Whether you’re expecting your first child or your second, getting life insurance while pregnant is a major consideration.
In the event of something happening to you or your spouse/partner, you want to make sure that your family members and unborn child are taken care of.
It is possible to get life insurance while pregnant. Though you may have to look for an insurer who will cover you until you can take a medical exam post-delivery.
In this article, we break down life insurance during pregnancy and explore how it works, the advantages, and how you can get the coverage you and your family need. So if you’re currently expecting and looking to put the best protection in place, read on to learn more.
What is Life Insurance when you are Pregnant?
Life insurance while pregnant refers to life insurance that you may get to protect your family (or future family). There are some differences in the application process if you are pregnant, however.
When debating whether to get life insurance while pregnant, there are additional features you can look for. For example, by investing in plans that include additional coverage for delivery-related medical expenses, expectant mothers can be assured that they will have access to the best care possible, regardless of financial strain.
Similarly, some individuals have challenges getting life insurance while pregnant due to its cost. Premiums on such plans can be higher for families who may already be struggling financially during this time. Furthermore, some people feel that the risk of developing serious postpartum conditions or complications is low enough that they would not benefit from such a policy due to its specific nature.
Ultimately, the decision to invest in life insurance while pregnant should be thoroughly considered based on individual circumstances before committing to it.
When considering life insurance while pregnant, it is important to understand your eligibility requirements. Generally, an insurance company is not concerned with whether a woman is pregnant at the time of applying; they focus more on other factors such as age, health history, current medical condition, and lifestyle. Therefore, most companies allow you to purchase a policy during pregnancy and the rate classifications are typically based on the same criteria they would use if the woman were not pregnant.
That being said, some insurers may impose certain restrictions on pregnant applicants based on the type of policy and the insurer’s personal practices. For instance, underwriting guidelines might restrict coverage to those women in their second trimester or later due to possible prenatal complications.
It is still important for pregnant women who are interested in purchasing life insurance to pay attention to eligibility requirements.
With this knowledge, we can now turn our attention to what kinds of premiums (costs) an expecting mother may find when shopping around for a new life insurance policy. This will be addressed in our next section: 'Life Insurance Premiums During Pregnancy'.
- According to the National Association of Insurance Commissioners (NAIC), nearly 80 percent of insurance companies still provide policies for pregnant women.
- Nearly all life insurance companies will require a health exam before approving an application. However, there are some companies that may make exceptions if pregnant women cannot healthfully complete the exams.
- In most cases, the cost of life insurance coverage won’t increase because of pregnancy, but it is beneficial to shop around with multiple companies to find the best rate.
When should you apply for life insurance if you're pregnant?
It is recommended to apply for life insurance coverage before becoming pregnant, or in the early stages of pregnancy. Some life insurance companies may consider pregnancy as a pre-existing medical condition and either decline coverage or charge higher premiums.
It is important to disclose any pregnancy or planned pregnancy during the application process to ensure your policy remains valid. The insurance company may also require a medical examination, and the results of this examination can affect the coverage and premium rate offered.
If you are already pregnant and in need of life insurance coverage, it may still be possible to obtain a policy, but it is best to discuss your options with a qualified insurance agent or financial advisor.
Life Insurance Premiums During Pregnancy
When pregnant, the process of getting life insurance includes a variety of questions relating to premium rates and coverage options.
Some insurers actively encourage individuals to apply for life insurance before getting pregnant because fertility treatments are potentially riskier than normal and can affect the cost of a policy. When applying for new coverage during pregnancy, applicants should be prepared to answer health questions and provide medical records regarding their condition. However, most insurance providers view pregnancies in healthy individuals as low risk and therefore have minimal effect on premiums.
On the other hand, rates associated with complications stemming from high-risk pregnancies may vary greatly depending on a variety of factors such as pre-existing medical conditions, the severity of complications, and the treatment required. A high-risk pregnancy may also cause premiums to temporarily increase until such time as the policyholder’s health has been determined to be stable and no further medical events are expected.
