Life insurance while pregnant
Key takeaways
- Both parents, including stay-at-home parents, should consider life insurance coverage when expecting.
- Life insurance applications are generally accepted during pregnancy, though some health factors can affect rates.
- Setting up a trust or guardian arrangement for minor children as beneficiaries can ensure smoother access to funds.
- A child rider on your policy can offer coverage for your child soon after birth, adding valuable protection.
Planning for a family brings both excitement and new responsibilities, and life insurance is a big one that often gets overlooked — especially for women. According to the 2024 LIMRA and Life Happens Insurance Barometer Study, only 46 percent of women report having life insurance, compared to 57 percent of men. This 11-point gender gap is the widest it’s ever been in the study’s 14-year history. That disparity leaves many families financially vulnerable should the unexpected happen.
When it comes to pregnancy, the importance of life insurance becomes even more pressing. Whether you’re planning to be the primary earner or a stay-at-home parent (yes, stay-at-home parents have a need for life insurance, too), having a policy in place offers a vital layer of financial security for your family. Here’s what expecting parents should know to help protect their family financially.
Can you get life insurance while pregnant?
Yes, it’s entirely possible to get life insurance while pregnant, but it’s important to understand that pregnancy is often treated as a pre-existing condition by insurers. Just like with other health factors, your pregnancy can influence the approval process, coverage options and even the rates you’re offered.
Underwriters may look at specific health indicators related to pregnancy, such as gestational diabetes, preeclampsia or other pregnancy-related conditions. While a healthy pregnancy may not impact rates much, certain health complications could lead to higher premiums or even postponed approval until after delivery.
Being transparent with your insurer is essential. Disclosing your pregnancy and any related health conditions during the application process not only helps ensure a smooth approval but also safeguards against potential issues down the road, like complications during the policy’s contestability period.
When to apply for life insurance if you’re pregnant
Ideally, the best time to apply for life insurance is before you become pregnant. Insurers typically consider pregnancy a medical condition, which may impact your premium rates. Securing life insurance ahead of time can lock in lower rates, especially if you’re in good health. However, if you’re already pregnant, applying early in your first trimester is typically the best option, as pregnancy-related health factors are usually less likely to affect your application at this stage.
If you encounter any complications, such as gestational diabetes or high blood pressure, your insurer may suggest waiting until after you’ve given birth and your body has had time to recover. However, given the importance of life insurance for parents, it can be wise to accept a policy even if it means higher premiums temporarily. Once you’re past the postpartum period, you may be able to reapply or request a rate review to see if you can qualify for lower rates based on your improved health.
How pregnancy impacts life insurance rates
Pregnancy can affect life insurance rates in different ways, depending on the insurer and your health profile. Common changes during pregnancy — such as elevated blood pressure, higher cholesterol and weight gain — are expected, especially in the later trimesters. However, if you have a history of consistently healthy blood pressure, cholesterol and weight before pregnancy, insurers will typically take that into account, which may help in your underwriting evaluation.
Other factors, however, may increase the risk assessment for insurers. These include age, particularly for those experiencing a “geriatric” pregnancy (typically defined as age 35 or older), previous pregnancy complications or being pregnant with multiples, like twins or triplets. Each of these can add layers of risk, which insurers factor into their premium calculations.
When it comes to weight, insurers vary in their approach. Some assess only your current weight, others look at your pre-pregnancy weight and some take an average of the two. This variability makes it beneficial to shop around and compare options, as some insurers may offer more favorable rates based on how they evaluate your specific situation.
Choosing a beneficiary when you are pregnant
Many parents name their spouse or partner as the beneficiary of their life insurance. If you were to pass away, your spouse or partner may be the most likely person to whom parenting responsibilities — and thus an increased financial strain — will fall. Giving your partner the death benefit of your policy may help ensure that they are able to care for your child without a significant financial burden.
You can also name your child (or children) as your beneficiaries, but naming minor children as your heirs can lead to legal complications. Instead, you can designate a trusted legal guardian who will ensure that your children benefit from your life insurance policy if both you and your partner are gone. As part of their duties, the guardian can oversee the payout from your policy and care for your children until they reach legal age, which is 18 in most states.
For even more control over how the benefits are used, you might consider setting up a trust. A trust can manage the life insurance proceeds for your child’s benefit, allowing you to specify how and when the funds should be accessed. For more information, consider consulting a local estate planning attorney to discuss whether a trust is the right option for your family.
How to customize your insurance coverage if you are pregnant
When choosing life insurance during pregnancy, start by selecting the type of policy that best meets your family’s needs. There are two primary options: term and permanent life insurance. Both can be customized, though they differ in their coverage duration, cost and the additional options available.
Term life insurance
Term life insurance provides coverage for a set period, such as 10, 20 or 30 years, making it a more affordable option. The term length you choose should ideally align with major life goals, like covering expenses until your child reaches adulthood or paying off a mortgage. If you’re planning to stay home with your child, term insurance can help replace lost income or financial contributions during those years. Once the term expires, you may have the option to renew or convert to a permanent policy, though the premiums may increase with age.
Permanent life insurance
Permanent life insurance offers lifelong coverage, lasting as long as you pay the premiums and typically up to a coverage age of 95 to 121. This option may appeal to those looking for a policy that builds cash value — a savings-like component that grows over time and can be accessed for future expenses, like education costs.
Permanent policies come in a few varieties:
- Whole life insurance: Provides consistent premiums, guaranteed death benefits and cash value growth at a fixed rate.
- Universal life insurance (UL): Offers flexible premiums and death benefits, with cash value that grows based on interest rates or other investments.
- Variable life insurance (VL): Allows investment of the cash value in stock and bond subaccounts, offering growth potential but also risk, as cash value can fluctuate with the market.
Each type has distinct benefits and considerations, so it’s wise to review them with an insurance professional to understand how they align with your goals.
Additional customization: Choosing riders
Many life insurance policies allow you to add riders, or policy enhancements, to tailor coverage further. Some riders are included at no extra cost, while others may require an additional premium. Here are a few common riders that might be especially relevant for expectant parents:
- Child rider: Provides a small death benefit to help cover funeral costs if your child passes away, offering some financial peace during a difficult time.
- Waiver of premium for disability: Waives premium payments if you become disabled and are unable to work, ensuring your coverage continues even if income is temporarily impacted.
- Accidental death benefit: Increases the death benefit if you pass away due to an accident, providing extra security.
- Critical or chronic illness rider: Allows you to access a portion of your death benefit if diagnosed with a serious illness, which could help cover unexpected medical costs.
- Accelerated death benefit: Allows you to access a portion of your death benefit if you’re diagnosed with a terminal illness, helping with medical expenses or other needs.
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