【BB/Unborn babies】Can you buy critical illness insurance before birth? Help mums compare cover and premiums.

At present, most whole-life critical illness insurance policies on the market require newborn babies to be at least 15 days old before they can be insured. However, if a baby has a congenital condition, any critical illness that subsequently develops will not be covered or compensated by the insurance company, causing considerable concern among many parents. Nevertheless, there are currently two insurance products on the market that further lower the eligible entry age, and we will also compare their premiums this time.

AIA AIA On Your Side–First Protection for Your Baby (the infant version of AIA On Your Side) and YFLifeYF Life Prime Health Protection (PrimeHealth Pro infant version) state that provided the mother is aged between 18 and 45 during pregnancy and the baby has reached the 22nd week of gestation, the baby can be insured even while still “swimming” in the mother’s womb.

Table 1: Comparison of the details and premiums of the two critical illness insurance policies available before birth

(Based on a 35-year-old non-smoking mother as the policyholder, with the child yet to be born and a basic sum assured of US$150,000)

According to a report by the Asian Society of Cardiovascular Imaging, 3 out of every 500 babies in Hong Kong are born with congenital heart disease. The American Pregnancy Association points out that premature babies born before 34 weeks may suffer from intracranial haemorrhage, with approximately one-third of those born between 24 and 26 weeks developing this condition. Even after recovery, these conditions may subsequently lead to certain critical illnesses.

For insurance companies, providing critical illness cover for unborn babies entails considerable risk, as congenital conditions often remain latent for many years and may develop into critical illnesses later in life. Therefore, policies generally do not provide cover for illnesses caused by congenital conditions.

However, parents want their children to have comprehensive critical illness protection and do not want future critical illnesses to be excluded because of congenital conditions. The two products mentioned above provide cover for insured critical illnesses caused by congenital conditions whose symptoms have not yet been detected. In both cases, cover begins as early as the 22nd week of pregnancy.

First, let us compare the coverage for critical illnesses in children. AIA covers a total of 13 childhood illnesses, with 20% of the basic sum assured payable in advance for each illness, and coverage provided until age 18. YF Life performs better in this area: it covers 18 childhood illnesses, allows 30% of the basic sum assured to be paid in advance, and provides coverage until age 25.

Table 2: Childhood illnesses covered by the two products

As for severe illness and death benefits for newborn babies, the terms of the two products are the same. If a baby unfortunately suffers a critical illness within 90 days of birth, 20% of the benefit amount for the insured illness will be paid; after 90 days, the benefit payable will be 100% of the basic sum assured. For the death benefit, if the baby unfortunately dies before 180 days after birth, 20% of the death benefit will be paid; after 180 days, the benefit payable will be 100%.

YF Life also provides cash allowances for cancer, stroke and heart disease, with 1% of the basic sum assured payable each month. If a baby contracts any of these illnesses within 90 days of birth, 20% of the cash allowance will be payable; after 90 days, the benefit payable will be 100%. The cash allowances mentioned above are subject to policy terms and conditions. For example, the cash allowance for cancer is payable for a maximum of 180 months.

However, it is worth noting that expectant mothers generally undergo different types of tests before 22 weeks, including structural scans and maternal blood tests, to identify at an early stage whether the foetus has any abnormalities or genetic conditions. The results of these tests also need to be declared to the insurance company, allowing the insurer to screen out applicants with higher risks.

This comparison focuses solely on coverage during the early stages after the baby’s birth. Overall, YF Life comes out ahead of AIA on paper. It is also worth noting that both products are whole-of-life critical illness insurance. YF Life provides better overall coverage than AIA in terms of single critical illness, multiple critical illness and guaranteed return scores.

As its overall coverage is better, YF Life’s premium is slightly higher than AIA’s by 16%. Taking a basic sum assured of US$150,000 as an example, YF Life’s annual premium is US$1,875, with total premiums of US$46,875 payable over 25 years. Finally, if you would like to find out more, you may wish to consult a professional insurance adviser.

Note: 
1. This article was prepared by 10Life based on market information collected through various channels and is for general reference only. It does not take into account any individual needs or suitability and should not be regarded as sales advice. Before taking out a policy, you should discuss an insurance plan suitable for you with a licensed insurance adviser, and refer to the information provided by the insurance company as the basis. 
2. The premium information above was updated on 21 April 2022 and does not include the premium levy charged by the Insurance Authority. 
3. Last updated: 21 April 2022.

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.