In light of the birth of my third child yesterday I posted about the average cost of delivering a baby. As a follow up I thought we should ask this question – should you pay extra for maternity insurance coverage?
It is becoming more common for insurance companies to add maternity insurance as an additional option (called a maternity ‘rider’). For example, you might pay an additional $per year for maternity coverage.
Photo by Rob Gale
Remember that companies that offer maternity riders plan to recoup their cost because they know those who have the insurance have it because they (obviously) intend to have children. I know Dave Ramsey frequently recommends his listeners not get the maternity insurance coverage, but pay cash for the delivery instead.
Maternity Rider Insurance Points To Consider
- If you are a Christian you might consider MediShare which is a Christian health insurance substitute which has a very reasonable maternity charge.
- Determine the cost of adding maternity to your insurance. EHealthInsurance is one of the fastest ways to compare multiple insurance plans and policies.
- Visit your local hospital and ask them what would be the cost of delivery if you prepaid in your second or third trimester. Will the negotiate a discounted rate?
- Consider the option of a Health Savings Account. You can read some good introductory information here.
Now you have the most of the mathematical information, but there are several factors that cannot be numerically quantified when considering a maternity rider or maternity insurance coverage.
- How soon do you plan to have children? Remember some couples have difficulty so it could be a lot longer than you plan. On other occasions couples have changes of plans. You might say two years, but it could turn out to be four.
- Are you disciplined enough to save the amount you would have paid if you don’t get the maternity rider? If you can automate the payment to another account you can save the money yourself. If you know you wouldn’t do that well then consider the rider.
- Peace of mind. This is the reason most people get maternity insurance. It provides us with peace in the midst of all those what if questions. What is that worth to you?
- If you have previously had children what was your experience like? Typically those who healthy natural deliveries can expect that to be a pattern for future children.
- Remember you most companies require you to have the maternity rider before (typically months) you have the baby. Biologically this means you need to buy the insurance before you get pregnant.