Life Insurance and Pregnancy
Given that the importance of life insurance grows with the size of your family, it is both common and reasonable for many parents to consider purchasing a policy during pregnancy.
Starting a life insurance policy while you are pregnant is much the same as doing so when you are not but some insurers may ask extra questions or have certain conditions placed on those expecting a child.
In this guide:
Why take out a life insurance policy when pregnant?
Starting a new family or increasing the size of an existing one will change your life in various ways, ushering in new experiences and new responsibilities on the part of you as parents.
A growing family has a growing list of financial responsibilities as well as emotional ones, from mortgage costs to childcare. A good life insurance policy can give you the peace of mind you need, leaving you safe in the knowledge that should the worst happen, your family will still be able to cope financially.
If you already have a life insurance policy active when you fall pregnant, you might want to consider changing the terms in order to make it more appropriate for your current situation. This may well involve increasing the pay-out and therefore increasing the cost of your premiums, but this is a worthwhile expense as you can’t put a monetary value on peace of mind and familial security.
You might even want to consider writing your policy in trust so that when you pass away; your money is left in a trust that will be paid out directly to your children when they reach a certain age.
Conditions on pregnant women taking out life insurance
Sometimes, if you open up a life insurance policy while pregnant, the insurance provider will put the policy on hold until the birth of your child, given the health complications that can arise in those expecting.
Conditions like anaemia are quite common during pregnancy and while they are almost always temporary, they may cause your insurer to worry and withhold cover until the birth. For this reason, it’s generally a good idea to start your policy as early as possible during your pregnancy, when such medical complications are less prevalent.
It is always absolutely crucial that you are completely transparent about any health of lifestyle issues that might affect the cost of your life insurance policy.
There are certain issues related to pregnancy, namely smoking and consumption of alcohol, that can become complicated here.
If you were a smoker and quit only when you discovered that you were pregnant, then you should be careful about what you put down on your insurance form when asked if you smoke. Often, in order to declare that you are not a smoker, an insurance provider will require that you have been free of tobacco and all nicotine products for at least 12 months. Bear in mind that this includes e-cigarettes, given the lack of knowledge regarding the long term effects thereof.
The same goes for alcohol consumption – even if you have stopped drinking altogether during the course of your pregnancy, you should be careful to give an accurate representation of your normal annual consumption when starting your policy.
If you are found to have given any inaccurate information, or to have withheld any information altogether when filling in your insurance application, you may find the whole policy invalidated and any pay out may be withheld.
Costs of Cover
The cost of a life insurance policy shouldn’t be affected by your pregnancy but rather will depend on various aspects of your lifestyle and health status generally.
If you have a family history of a certain condition like diabetes, or if you have or have had any serious medical condition in the past, you will likely find the cost of your premiums increased.
The same goes if your lifestyle lends itself to health issues. This may be because you smoke or it may be because your job or hobbies are particularly dangerous, if you regularly partake in sky diving for example.
Again, full disclosure is crucial here if you don’t want to invalidate your policy.