Major life events often prompt us to reevaluate our financial plans, and having a baby is one of these pivotal moments. Your priorities shift and safeguarding their future becomes a priority.
Life insurance is frequently overlooked while preparing for a baby. Many wonder “Can I even get life insurance while pregnant?” And the answer is likely Yes.
In this comprehensive guide, we’ll discuss the ins and outs of obtaining life insurance during pregnancy, including the best time to apply, the factors affecting your rates, and how various carrier guidelines can impact your options.
Table of Contents
- Why Get Life Insurance During Pregnancy
- Factors That Affect Life Insurance
- How Pregnancy Can Affect Your Rates
- Financial Planning for Both Parents
Why Get Life Insurance During Pregnancy
Life insurance is an essential financial safety net for your loved ones, especially as your family grows. From diapers to college tuition, the arrival of a new baby introduces additional financial responsibilities that life insurance can help cover in case of unexpected events.
Reasons to get life insurance now:
- Financial Security: Provides a safety net for your family in case of your premature death.
- Lower Rates: Applying when you’re younger and healthier can lock in more favorable premiums.
- Estate Planning: Allows you to leave a financial legacy for your child.
- Dual Protection: Life insurance can cover both income-earning and stay-at-home parents, recognizing the financial value of both roles.
- Peace of Mind: Offers emotional comfort knowing your family will be financially protected.
Timing: When Should You Apply?
Though you can’t predict every life event, getting life insurance before starting a family could save you money and make finding coverage less challenging. However, if you’re currently expecting, you can still likely find coverage. Applying early in your pregnancy often leads to more favorable rates.
Factors That Affect Life Insurance Cost
Your pregnancy status is just one of many factors that can influence the cost of your life insurance policy. When determining your premium, insurance companies look at a range of factors such as:
- Age: Younger applicants usually get better rates.
- Health Status: Existing health conditions can raise your premium.
- Type of Policy: Term life policies tend to be cheaper than whole life.
- Coverage Amount: The higher the death benefit, the higher the premium.
- Term Length: Longer terms may result in higher premiums.
Pregnancy falls under the health status category.
See what you’d pay for life insurance
How Pregnancy Affects Your Premium
It’s typically easier and more affordable to get life insurance during your first or second trimester of pregnancy. As you progress further, securing a policy can get more challenging, particularly if you develop pregnancy-related conditions like high blood pressure and gestational diabetes. Even so, getting life insurance in your third trimester is still possible.
Having a record of regular doctor visits and cholesterol tests from before or early in your pregnancy can work in your favor. Life insurance companies will examine these medical records to determine your risk level. If your cholesterol levels are elevated due to pregnancy, providing documentation can help you secure a better rate.
Each insurance company has its own set of guidelines, but many are willing to offer affordable rates if your pregnancy is progressing normally and you’re carrying only one child. To qualify for a “Preferred” risk category, you’ll generally need to meet certain criteria:
- Current age under 40
- Not considered a high-risk pregnancy
- No history of pregnancy complications
- No history of medical problems that require on-going monitoring or treatment
- Normal pregnancy weight gain as assessed by your physician
- Normal height/weight, blood pressure, and lab results
However, if your pregnancy is considered high-risk or you’re experiencing complications, insurers may defer issuing a policy until after you’ve given birth.
Navigating Insurance Carriers
Life insurance policies for pregnant women can vary significantly from one insurance company to another. For instance, some insurers may base your premium on your weight before you became pregnant, while others might use your current weight, which could be much higher due to pregnancy.
To ensure you get the best rate, work with an independent broker, like Quotacy. A broker can shop your case to find the best carrier for your circumstances.
Learn more about the top-rated life insurance companies Quotacy works with.
Life Insurance and Pregnancy: A Real-Life Case Study
Jennifer, a Quotacy customer, 29 years old, sought a term life insurance policy during her third trimester. Initially, she chose a company that offered her the third-best risk class. However, her broker advised her to switch to a different insurer, one known for using pre-pregnancy weight for assessments. Following this advice, Jennifer received a better risk classification and saved $331 annually.
Reassessing Your Policy After Pregnancy
If you get a policy while pregnant and face higher premiums, you have the option to re-apply later, typically 1-2 years after activation. You won’t usually need to fill out a new application but will have to undergo another medical exam. This could lead to better rates if your weight, cholesterol, and blood pressure have returned to normal post-pregnancy.
