Policy to insure against birth defects

Louise Hall and Matthew Benns
April 27, 2008
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Insure against defects

Expectant mothers will soon be able to insure unborn babies against pregnancy complications, birth defects and death.

Mothers whose children have disabilities such as blindness and deafness or other congenital malformations - including spina bifida, Down syndrome and cleft palate - will receive $50,000 under an insurance policy launched this week.

Women suffering dangerous conditions, such as ectopic pregnancy, will get a $50,000 lump sum, while stillbirths qualify for a $10,000 payout. The baby cover, offered through insurance giant ING, is the first of its kind in Australia, possibly the world, and is aimed at the growing number of older mothers.

Australia's median age for new mothers is almost 31, up from 27 in 1985. A 25-year-old woman has a one-in-1400 chance of having a baby with Down syndrome and one-in-500 chance of having a live baby with a chromosomal abnormality. But the risk for both defects rises to one in 60 for 40-year-old women. For women 35 or over, the risk of having a stillborn is one in 440, compared to one in 1000 for younger women.

The baby policy, an optional extra in ING's top life insurance, will be available to women aged 16 to 40. There is a 12-month waiting period before starting, and the cover ends on the child's second birthday.

Premiums rise with age. A 32-year-old non-smoking professional on $80,000 a year would pay an annual life premium of about $1440, including the $439 baby option. A 40-year-old woman would pay double that.

ING spokesman Mark Vilo said the payouts could be used to cover medical expenses, adjustments to the home, mortgage repayments, replace salary or wages, pay for a carer, or cover funeral costs if the child died.

The company would not require mothers to undergo genetic testing to determine if they had a greater chance of having a baby with a defect.

"Every woman that's in the process of having a child knows the risks," he said. "We don't make people undergo genetic testing to find out things they don't want to." Continued...