most couples, planning for a baby can become a heady mix of excitement, nerves—and budgeting. While cots, clothes and cribs are the visible costs, it is the hospital bills and medical contingencies that can upend the financial planning if not handled early. This is where maternity insurance, a niche but increasingly relevant cover, steps in.

But unlike standard health insurance, which many assume will cover all pregnancy-related expenses, a maternity policy has its own rules, waiting periods, exclusions, and gaps. And ignoring those nuances can cost you at the time of need.

Why maternity insurance isn’t just another add-on

"Maternity insurance is a specialised cover that includes expenses related to childbirth including associated complications, prenatal and postnatal care, infertility treatments, legal support, vaccination cover for the newborn and wellness features for expecting mothers," says Priya Deshmukh, Head, Health Products, Operations and Services at ICICI Lombard.

While some standard health policies offer maternity as an add-on, the base plans usually don’t go beyond basic delivery costs and newborn care, she explains.

The real difference lies in the scope, policies specifically designed for maternity often include expenses like surrogacy or oocyte donation-related complications, which standard plans won’t touch unless explicitly mentioned.

And for those leaning on their corporate group health plan? That might not be enough.

“Corporate group policies often come with limited maternity benefits or exclusions for certain complications,” Deshmukh cautions. "Having an individual maternity cover ensures financial continuity, especially if you switch jobs or exit the group plan."

Waiting Period Requirements

Here’s the catch: most maternity covers come with a long waiting period, typically between 9 months to three years. That means if you buy a policy while already pregnant, it likely won’t help much. "Until recently, expectant parents couldn’t get insurance for ongoing pregnancies," says Siddharth Singhal, Head of Health Insurance at Policybazaar.

But the industry has started adapting. Singhal points to a recent example where a three-month waiting period was introduced, allowing quicker access to maternity benefits, albeit as a rider to an existing policy. "It’s a positive shift for families who may have missed the planning window but still want some cover," he says.

Still, don’t count on this being the norm, most plans retain longer wait times, which means couples need to plan years in advance if they want full coverage.

Sub-limits can limit your coverage

It’s not just about getting covered, it’s about how much the insurer will pay. Sub-limits, where insurers cap the amount reimbursed for certain treatments, are common in maternity policies.

"Given rising medical costs, couples should ideally avoid policies with sub-limits, even if premiums are higher," Singhal advises. “Otherwise, you might still end up paying a significant amount out-of-pocket.”

The delivery type, normal or C-section—and city-wise cost differences also matter. “Covers typically account for both delivery types, but city-based cost variations and hospital-specific pricing can influence the amount of cover required,” adds Deshmukh.

Add-on vs bundled plans: What works better?

Some insurers offer maternity as a standalone rider to a regular policy. But that may not always be the most economical route.

"A regular policy with bundled maternity cover offers better value," says Srinivasan Gopalan, MD & CEO, Galaxy Health Insurance. “Standalone add-ons tend to come with higher premiums, while bundled plans benefit from risk pooling and more balanced pricing.” In simple terms: you might pay less and get more with a well-designed bundled policy.

What’s not covered?

Of course, there are gaps. "Expenses related to miscarriage, unless caused by accident, are not covered," Gopalan points out. Also on the exclusion list: medical termination of pregnancy unless it’s legally mandated, and some complications such as gestational diabetes mellitus (GDM), eclampsia or cervical cerclage.

But there is some good news, some plans do cover neonatal intensive care and congenital internal defects in newborns. “Such coverage is typically provided without sub-limits, ensuring babies receive essential medical care,” Gopalan says.

The bottom line: Plan early, read the fine print

If you’re planning a baby, or even if it’s a distant thought, maternity insurance deserves your attention, ideally before the pregnancy. Early planning helps you ride out the waiting period, choose better coverage, and avoid nasty exclusions or cost shocks.

More importantly, as Deshmukh sums it up: “Having personal maternity cover ensures more comprehensive protection, independent of employment status.”

In a country where healthcare inflation continues to climb and delivery costs vary wildly across cities, the decision to get maternity insurance is less about luxury and more about smart, long-term financial planning. Motherhood may be priceless, but medical bills are anything but.