Pregnancy And Life Insurance: What Expectant Mothers Should Know

Pregnancy is an exciting time, but it can also be a period of uncertainty. As your body changes, you may wonder about the impact on your life insurance application. The good news is that you can still apply for life insurance while pregnant, but there are some important factors to consider. Firstly, it's crucial to be transparent about your pregnancy during the application process. While it may not affect your approval chances, it's considered a medical condition by insurers, and complications could lead to higher premiums or postponed approval. The best time to apply is during the first trimester, as pregnancy-related health factors are less likely to affect your application.

Pregnancy as a pre-existing condition

Pregnancy is considered a pre-existing condition by insurers, and it's important to disclose your pregnancy during the application process. While it may not impact your approval chances, it could affect your premium rates.

• Health Factors: Pregnancy-related health complications such as gestational diabetes, preeclampsia, high blood pressure, or other conditions can increase your premiums or lead to postponed approval until after delivery. It's important to be transparent with your insurer about any health issues during pregnancy.
• Timing of Application: The best time to apply for life insurance is before becoming pregnant, as it allows you to lock in lower rates. However, if you're already pregnant, applying early in your first trimester is recommended. The further along you are in your pregnancy, the more likely it is for pregnancy-related factors to influence your premiums.
• Underwriting Criteria: To qualify for the preferred risk category, insurers typically look for applicants under 40 years of age, with no history of pregnancy complications, no high-risk pregnancy, and normal pregnancy weight gain as assessed by a physician.
• Weight Considerations: Insurers vary in their approach to weight during pregnancy. Some use pre-pregnancy weight, current weight, or an average of both. Shopping around and comparing rates from different insurers is beneficial to find the most favourable terms.
• High-Risk Pregnancy: If your pregnancy is considered high-risk or you're experiencing complications, insurers may defer issuing a policy until after you've given birth. Common high-risk factors include weight gain, high blood pressure, gestational diabetes, elevated cholesterol, multiple pregnancies, and a history of postpartum depression.
• Re-evaluation After Pregnancy: If you face higher premiums during pregnancy, you can re-apply or request a rate review after giving birth. Once your weight, cholesterol, and blood pressure return to normal, you may qualify for lower rates.

Choosing beneficiaries

When choosing beneficiaries, many pregnant people name their partners. This way, their partner can use the funds to cover living expenses and care for the child if the policyholder passes away. There are ways to name children as beneficiaries, but there are legal complications that prevent you from doing this directly. Instead, you can use an irrevocable life insurance trust (ILIT) and name your children as the trust's beneficiaries. This can help protect your children in case your partner also passes away or if you want more control over how the death benefit is used.

You can also set up a trust or guardian arrangement for minor children as beneficiaries to ensure smoother access to funds. As part of their duties, the guardian can oversee the payout from your policy and care for your children until they reach the legal age, which is 18 in most states.

Life insurance rates

Pregnancy is considered a medical condition by insurers, so it is possible that your premium rates may be higher than if you were not pregnant. However, this is not always the case, and it is still possible to get life insurance while pregnant. The best time to apply for life insurance is before you become pregnant, as this can lock in lower rates, especially if you are in good health. If you are already pregnant, applying in your first trimester is the best option, as pregnancy-related health factors are less likely to affect your application at this stage.

Pregnancy-related health factors that can affect your life insurance rates include elevated blood pressure, higher cholesterol, and weight gain. If you have a history of consistently healthy blood pressure, cholesterol, and weight before pregnancy, insurers may take that into account, which may help in your underwriting evaluation. Other factors that may increase the risk assessment for insurers include age, particularly for those experiencing a "geriatric" pregnancy (typically defined as age 35 or older), previous pregnancy complications, or being pregnant with multiples.

In terms of weight, insurers vary in their approach. Some assess only your current weight, while 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 their evaluation of your specific situation.

If you encounter any complications during your pregnancy, such as gestational diabetes or high blood pressure, your insurer may suggest waiting until after you have given birth and your body has had time to recover. However, given the importance of life insurance for parents, it may be wise to accept a policy even if it means higher premiums temporarily. Once you are past the postpartum period, you may be able to reapply or request a rate review to qualify for lower rates based on your improved health.

In summary, while pregnancy can affect life insurance rates, the impact varies depending on the insurer and your health profile. It is important to be transparent with your insurer and disclose your pregnancy and any related health conditions during the application process to ensure a smooth approval process and safeguard against potential issues down the road.

Application timing

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.

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.

If you’re in the third trimester, some insurers might postpone your coverage until after you’ve given birth.

The life insurance application process can take up to four to six weeks, but could take longer if your insurer requests more information from your doctor to confirm your health details.

Health complications

Pregnancy is considered a medical condition by insurers, and while it does not necessarily impact your approval chances, it may affect your premium rates. Complications or signs of a high-risk pregnancy may result in higher premiums or even postponed approval until after delivery.

• Gestational diabetes
• High blood pressure
• Preeclampsia
• Elevated cholesterol
• Pregnancy at an older age (typically defined as 35 or older)
• Previous pregnancy complications
• Multiple pregnancy (twins, triplets, etc.)
• History of postpartum depression

If you develop any of these complications during pregnancy, insurers may defer issuing a policy until after you have given birth and your health has stabilised. It is important to be transparent with your insurer and disclose any health conditions during the application process to ensure a smooth approval and safeguard against potential issues later on.

In summary, while it is possible to obtain life insurance during pregnancy, health complications may affect your application and result in higher premiums or delayed approval.

Frequently asked questions