Insurance for Unborn Babies

ING Australia has launched what is likely to be the world's first insurance product for unborn babies. The policy insures against birth complications, still birth and defects such as Down syndrome, spina bifida, blindness, deafness, cleft palate and heart disorders. The sum assured is A$50,000 and women between ages 16 and 40 are eligible to purchase. There is a 12-month waiting period and the cover ends on the child's 2nd birthday. Premium is A$439 for age 32 and double that for age 40.

The insurance plan recognises the trend in Australia where the median age of 1st time mothers has increased from 27 in 1985 to 31 currently. The risk of pregnancy complications and birth defects increases with the age of the mother.

While the product may be innovative, the medical experts seem to be sceptical. NSW Midwives Association claimed that ING was adopting marketing fear strategy and the Royal Australian and New Zealand College of Obstetricians and Gynaecologists warned that women could be frightened into paying for insurance they didn't need.

Source: The Sydney Morning Herald