Baby insurance gets mixed reviews

by Kate Munro

May 9, 2008

INSURANCE giant ING’s new cover for unborn babies has received mixed reviews from parents and disability groups since its launch two weeks ago.

The ‘Baby Care’ option pays out up to $50,000 for complications in pregnancy, still births and children born with congenital abnormalities such as Down’s syndrome, cleft palate and spina bifida. The cover costs about $30 per month on top of the normal health insurance premium.

ING spokeswoman Laura Halbert says the public has responded positively to the new policy.

“I would say we received almost 100 calls on the day the product was launched and it has definitely generated a great deal of interest,” Ms Halbert said.

However, some parents and disability groups are questioning the value of such insurance.

Luke Garswood, from advocacy group People With Disabilities WA, said the policy does not reflect the true costs associated with caring for children with disabilities.

“We’re not opposed to it or offended by it as some organisations may be, but we do question whether the levels of insurance being talked about are adequate,” Mr Garswood said. “Is it value for money?

“It does appear to be a substantial cost for a small return.”

Brooke Bleakley, a high school special needs teacher and mother of a child born with a cleft palate, says the Baby Care option is excessive.

“There is always a risk,” Ms Bleakley said, “but given the risk is fairly minimal, as a parent and someone with years of experience working with special needs kids, I wouldn’t jump at getting insured.

 “It might be something I would consider if I was in a high risk category, but most abnormalities can be detected prior to birth.”

Ms Bleakley added that, depending on the level of disability, many parents might choose to terminate the pregnancy.

“And then even if your child is born with a disability, most of the initial care costs are covered by the public health system anyway,” she added, “so it seems to be a case of insurance companies trying to make money.”

Laura Halbert understands some people may be opposed to the cover.

“We appreciate that $50,000 wouldn’t be enough to cover children born with abnormalities for life,” she said, “but based on what people are willing to pay, that is what we are able to offer.

“Like any other corporation, ING is interested in making a profit, but we’re unique in that we also serve a social need.”