Overall, the costs associated with life insurance during pregnancy may vary based on a number of factors such as current health conditions and any expected complications associated with the pregnancy.
Factors That Influence Life Insurance Rates
Purchasing life insurance while pregnant doesn't have to be complex, particularly if there are no major existing medical conditions.
The main factors affecting your rate include age, health history, lifestyle choices, and the type of policy chosen. Policyholders below the age of 35 tend to get better rates because they are considered to be at a lower risk than those over 35. In general, a healthy mother who does not smoke and participates in regular exercise will also get lower rates compared to someone who has several health issues or an unhealthy lifestyle. The type of policy (term versus whole life) and coverage limits chosen can also increase the cost of premiums, as numerous variables and benefits are factored in when determining prices.
Understanding your own circumstances and how different policies might apply to them is key in finding the right policy. With this knowledge, you can move forward knowing that the life insurance you purchase is tailored specifically for you and your family's needs.
How to Choose the Right Policy for Expectant Mothers
When it comes to life insurance while pregnant, expectant mothers have several options available. The two main types are term and whole life insurance policies. While the right policy will depend on the individual’s needs and goals, a brief overview of both can help prospective policyholders decide which may be right for them.
Term life insurance is coverage for a specified period of time, typically anywhere from 10-30 years. Many term policies are flexible, allowing the policyholder to adjust the amount of coverage or length of the term as their financial situation changes over time. Premiums can be relatively inexpensive, making this an attractive option for an expecting parent who may be on a budget.
Whole life insurance offers lifelong protection, with other benefits such as an accumulating cash value depending on the type of coverage chosen. Premiums tend to be higher than those for term policies, but they can also provide another avenue for retirement savings or building generational wealth. This could be a good choice for those seeking more comprehensive coverage and more long-term financial planning options.
No matter which type of policy you choose, expectant parents should consider the amount of coverage they need and the duration that makes sense for you.
Things to Keep in Mind When Choosing Life Insurance as a Pregnant Person
Life insurance is often seen as a safe way to ensure the financial security for your family. Here are some important things to keep in mind when selecting life insurance while pregnant.
1. Understanding Your Needs: Life insurance is most beneficial if it matches your current lifestyle, as well as any potential changes that could occur during and after your pregnancy. To make sure you’re choosing the right policy, consider potential expenses such as medical costs, childcare needs, and any other financial burdens that may arise during the coming months.
2. Review Your Options: Don’t just assume that the policy you already have is enough; review available options to see if there are any additional features that would be beneficial to you and your family’s future. Consider seeking advice from a financial planner or insurance broker/agent who can help you evaluate which policies might be best suited for your specific needs.
3. Be Aware of Costs Versus Benefits: Life insurance has become increasingly expensive in recent years, so make sure you are comfortable with the premium amounts compared to what benefits you’re receiving from the policy. This decision should be based on both short-term and long-term considerations—so, for example, if your current financial situation allows for a more expensive policy option, realistically consider if this will still be feasible after the baby arrives (i.e., whether there will still be funds available between daycare costs and income). Once the baby arrives, you should also consider naming your child as the beneficiary to ensure financial security for your child or children.
4. Understand Your Time Frame: Different policies offer different time frames, so it’s essential to understand how long each one runs before committing to one or another. Also, research if there is an option to renew or adjust coverage at any point in the future if your circumstances later change.
5. Read the Fine Print: Don’t rush into signing anything until you fully understand all of the details within the policy documents associated with each policy you are considering—particularly those with information in regard to payments, cancellations, or any exclusions that could affect eligibility or coverage going forward (e.g., chronic illnesses or preexisting conditions).
Choosing the best life insurance while pregnant doesn’t need to be an intimidating process; by doing your research and understanding all of the fine details associated with each type of coverage, you can make an informed decision about what works best for you. Our brokers as Dundas Life can help you along choose the right insurance policy to fit your needs. Contact us today and get your insurance policy today.
Frequently Asked Questions
Is it more expensive to purchase life insurance while pregnant?
