Children require special attention right from the time they are born until they become an adult. But given the rise in food contamination, pollution, and poor lifestyle & eating habits, kids today are highly susceptible to various health issues. With the cost of healthcare escalating out of control in India especially in cities like Bangalore, it would definitely be a good idea to invest in a children's health insurance policy in 2025.

Children's health insurance is a form of health insurance policy that covers the medical needs of children. It is created to cover the healthcare costs incurred on hospitalization, immunization, and medical check-ups of kids. It financially protects the health of a child by providing financial assistance to the parents when the child falls ill, gets hurt, or is diagnosed with an illness. A child health insurance policy can be bought for infants, pre-teens as well as adolescents. Parents can buy children health insurance policies and receive quality treatment for their children at the appropriate time.

Why Should You Purchase Health Insurance for Children?

Investing in a children's health insurance policy is extremely beneficial for your child in the long term. Take a look at the reasons why you should purchase a children health insurance plan for your kids:

Susceptible to Injuries

Young children are more susceptible to accidents as they do not know how to take care of themselves. Infants can also get easily injured while learning to walk and run. As a result, kids frequently get hurt. With health insurance for kids, you do not have to worry about covering your child’s treatment as it will be handled by the insurance provider.

Weaker Immunity

 Kids are more prone to catching an infection or contracting a disease because they have a weaker immune system compared to adults. Frequent visits to the hospital can negatively impact your finances especially in a city like Bangalore where one hospitalisation can empty your pockets. However, in the case of a child health insurance policy, the treatment cost of any unexpected disease or infection contracted by your child will be covered by the insurer.

Increased Risk Exposure

Typically, children are more exposed to diseases, viruses, and infections because they go out to play regularly and are not cautious about taking precautions. For example, kids may eat something without washing their hands and fall ill. A child health insurance policy enables you to guarantee the best medical treatment for your kids without depleting your savings.

Unhealthy Lifestyle Habits

The lifestyle of children has worsened over the past couple of decades. More children are abandoning physical activities for watching TV and playing games on phones. Even eating habits have declined as more kids prefer junk food over homemade food. As a result, children have become more vulnerable to lifestyle diseases. But if your child is covered under health insurance, it will pay for their treatment for a variety of health issues.

Types of Children Health Insurance Plans

Broadly, child health insurance plans can be divided into two types:

Family Floater Health Insurance

It provides medical coverage to a child along with their family members on a floater sum insured basis. It provides comprehensive protection for your child by doubling up as a children's health insurance policy. Such plans generally cover about 4 and 7 members of the family, including children.  Going for a family health plan for your child is more financially feasible as it offers wider coverage at an affordable premium.

Individual Health Insurance for Kids

 It provides customized coverage for a child on an individual sum insured basis. It only covers the medical expenses of the insured child and not of other family members. As compared to family floater plans, this type of child health insurance plan is available for a lower premium.

Inclusions of Children Health Insurance Plans

 A child health insurance plan provides the following coverage:

In-patient Hospitalization Costs

It covers the medical expenses incurred on the hospitalization of the insured child for more than 24 hours. It includes the ICU fees, cost of medications, diagnostic services, room rent, nursing fees, etc.

 Newborn Baby Cover

It provides coverage for the medical expenses incurred on the neonatal care of a newborn baby. This cover is generally available as part of the maternity benefit if chosen by the mother of the baby.

 Day Care Treatments

It covers the cost of availing day care treatments for the insured child that requires a maximum hospital stay of less than 24 hours.

 Pre-hospitalization Costs

It pays for any medical expenses incurred by the insured child before being admitted to a hospital. It is usually available for 30 to 90 days before hospitalization.

 Post-hospitalization Costs

It covers the cost of any medical consultations or healthcare services availed by the insured child after being discharged from the hospital. It is generally covered for 60 to 180 days after hospitalization.

 Vaccination Cover

It pays for the medical expenses incurred on the vaccination of a newborn baby in the first year. This cover is also available along with the maternity benefit cover chosen by the baby’s mother.

OPD Treatment

It covers the cost of availing outpatient consultations, dental treatment, or diagnostic services for the insured child.

 Ambulance Fees

It provides coverage for the fees incurred on using ambulance services to transport the insured child to the nearest hospital during a health emergency.
 Domiciliary Hospitalization –It pays for the medical expenses incurred on the treatment of the insured child at home on the recommendation of a qualified doctor.

The following medical expenses are excluded under health insurance for kids:

• Treatment for any injuries sustained during participation in adventure sports
• Treatment for pre-existing diseases of the child until the waiting period is over
• Treatment for any congenital disabilities of the insured child
• Treatment for personality or behavioral disorders in the insured child
• Treatment for any injuries sustained due to armed conflict or atomic hazards

Advantages of Purchasing Kids' Medical Insurance Policies

Kid’s medical insurance policies provide the following major perks:

• All-Inclusive Healthcare Protection – It safeguards the covered minor against an extensive array of healthcare expenditures, such as hospitalization fees, care for accidental harm, immunization charges, outpatient consultations, etc. Certain policies may additionally include extra perks like complimentary medical examination provisions.
• Monetary Assurance – By securing a child’s medical insurance plan, your child will be economically shielded against any unforeseen health-related urgencies at any moment.
• Uncompromised Healthcare – It stops you from sacrificing your child’s treatment due to budgetary restrictions. Instead, it enables access to the most effective care accessible.
• Seamless Cashless Treatment – Every child’s medical insurance policy includes cashless treatment facilities if your child receives admission to an affiliated hospital under your insurer for medical attention.
• Household Rebate – If you decide to incorporate your child into your medical policy with a separate insured sum, you can receive a household rebate on the payable premium.
• Taxation Advantages – You can claim deductions on the medical insurance premium paid for your child’s coverage under Section 80D of the Income Tax Act.