Buying life insurance when you’re pregnant should be the first gift you give to your child

BY ANDREW STEWART

It was unexpected; you’re excited, scared and nervous all at the same time. What will your partner say? Will they be happy? What will your parents think? Are you really ready for this? There are a million and one questions to be answered and just as many feelings to sort through when a woman finds out she is pregnant.

Adding a baby will give a family many reasons to accomplish many great things and one of those is to finally get your financial house in order. Life insurance is one of those things people know they should have. It’s always on a list of grown-up readiness to-dos, right alongside having a will and an emergency fund, and regularly contributing to a retirement account. But a common question is should you apply for life insurance coverage if you are pregnant? Many people don’t even think about life insurance until they already have children, but it’s a good idea to plan for the future by buying life insurance coverage when you’re pregnant or even before.

So let’s answer the first and most obvious question. Yes, most pregnant women can still qualify for life insurance even while pregnant. I have successfully worked with many pregnant applicants getting them approved for life insurance coverage. Being pregnant (probably) won’t affect your premiums but a common concern is that the insurance company may adjust your price because of the changes to your body. Well, good news your pregnancy won’t be held against you when you get to the all-important life insurance medical exam. Insurers make some adjustments for normal weight gained during pregnancy, along with some expected differences in lab results. And like anyone else, pregnant women may be eligible for higher rate classes, depending on their health.

That being said pregnancy can lead to health complications, like high blood pressure or gestational diabetes, and those conditions could impact your life insurance premiums even after delivery. If you have a high-risk pregnancy or complications during pregnancy, the life insurance company may post-pone issuing a policy until after delivery.

It helps to apply sooner rather than later. If you develop complications later in the pregnancy, it could make it more expensive to get life insurance coverage. There is no difference in the application process either. Whether you completed a quote online first and then looked for guidance or started working with an advisor from the beginning. You will either have a phone interview to answer medical questions or the nurse visiting you at home will ask them. A standard exam will check your vitals, record height and weight; collect blood and urine samples.

Now here is something to think about and consider. Even if you’re a stay-at-home parent and don’t contribute financially to the household income, you should still consider obtaining coverage. Realistically, a surviving parent will need to make life adjustments to ensure adequate care for their child or children such as hiring a caretaker or paying for daycare, or taking time off from work.

There are so many things that come with a new baby. Deciding on a name, nursery items to buy, sleep schedules, the list goes on. There is one item that is hard to put a price on and one any parent would put tops on the list and that’s having peace of mind. Being able to check life insurance off the to-do list can bring some of that.

Choosing beneficiaries is also important to consider. I always recommend naming an alternate beneficiary who would be in charge of taking care of your child if anything happened to you and your spouse at the same time. Generally, this is the child’s grandparents, aunt or uncle. You’ll want to choose someone you trust deeply, as he or she will be responsible for managing the payout until your beneficiary is of age.