Kudos to those who deliver at home naturally. Unfortunately, this moneymaker won't apply.
The Premise: purchase supplemental insurance policies and earn money when giving birth to a baby at the hospital.
My Experience: I paid a total $271.60 a month for six different supplemental health insurance policies and received total payouts of $12,704.13 when I delivered my baby. Yes, I earned more than $12,000. Do I have your attention?
This is something every father- and mother-to-be should know about in order to take advantage of great supplemental health insurance programs. There are more options than the companies I used, but this is my experience.
How it Works
Step 1: Research and sign up for supplemental health insurance policies. They are not a replacement for regular health insurance. Supplemental policies are in addition to health insurance.
- Contact insurance providers that operate in your state and ask for information about supplemental policies that pay you when you are hospitalized overnight and/or during recovery in the hospital. While these policies pay out for overnight hospitalizations from heart surgery to kidney stones, I use them specifically for childbirth.
- Examples include: Hospital Indemnity, Hospital Confinement Indemnity and Hospital Daily Benefit Rider, etc.
- Look for insurance agents or brokers who can offer information on policies from several companies.
- Educate yourself on the limitations and payout factors in the policies.
- Read the fine print.
- Be honest with the agent and ask about any factors that would prevent the company from paying out for a delivery with that policy. Ask the agent to clarify anything you don’t understand.
Step 2: Ask questions. Here are some examples:
- How long do you have to pay monthly premiums before making a claim? Many policies require you to pay monthly premiums for 10 or more months before making a claim, so it isn’t likely a pregnant woman can get a policy.
- What factors influence the insurance payout?
- Does the policy pay out for a single night in the hospital? If the answer is yes, ask for a second policy that will pay out for additional recovery days. Consider an additional policy with a “Hospital Daily Benefit Rider.”
Step 3: Do the math. Calculate each policy's break-even point so you know if it is profitable on your delivery timeline. Example: One policy’s monthly premium is $70. It pays $5,000 in the event of a c-section delivery and 3 night hospital recovery. I gave birth to two children 24 months apart. After 71 months, the payout equals the premium payments (5 years & 11 months). Any delivery or hospitalization prior to that makes a profit.
- My policies have break-even points that range from 30 months to 71 months. Newer policies may not be as profitable.
- Most policies require a premium for a minimum of 10 months or more before making a claim. That investment is required.
Step 4: Sign up. Choose the policies that best fit your needs.
- The policyholder must be the woman who will carry and deliver the baby.
- I purchased six supplemental health insurance policies (years ago) with four different insurance companies:
- Aflac — 2 policies
- Allstate – 1 policy
- Assurity – 1 policy
- Conseco – 2 policies
Step 5: Pay monthly premiums on time, every month!
- There can be no gaps in payment or late payment. This method isn’t right for you if you cannot afford the premiums. I pay $271.60/month for six policies.
Step 6: Deliver your baby in a hospital or location as required by insurance policies.
- Check policies to be sure the delivery location qualifies for making a claim.
- Be admitted and stay overnight!
- If payout amounts are altered by number of recovery days, make sure you know the financial implications before you decide to stay or go home.
Step 7: Submit claims to the insurance companies.
- Obtain claim forms from the insurance companies. Do this before delivery. Each company's claim form looks a little different.
- Once the hospital bill arrives, set aside thirty minutes to an hour to make copies of the bill and fill out claim forms. Submit by fax or mail. Remember to send in all requested documentation.
- Request a copy of the bill from the hospital about a week after your stay.
Step 8: Receive Payment.
- The insurance companies send payment directly to the policyholder.
- Expecting hospitalizations or additional pregnancies? Re-invest some of the payout into monthly premiums.
It has been such a blessing to have this added financial security for my growing family.
This has been a guest post by Bonnie from Mesa, AZ
Find out more about the KCL Contributor Network!