You can also choose to apply for a new policy altogether, although this would require completing a new application and medical exam. Waiting at least six weeks post-delivery is advised, as insurers look out for postpartum depression.
| Tip: Keep your existing life insurance policy active until your new one is fully in place. |
Financial Planning for Both Parents
Life insurance is crucial for both parents. A common misconception is that only the income-earning parent needs coverage. This notion falls short of capturing the complexity and shared responsibilities of modern families.
The Comprehensive Value of Both Parents
Whether a parent earns an income outside the home or dedicates their time to childcare and household responsibilities, each role carries substantial financial value.
In the case of stay-at-home parents, their contributions—from child-rearing to managing the home—are invaluable and would be expensive to replace. Similarly, mothers, especially those expecting, put forth immense time and energy into the well-being of the family, a contribution that also bears financial weight.
Shared Financial Commitments
Today’s families usually share the financial load, covering everything from mortgage payments and utility bills to healthcare and education expenses. When both parents contribute to these shared responsibilities, the loss of either would undoubtedly impose a financial hardship on the surviving parent and family. This underscores the need for a well-rounded financial plan inclusive of life insurance, offering peace of mind and security for all involved.
Get Life Insurance Quotes Today Through Quotacy
As you prepare for the joy and challenges of parenthood, it’s the ideal moment to reevaluate your financial plans, including life insurance. Given the varied guidelines among insurance carriers, working with an independent broker like us can make all the difference.
We offer you access to a range of top-rated insurance companies and don’t limit you to just one option. Our aim is to find the best fit for your unique needs, especially during your pregnancy. We’ll shop around to ensure you get the most favorable rates.
Our primary duty is to serve you, the client. We’re committed to acting in your best interests, helping you secure the best coverage for your growing family.
There’s no better time than the present to secure your family’s financial future. Life is unpredictable, making the case for getting life insurance as soon as possible even stronger.
Start the process by getting a free term life insurance quote. Your Quotacy agent will work to get you the best coverage option and keep you updated every step of the way.
I had been diagnosed with gestational diabetes when pregnant with my son two years ago. My father had been diagnosed with diabetes so the preferred rate I was given and the one that was given after has doubled. Is there a way to get a better rate later – if I don’t god will get diagnosed with diabetes?
Hi MJ,
Thank you for your question! There are similarities and differences in how life insurance companies underwrite gestational diabetes. To qualify for Preferred (or better) the vast majority of insurance companies will want to see a period of time to go by after the baby is born to see that the diabetes has resolved after birth. The waiting period varies by insurance company but typical ranges are anywhere from 2 to 10 years. During the waiting period a Standard offer is likely the best case scenario.
Not all insurance companies are created equal though; one of the life insurance companies that we work with is able to offer Preferred and occasionally Preferred Best rates immediately after giving birth assuming you qualify otherwise and assuming the gestational diabetes resolved after birth. All lab tests and doctor notes must show that you aren’t diabetic any longer and you must qualify for the Preferred rate class otherwise.
Hello
My wife and I are shopping for life insurance and my wife is pregnant with our second chilld. The baby is due Nov 6th 2015. I got a preferred plus rating and my wife was given a standard rating since she has gestational diabetes. Also her dad is diabetic and her mother passed away at age 42 with non-genetic disease. So our agent is pressuring us to take her policy too as he says we can never get a better rating for her even after childbirth. I am thinking of waiting 6-8 months for my wife to try an get a better rating. What do you think is the best strategy for us in this situation?
Thanks for your advice.
-Gopala
Hi Gopala,
First off, congratulations on baby #2! I’m glad to hear you and your wife are buying life insurance. It’s so important especially if you have little ones who depend on you.
Secondly, because your wife’s due date is so close we recommend you accept the Standard rated policy instead of waiting. It’s important that both of you be covered sooner rather than later because you never know what life may bring.
Most life insurance companies will offer Standard for clients who have had gestational diabetes within the past 10 years, and after that 10 year period they can be considered for Preferred rates. After your wife gives birth and assuming her blood sugar returns to normal, she may get better than Standard. But most will give her Standard rates. The concern carriers have is that she is at an increased risk to develop diabetes later in life, so that is why they have the 10 year waiting period. It also generally gets the client past the age when she is likely to have more children.
After your wife’s second policy anniversary, you can then ask for a rate review to see if she can be approved for Preferred rates. The only other piece of the strategy that could save you money would be to make sure that the standard rates are competitive in the market. Even though she will be underwritten at a Standard rate, insurance carriers have different pricing models for this standard classification. But even if you choose to shop for the best standard rate, our recommendation is for you to take the policy being offered her before you continue shopping and make sure that your family is covered in the event of a tragedy.