【Baby/Newborn】Can you buy critical illness insurance before birth? Helping mothers compare coverage and premiums

Most whole-life critical illness insurance on the market currently requires a newborn to be at least 15 days old before it can be insured, but if the baby has a congenital condition and later develops a critical illness, the insurer will not provide coverage or compensation, causing considerable concern for many parents. However, there are currently two insurance products on the market that further lower the age at application; we will also compare premiums this time.

AIA 友邦愛伴航–首護摯寶 (i.e. AIA On Your Side child version) and YF Life 萬通保險首選健康愛護保 (Prime Health Pro child version) both state that as long as the mother is aged 18 to 45 during pregnancy and the baby is already at the 22nd week, it can be insured even if it is still "swimming" in the mother's womb.

Table 1: Comparison of the details and premiums of two critical illness insurance plans that can be applied for before birth

(Assuming the policyholder is a 35-year-old non-smoking mother, the child has not yet been born, and the basic sum insured is USD 150,000)

According to a report by the Asian Society of Cardiovascular Imaging, 3 out of every 500 infants in Hong Kong are born with congenital heart disease. The American Pregnancy Association notes that preterm infants born before 34 weeks may experience intracranial hemorrhage; about one in three of those born at 24 to 26 weeks develop this condition. Even if these conditions heal, they can still lead to serious illnesses later on.

For insurers, underwriting critical illness coverage for a fetus carries considerable risk, because congenital diseases often remain latent for many years and may later manifest as critical illnesses; therefore policies generally do not provide coverage for illnesses caused by congenital conditions.

But 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 coverage for insured critical illnesses caused by congenital diseases whose symptoms have not yet been detected; the earliest coverage date is also the 22nd week of pregnancy.

First, compare the coverage for childhood critical illnesses. AIA 友邦 covers a total of 13 childhood illnesses, and for each illness you can advance 20% of the basic sum assured, with coverage up to age 18; YF Life 萬通 is stronger in this area — in addition to covering 18 childhood illnesses, it allows an advance of 30% of the basic sum assured, and the coverage period extends to age 25.

Table 2: Overview of childhood illnesses covered by the two products

As for severe illness and death coverage for newborns, 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 insured disease benefit amount will be paid; after 90 days the payout becomes 100% of the basic sum assured. Regarding death benefit, if the baby dies within 180 days of birth, a death benefit of 20% will be paid, and after 180 days it is 100%.

YF Life also provides cash benefits for cancer, stroke, and heart disease, paying 1% of the basic sum assured monthly; if a baby contracts any of these diseases within 90 days of birth, the cash benefit payable is 20%, and after 90 days it is 100%. The above cash benefits are subject to policy limitations; for example, the cancer cash benefit is payable for a maximum of 180 months.

However, it is worth noting that pregnant women typically undergo different types of tests before 22 weeks, including structural scans and maternal blood tests, to detect any special or genetic conditions in the fetus early on. These test results must also be declared to insurers, so insurance companies can screen out applicants with higher risk.

This comparison only focuses on coverage in the early period after the baby is born. Overall, YF Life looks better on paper than AIA. It is also worth noting that both products are whole-life critical illness insurance, and YF Life offers better overall protection than AIA in terms of single critical illness, multiple critical illnesses, and guaranteed return points.

Because the overall coverage is superior, YF Life's premium is about 16% higher than AIA. For example, to obtain a basic sum assured of USD 150,000, YF Life's annual premium is USD 1,875, and the total premium paid over 25 years is USD 46,875. Finally, if mothers need to learn more, they may consult a professional insurance adviser.

Note: 
1. This article was produced by 10Life by collecting market data from various sources 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 purchasing insurance, you should discuss suitable insurance plans with a licensed insurance adviser and rely on the information provided by the insurance company. 
2. The premium information above was updated to 21 April 2022 and does not include premium levies collected 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.