When you are expecting a child, you begin to think differently. Your world will change forever, and your focus becomes to ensure that your child gets a safe environment. It also includes your financial background.
Several times we hear people ask’ “Can I get life insurance if I am pregnant?”. The article provides insights on the available life insurance coverage options for pregnant women and answers some FAQs about life insurance for pregnant women.
Are You Eligible for Life Insurance if You Are Pregnant?
Yes, a pregnant woman is eligible for a life insurance policy, and it is not uncommon to get one, as you might think, because pregnancy now is not as dangerous as it used to be in the past.
Does Pregnancy Affect Life Insurance Rates?
Usually, insurance rates don’t change if you are pregnant. The insurance rates are affected by the factors that decrease your lifespan, such as heart diseases, smoking, or diabetes, whereas pregnancy isn’t considered dangerous.
However, once you enter the third trimester of your pregnancy, the insurance company won’t offer coverage. But your weight gain due to pregnancy might affect your insurance rates, so it might be suitable to wait.
Types of Life Insurance Policies for Pregnant Women
Generally, there are two types of life insurance available: permanent or term.
Permanent Life Insurance
Permanent life insurance consists of universal and whole life insurance policies along with other types of policies. Also, it provides coverage that lasts your entire life.
Permanent life insurance policies accumulate a cash value that you can utilize while you are still alive. It means that the money you invest into your insurance policy builds cash value over time. You can borrow the cash without paying taxes or interest on it.
The policy also provides a level premium along with guaranteed death benefits. You can utilize the accumulated cash to meet your living needs, such as covering college expenses, buying a house, retirement, or any emergency.
Permanent life insurance has different types, such as universal life or whole life. The types of permanent life insurance policies vary based on premiums and cash value accumulation. The premium amounts of permanent life insurance are high as compared to term life insurance. Many people consider term insurance as the best option as the coverage might add income protection or debt relief with time.
Consider a permanent life insurance policy if:
- Your financial needs are long-term
- You want flexibility in premium payments and death benefits
- You need a policy that accumulates cash value
Term Life Insurance
Term life insurance provides coverage for a specific period, ranging from one to thirty years. But it will only provide a death benefit if the policyholder dies during that time. Hence, it is a temporary form of life insurance.
The policy provides you with the most fantastic coverage at the lowest premium possible. Therefore, it is an excellent and cost-effective policy if you are tight on budget. Furthermore, if you know that your financial responsibilities will reduce soon, you might free up your funds using term life insurance.
But one of the drawbacks of selecting a term policy is you can’t get any money back unless you already picked a premium policy return or policy rider. Along with that, your term expires when your coverage expires. Permanent life insurance accumulates tax-deferred cash value over time other than your lifelong protection.
Consider term coverage if:
- Your financial need is temporary
- You have a tight budget but need an extensive coverage
- You want it to use for a specific purpose
How Much Life does Insurance for a Pregnant Woman Cost?
The cost of purchasing a life insurance policy, despite how far you are in your pregnancy or even if you are trying to become pregnant, will entirely depend on your age, gender, and health condition. It will also include the amount of coverage you need and the coverage period of the policy.