Life Insurance And Pregnancy: What You Need To Know
Getting life insurance is a wise decision for anyone, especially for pregnant women. However, life insurance companies have extra qualifications for those expecting a new baby.
Still, that doesn't mean there's no chance for expectant moms to get much-needed coverage. In this guide, we'll talk about how to get life insurance while pregnant. We'll also answer some of the most frequently asked questions about this topic.
Can You Get Life Insurance While Pregnant?
In general, someone in their first trimester can get a life insurance policy at the same rates as people who are not pregnant. However, people who are in their second or third trimester may be asked by the insurance company to postpone the application until after birth.
It's best to seek the help of a life insurance agency. This can help you find companies that offer policies to those who are further along in their pregnancy. A reliable life insurance agent will assess your individual needs and liaise with various insurance companies so that you can get much-needed coverage prior to giving birth.
Why Should You Get Life Insurance While Pregnant?
If you're planning to add a new member to your family, you need to take steps to make sure you can support them financially. One of the ways you can achieve this is by getting life insurance.
A life insurance policy is designed to pay out a death benefit in the event that the insured person passes away within the coverage period. The benefit depends on the policy's face value, which can range from $25,000 to $1,000,000. Your family members can use this money to replace your income, pay off your debts (e.g. mortgage, credit cards), or cover your funeral expenses.
Life insurance can give you the peace of mind that you can provide for your family even if you pass away within the coverage period. Given that pregnancy can be potentially life-threatening, it's important to be insured prior to giving birth.
According to data from the US Center for Disease Control And Prevention, 17.3 per 100,000 people die from childbirth. Some of the causes of pregnancy-related deaths include:
- Amniotic fluid embolism
- Anesthesia complications
- Cardiomyopathy
- Cerebrovascular accidents
- Other cardiovascular conditions
- Infection or sepsis
- Hemorrhage
- Hypertensive disorders of pregnancy
- Thrombotic pulmonary or other embolisms
Applying For Life Insurance While Pregnant
Life insurance companies review the health and medical history of everyone who applies for insurance. This allows them to assess how risky it is to provide individuals with life insurance coverage.
In general, insurers want to know the following if you're applying for insurance:
- Age
- Sex
- Height and weight ratio
- Hobbies
- Occupation
- Medical history
- Family health history
Individuals who are applying for traditional, fully underwritten policies need to undergo a medical exam. If you're applying for a no-exam policy, you'll only need to answer a few questions about your health and medical history.
Once the life insurance company has these details, they'll begin calculating how risky it is to offer you a policy. Applicants who are considered high-risk are charged with more expensive life insurance premiums.
Being pregnant can affect your life insurance rates in a variety of ways:
Age
Age is a crucial factor when determining life insurance rates. However, it's an even bigger factor for pregnant women.
Getting pregnant before 17 or after the age of 35 means that you're at a higher risk of experiencing complications. More complications also arise after the age of 40. With that said, you can get charged more expensive rates if you become pregnant at these ages.
Weight
Most life insurance companies will use your pre-pregnancy weight when determining your life insurance rates. Some companies may also want to see if your pregnancy weight gain is considered normal or average for someone within your term.
After giving birth, most companies will use your pre-pregnancy weight for up to six months.
Medical Conditions
Life insurance companies will want to know if you have any conditions that can cause pregnancy complications. These conditions include the following:
- Cholestasis
- Preeclampsia
- Elevated cholesterol levels
- High blood pressure
- Gestational diabetes
Note that elevated cholesterol levels are normal during the second and third trimester of pregnancy because it supports the growth of the baby's brain, limbs, and cells. Additionally, your blood pressure can be higher or lower than average.
Thankfully, insurance companies are aware that these are natural consequences of pregnancy. They shouldn't find these as "abnormal" unless your lab results show something that is uncommon for someone within your stage of pregnancy.
If they find serious conditions, your application may also be postponed until after you've given birth.
History Of Pregnancy Complications
Life insurance companies may also want to know if you have had complications with previous pregnancies. This can include unusually high blood pressure, postpartum depression, and gestational diabetes. These conditions can increase your rates for up to five years after diagnosis.
Having a history of giving birth to triplets or more may also ramp up your life insurance rates.
Life Insurance Coverage Options For Pregnant Women
Life insurance can be split into two categories:
- Permanent life insurance: Permanent policies provide life insurance coverage for the rest of the insured person's life, provided that premiums are paid. Part of your payments will go to an investment account that builds cash value.
