THE NEED FOR INSURANCE DURING MATERNITY IN BULGARIA

Nikolay Ninov¹ and Valentina Ninova^2
1Assoc. Prof., PhD. D.A. Tsenov Academy of Economics, Svishtov, Bulgaria, n.ninov@uni-svishtov.bg
²Assist. Prof., PhD. D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, v.ninova@uni-svishtov.bg

Abstract

The negative demographic trend over the last more than two decades in the Republic of Bulgaria raises the question of the reasons for the falling birth rate in the country. Some of these reasons led to the negative natural growth are purely negative. Some couples give up the opportunity for second and following children due to the fact that, growing them is related to newly created additional, often significant family budget expenses. An alternative to overcome the situation concerning the demographic decline in the country is the use of economic incentives to young families for child’s birth and childcare.  Payments to which parents are entitled under the social security system (in case they are insured persons) and the social assistance system (in case they are uninsured persons) unfortunately are of small size that does not allow full satisfaction of newly emerging needs.  In the process of clarifying this type of payment, it is logical to conclude that it is necessary to develop the potential of additional activities such as insurance. In this connection, maternity insurance is characterised and its advantages are presented. The idea is that, thanks to its introduction by insurance companies in Bulgaria, the socio-economic condition of the families could be improved and hence to achieve partial solution of the demographic problems in the country.

Keywords: insurance, insurance product, maternity.