Yes, life insurance rates may be more expensive if you purchase coverage while pregnant. Insurance companies often factor in age, weight (or weight gain), and health status when setting premiums, and pregnancy is generally seen as a riskier time since it can increase the likelihood that an insured may need to utilize their coverage. Additionally, some insurers may limit the amount of insurance they are willing to provide while a policyholder is pregnant since there is increased uncertainty around future medical costs.
Are there any life insurance companies that cover pregnancies?
Yes, there are a number of life insurance companies that offer coverage for pregnancies. The details of each policy will vary from company to company, but they tend to have a few common features.
Most policies will cover the normal expenses associated with a healthy pregnancy and birth, including office visits, ultrasounds, and other tests, doctor fees, hospital fees, and medication. Most policies also cover complications related to the pregnancy that may arise, such as preterm labor or gestational diabetes. The coverage time period is typically around nine months in length, although some companies may offer additional coverage if needed.
In addition to offering coverage for the costs associated with pregnancy, many life insurance companies provide maternity leave options and other services that help support parents during pregnancy. Some policies even provide benefits for new mothers in the form of supplemental income or accommodations for new mothers adjusting to their new status outside of work.
As you can see, there are multiple life insurance companies that offer coverage for pregnant women and their families. Be sure to shop around and compare policies before deciding which one meets your needs.
What types of life insurance policies are available during pregnancy?
There are two main types of life insurance policies available during pregnancy: term life insurance and whole life insurance.
Term life insurance is usually the more affordable, straightforward choice. It's designed to provide financial protection for a limited amount of time, such as 10, 20, or 30 years. During this specified period, if the insured passes away, their beneficiaries will receive a lump sum payment. This type of policy is beneficial for those who wish to maximize their coverage without spending a huge amount of money on premiums – especially beneficial for pregnant women who may not be able to commit to regular payments.
Permanent life insurance is a type of life insurance that provides coverage for the policyholder's entire life, rather than just a specified term. Permanent life insurance policies usually come with a savings component that builds cash value over time, which can be borrowed against or used to pay premiums. There are several types of permanent life insurance, including whole life, universal life, and variable life, each with its own unique features and benefits. These policies are typically more expensive than term life insurance, but they provide a lifelong death benefit and often have additional financial benefits.
What are the different riders available with life insurance coverage?
Life insurance coverage for pregnant women typically does not come with specific riders. However, most life insurance policies offer a range of optional riders that can be added for an additional cost. Some of the most common riders include:
- Accidental Death Benefit Rider, which provides an additional death benefit if the policyholder dies as a result of an accident.
- Waiver of Premium Rider, which waives the policyholder's premium payments if they become disabled.
- Critical Illness Rider, which provides a lump sum payment if the policyholder is diagnosed with a critical illness such as cancer, heart attack, or stroke.
- Terminal Illness Rider, which provides an accelerated death benefit if the policyholder is diagnosed with a terminal illness.
- Children's Term Rider, which provides life insurance coverage for the policyholder's children.
Note that the availability of these riders may vary by insurance company and policy, and the specific terms and conditions of each rider will also differ.
What to do if turned down for life insurance while pregnant?
If you are turned down for life insurance coverage while pregnant, there are several options you can consider:
- Wait until after the birth of your child: Some life insurance companies may be willing to provide coverage after the birth of your child and after any complications related to the pregnancy have been resolved.
- Look for alternative coverage: There are some insurance companies that specialize in providing coverage for individuals with pre-existing medical conditions, including pregnancy. You can consider reaching out to these companies to see if they can offer you coverage.
- Consider a guaranteed-issue life insurance policy: Guaranteed-issue life insurance policies do not require a medical exam or ask health-related questions, so they may be an option if you have been turned down for coverage due to your pregnancy. However, these policies typically have higher premiums and lower death benefits.
- Re-apply after the birth: You can also wait until after the birth of your child and re-apply for life insurance coverage once any complications related to the pregnancy have been resolved.
It is important to work with a qualified insurance agent or financial advisor to understand your options and find the best coverage for your needs.