- Term life insurance: These policies offer coverage for a specific term period, typically from 1 to 30 years. While term life insurance policies are generally less expensive than permanent policies, they do not accumulate cash value.
Choosing the right life insurance product is crucial to securing your financial future. If you end up getting charged a higher premium because of your pregnancy, consider opting for a plan with a shorter term, then purchasing additional coverage later. You may also retake your medical exam after a year or two in order to lower your premiums.
If the life insurance company asks your application to be postponed due to your pregnancy, you can opt to get temporary life insurance. This will provide you with temporary coverage until your actual policy comes into effect.
It's always a good idea to seek assistance from a life insurance agent so you can shop around and get quotes from multiple companies. This will help you a lot when doing a life insurance comparison.
Life Insurance Riders To Consider
Life insurance riders are optional add-on benefits that you can get when you buy life insurance. If you're going to be a parent, here are some of the riders you should consider:
- Child rider: Having this rider means you can claim a small death benefit from the life insurance company if one of your children dies within the coverage period. The coverage amount can range from $1,000 to $25,000. Children from two weeks old up to 18 can be covered by this rider.
- Spousal rider: This rider pays out a death benefit if your spouse passes away within the coverage period. This can help you stay financially afloat while you're reevaluating your finances.
- Disability income rider: A disability income rider provides you with temporary income to pay for your family's needs if you're disabled and cannot work. You can choose from a short-term or long-term disability income rider.
FAQs on Life Insurance And Pregnancy
There are more factors to consider if you want to buy life insurance while pregnant. Here are answers to some of the most frequently asked questions on the topic.
Will the paramedical exam include a pregnancy test?
No. You will be required to take a blood test and a urine test during the medical exam, but this will not test for pregnancy.
You can inform a life insurance company about your pregnancy by saying yes to this question on your application. You should also confirm your status during your phone interview.
Will I be classified as a non-smoker if I stop smoking while pregnant?
No. People need to give up smoking (or using any nicotine product) during the last 12 months before they can be considered a non-smoker.
How should I answer the question about my alcohol consumption?
You should inform the insurer about your current level of consumption. You should also tell them if you've cut back on your consumption only because of your pregnancy.
What if I don't disclose my pregnancy?
Life insurance policies have a contestability period, which gives insurers time to assess if you were completely truthful during the application. This period begins from the first day that your policy was in force until two years later.
If you pass away during this period, the insurer may withhold the death benefit. They can also cancel your policy altogether.
Can I name my child as a beneficiary?
It's not advisable to name a minor as a beneficiary. Any minor who wants to file a claim will need approval from the court before a life insurance company can get the death benefit.
The best practice is to name your spouse or partner as a beneficiary. In fact, those living in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin are legally obligated to name their partner as the beneficiary.
Alternatively, you can name a legal guardian as a beneficiary. This can be your parents, siblings, or close friends. Make sure they are aware of their responsibilities as a legal guardian.
Finally, you can form a trust. This is a legal entity that will hold the money from your policy until your offspring is of legal age.
As always, seek advice from your lawyer before you decide who to name as a beneficiary if you want your minor children to use the proceeds from your policy.
Should a stay-at-home mom get life insurance?
Yes. A life insurance policy can be useful to you, even if you don't plan to work and earn income after having your baby.
Always remember that after you pass away, your family may need to pay for a childcare professional, a cook, or a housekeeper. Proceeds from your life insurance policy can help your family members pay for these added expenses.
Should I get life insurance for my child?
Child life insurance is a type of policy that pays out a death benefit in case an insured minor passes away during the coverage period. Since most children don't contribute to the household income, you should carefully consider if you should get this policy for your baby.
Getting child life insurance can help pay for their burial expenses, which costs roughly as much as an adult burial. It can also help replace your lost income in case you need to take time off work during the difficult grieving period.
I already have a group life insurance policy from my employer. Should I still buy a policy?
Yes. Most group life policies only pay out about 1 to 2 times your annual salary. If you want to provide your family with financial security for the next decade, you'll need an individual policy as well.
As always, consult your financial advisor to learn exactly how much coverage you need.
Final Thoughts
Major life events like adding a new member to the family should prompt you to consider getting life insurance. However, applying for life insurance while pregnant can be a little more complicated. You'll need to ensure that you're in good health and that you're not at high risk of experiencing any pregnancy complications.
If you're a new mom who is thinking about applying for a policy, get in touch with Wesley Insurance, LLC. We'll help you look for companies who will provide you with life insurance coverage, regardless of what stage you are in your pregnancy.