We often get asked “when do I need life insurance?” The short answer is any time someone is financially dependent on your income. For most people, this need becomes glaring once they are expecting a child.
While this is one of the most exciting times in any expecting parents life, it comes with significant expenses. Life insurance provides the easiest way to protect a family financially against the loss of a wage earner.
At Oliver Capital Management, we specialize in offering tailored life insurance solutions to meet the unique needs of expecting parents, helping you secure a financially sound future for your growing family. Here’s why life insurance while pregnant is so important, and what options might be best for you and your family.
Why Get Life Insurance While Pregnant?
Can I get life insurance while pregnant? Yes! Most companies will determine your health rating based on pre-pregnant metrics and a few do not always require blood and urine exams.
It is, however, best to apply sooner rather than later, since certain lab results may be elevated in the third trimester.
Financial Security
First and foremost, life insurance serves as a financial safety net for your family. Many families seek out life insurance while pregnant for that extra safety. In the unfortunate event of an untimely death, life insurance can help cover immediate expenses such as funeral costs, medical bills, and outstanding debts. More importantly, it ensures that your loved ones are not burdened financially, allowing them to maintain their standard of living and achieve long-term goals. It’s not always pleasant to think about, but it’s always critical to tackle the uncomfortable topic.
Cost-Effectiveness
It’s simple math – securing life insurance when you’re younger, and in better health, will normally mean lower premiums. Pregnancy is, for the most part, considered a healthy life stage, making it a great time to lock in affordable rates. As you get older, premiums will increase – due to heightened health risks and potential medical conditions. By purchasing life insurance while pregnant, you can take advantage of these cost savings and ensure comprehensive coverage at a lower cost. It’s a win-win!
Peace of Mind
When you’re pregnant, your life goes through many changes. Why not take this one off the table? Life insurance provides peace of mind. Knowing that your family will be financially protected in your absence allows you to focus on the joy of raising your child and nurturing your family – not the little, inconvenient financial details.
Future Planning
Life insurance is part of a comprehensive long-term family plan. A well-structured life insurance policy can help fund your child’s education, cover healthcare expenses, and support other future needs. Getting life insurance while pregnant allows you to take a proactive step in securing peace of mind.
What Insurance Is Best for Pregnancy?
Pregnancy can be a stressful time. Choosing the right life insurance policy can seem daunting – but understanding what’s out there can help you make a better decision.
Here are the main types of life insurance policies to consider:
Term Life Insurance
Term life insurance provides coverage for a specified period, typically ranging from 10 to 30 years.
For many, term life insurance is an affordable option that offers a straightforward death benefit without any cash value component. This type of insurance is ideal for expecting parents who want substantial coverage at a lower cost, ensuring financial protection during the early years of raising a child.
Whole Life Insurance
Whole life insurance offers lifelong coverage with a cash value component that grows over time. This type of policy is an option for families seeking out a guaranteed death benefit and allows you to accumulate cash value on a tax-deferred basis. Whole life insurance is best for families looking for permanent coverage and an investment component that can be used for future financial needs.
Universal Life Insurance
Universal life insurance combines the benefits of lifelong coverage with flexible premiums and death benefits. This type of policy allows you to adjust your coverage and premiums as your financial situation changes. Universal life insurance is perfect for expecting parents seeking flexibility in their life insurance policy, allowing them to adapt to their evolving needs over time.
How to Get Life Insurance While Pregnant
Ready to think about the next step, financially? Getting life insurance while pregnant involves several key steps. Here’s a step-by-step guide to help you navigate the process:
Think About Your Needs
Assess your financial needs and determine the appropriate coverage amount for your family. Consider factors such as your current income, outstanding debts, future expenses (e.g., your child’s education), and your family’s living expenses. This evaluation will help you choose a policy that provides adequate protection for your loved ones.
Compare Policies
Don’t just go with the first option – look at different life insurance policies and providers. Consider the coverage options, premium costs, policy terms, and any additional benefits or riders that may be available.
Health Considerations
Pregnancy can affect the life insurance application process and premiums. Insurers may consider factors such as your overall health, any pregnancy-related complications, and your due date. It’s critical to understand these considerations and be prepared for potential medical exams or additional documentation.
Apply for Coverage
Once you have selected a policy, it’s time to start the application process. You’ll need to complete an application form, providing necessary documentation (e.g., medical records), and undergo a medical exam if required. Be honest and thorough in your application to ensure accurate coverage.
Work with a Financial Advisor
Navigating the life insurance process can be complex, especially during pregnancy. Working with a financial advisor can provide valuable guidance and support. At Oliver Capital Management, our experienced advisors can help you assess your needs, compare policies, and navigate the application process smoothly and effectively.
Conclusion
Securing life insurance while pregnant is a crucial step in ensuring your family’s financial security and peace of mind. By obtaining life insurance while pregnant, you can lock in lower premiums, facilitate long-term financial planning, and enjoy the reassurance that comes with knowing your family is protected.
—
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure you are insurable. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges; if a policy is surrendered prematurely, there may be surrender charges and income tax implications. You should consult a qualified tax professional for tax advice on your own personal situation. All guarantees are based upon the claims-paying ability of the issuer.
6869293RG_Aug26