[Becoming an Insurance Insider] Our Child's First Insurance... Children's Insurance or Prenatal Insurance?

[Editor's Note]A straightforward explanation of complicated insurance that remains confusing even after listening to explanations. There is no bad insurance in the world, only insurance that doesn't suit me. Following easy-to-understand insurance explanations will soon lead you to become an 'insurance insider.'

[Asia Economy Reporter Oh Hyungil] Jo Younghwa (35), a pregnant woman in her 10th week, was looking for the first insurance for her child to be born this year but fell into confusion after hearing that the types vary by insurance company and coverage differs depending on the subscription timing. The more she learned about what makes prenatal insurance different from insurance for adults and what children’s insurance is, the more complicated it seemed. Jo said, "I wanted to sign up for insurance because I heard there would be many hospital visits until preschool age, but I don’t know which insurance is good, so I am searching one by one on insurance planning sites."

Known as 'my child's first insurance in life,' prenatal insurance has gained significant interest in recent years as an essential item for childcare. Parents want to enroll in good insurance as much as they want to raise their children well, but choosing is not easy. Insurance companies and planners mainly focus their promotional marketing on parents visiting obstetrics clinics or baby fairs.

First, the exact product name for prenatal insurance is children’s insurance. Prenatal insurance refers to configuring customized riders for the fetus, such as congenital anomaly surgery costs, low birth weight childcare expenses, and birth risks.

It covers incubator costs due to low birth weight, neonatal diseases, respiratory distress that may occur in premature births, and prepares for risks that can occur before and after birth, such as congenital anomalies, congenital malformations, and jaundice.

Generally, actual medical expenses are prepared with lifelong coverage, and fetal-related coverages are set with a maturity age of 30, using post-contract conversion systems or preparing long-term coverage for critical illnesses.

Since April 2018, actual medical expenses can only be composed independently, so you must subscribe separately to actual medical expenses and comprehensive insurance. Actual medical expenses are renewed annually and can be covered up to age 100.

Opinions also differ on the timing of prenatal insurance subscription. Whether to subscribe immediately after pregnancy or before 22 weeks and 6 days.

The fetal rider (newborn coverage) can be configured before 22 weeks and 6 days, but if the mother or fetus receives an abnormal diagnosis, insurance subscription may be restricted depending on the case.

The difference in premiums is not due to selecting riders but depends on how the coverage period is designed. The 30-year maturity product covers until the child’s economic independence and features lower premiums compared to the 100-year maturity product.

At the maturity point of 30 years, it is possible to subscribe to new adult insurance or convert the contract to a 100-year maturity. However, depending on the child’s health status at maturity, new contract subscription or contract conversion may not be possible.

You should also consider premium discount services.

Some products provide additional services such as health and childcare consultations, hospital guidance and reservation agency, and screening guidance, so it is advantageous to check these in advance. Also, regarding cancer-related coverage, some products have an exemption period after age 15, so if the product applies, it is better to subscribe before age 15.