Life Insurance Pregnancy Tips in Canada

Pregnancy is a time of joy and anticipation as you prepare to welcome a new life into your family. With the excitement of baby showers, nursery decorating, and picking out adorable baby clothes, it’s easy to overlook the practical side of planning for your growing family’s financial future. One essential aspect of this preparation is considering life insurance coverage. As an expectant mother, it’s crucial to ensure your family is protected in case of unforeseen circumstances. Choosing the right life insurance policy can be a daunting task, but it’s a vital component of providing financial security for your loved ones. In this blog, we’ll explore the importance of life insurance for pregnant women, discuss various policy options, and offer guidance on choosing the best coverage for your unique needs. Read on to learn how you can secure your family’s future and gain peace of mind during this exciting and transformative time in your life.

In this article:

• Can you get a life insurance policy while pregnant?
• How does pregnancy affect life insurance?
  • Does your existing life insurance policy change when you have a baby?
  • Do I need to tell life insurance about pregnancy?
  • Is life insurance more expensive if you’re pregnant?
  • How important is weight gain while applying for life insurance?
• When to apply for life insurance if you’re pregnant
• What is the best insurance to have while pregnant?
• Life insurance riders to consider if you’re pregnant
• Why is Life Insurance Important for Pregnant Women?
• How Does Pregnancy Affect Life Insurance Premiums and Eligibility?
• How Can Pregnant Women Calculate the Amount of Life Insurance Coverage They Need?
• Frequently Asked Questions (FAQs) about life insurance and pregnancy

Case Study: Malak, a Pregnant Woman, Seeks Life Insurance Coverage

Background: Malak, a 30-year-old woman, is four months pregnant with her first child. She is married and works as a software engineer, earning $90,000 per year. Her husband, Ahmed, earns $70,000 annually as a marketing manager. They have a mortgage on their home and some outstanding student loan debt. Malak is looking for life insurance coverage to protect her growing family’s financial future in case of her untimely death. She is in good health with no history of medical complications or pre-existing conditions. Steps Malak takes to find suitable life insurance coverage:

1. Identifying the type of policy: Malak researches term life and whole life insurance policies. She opts for a term life policy because it offers affordable coverage for a specified period, aligning with her family’s financial obligations, such as paying off the mortgage and raising their child.
2. Estimating coverage amount: Malak calculates her life insurance needs by considering income replacement, debt, childcare expenses, future education costs, and inflation. She decides on a policy that offers 10 times her annual income, providing $900,000 in coverage.
3. Choosing policy term: Malak selects a 30-year term, ensuring coverage until her child is 30 years old and their mortgage is paid off.
4. Comparing premiums: Malak compares premium rates from different insurance providers. Despite being pregnant, she finds a company that offers competitive premiums without significantly increasing her rates due to her pregnancy.
5. Reviewing riders and additional benefits: Malak considers adding a waiver of premium rider and a child term rider to her policy, providing additional protection for her family and covering her child in case of her disability or the child’s death.
6. Underwriting process: Malak provides the necessary information during

Can You Get a Life Insurance Policy While Pregnant?

Pregnant applicants can get approved for life insurance coverage, though it’s better to get life insurance sooner than later. Insurance companies tend to evaluate pregnant applicants on a case-by-case basis, but generally, you’ll be able to get the same quotes as you would prior to your pregnancy if you:

• Are in the first trimester of pregnancy (weeks 1-12)
• Haven’t experienced any pregnancy-related complications
• Don’t have pre-existing conditions that could cause complications
• Have no history of complications from a previous childbirth

During the first trimester of your pregnancy, you are less likely to be experiencing pregnancy-related health complications, and would be closer to your regular weight (which is a factor in determining your rates), making your rates similar to rates you would receive prior to pregnancy. Weight gain during your pregnancy is expected and understood by your insurers, who will tend to make some adjustments for the weight gained during pregnancy when determining your rates. But the later into your pregnancy, the more at risk you are of developing health risks.

How Does Pregnancy Affect Life Insurance?

Pregnancy will affect your life insurance rates because of the impacts it may have on your health. Pregnancy can lead to health complications, like high blood pressure or gestational diabetes, and these conditions can impact you even after delivery.

Does Your Existing Life Insurance Policy Change When You Have a Baby?

If you become pregnant, your existing life insurance policy will not change, so you will continue to be covered. Insurance companies are fully aware that many people who buy life insurance do so with the intention of becoming pregnant.

In the event that you bought life insurance before becoming pregnant, you do not have to notify your insurer; nevertheless, you may want to consider making some modifications to your existing policy, such as increasing the coverage and identifying your child as the beneficiary of your policy.

Do I Need to Tell Life Insurance About Pregnancy?

It’s best if you tell your life insurance provider that you’re pregnant when you’re applying: if you don’t inform them and pass away during childbirth or during the policy’s contestability (deferral) period which is usually two years, your partner’s or beneficiary’s claim could be denied.

Is Life Insurance More Expensive if You’re Pregnant?

Life insurance can become more expensive the later you are in your pregnancy, and if you experience or develop health complications at the time you’re applying for life insurance. But if you’re healthy during your pregnancy, you can have standard or even preferred rates from insurers.

How Important is Weight Gain While Applying for Life Insurance?

Weight increase is normal during pregnancy, and insurance companies take this into account when determining coverage. Insurance companies assess your BMI even if you’re not pregnant and they also look at any heightened risk factors for diseases that could occur as a result of a change in your present weight. However, because weight gain is a natural component of pregnancy, any weight gain that is considered normal should not affect your coverage or life insurance cost. If your weight before conception makes your pregnancy high-risk, your insurer may too. Most insurance companies look at your weight prior to pregnancy when determining coverage. 

When to Apply for Life Insurance if You’re Pregnant

It’s always better to apply for life insurance sooner rather than later, especially while you’re planning ahead for your future, such as planning to have a family. The traditional life insurance application process usually takes around 5-6 weeks, and could take longer if there are unexpected delays. Applying earlier will usually allow for the cheapest premiums, with your health being less affected by your pregnancy versus during or after, but you can apply for life insurance at any point of your pregnancy.

Before pregnancy

If you’re planning to start a family, the best time to apply for life insurance is before you get pregnant. Health complications may arise during your pregnancy which can raise your premiums, but prolonging your life insurance will also affect your premiums due to age: life insurance rates increase every time you age. Even if you’re planning to start a family in the distant future, locking in a life insurance rate now that lasts for several years or decades will save you the stress in the future. Many insurers provide different lengths of term life insurance, ranging from 5 to 40 year terms for you to choose from.

During pregnancy

The further into your pregnancy you are when you apply for life insurance, the longer you may have to wait for approval of your application. The closer you are to your due date, the more likely it is for your application to be postponed or your premiums increased due to the health risks or complications that may rise during the later stages of pregnancy.

After pregnancy

If you’d like to wait to apply after you give birth or if your application was postponed, waiting until weeks 4-8 after you’ve given birth is the next best time to apply.

After 1-2 months, your weight will likely be lower than it was during your pregnancy and most health complications from the pregnancy, including elevated or high blood pressure and cholesterol, should be resolved. Some health complications such as postpartum depression or gestational diabetes can cause your premiums to be higher for five years after you experience them. Working with an insurance advisor can help you find a provider that is more flexible with these conditions.

What is the Best Insurance to Have While Pregnant?

There are several types of life insurance policies available for pregnant women, each offering different levels of coverage, flexibility, and investment options. Here are the most common types:

• Term Life Insurance: Term life insurance provides coverage for a specific period, usually 10, 20, or 30 years. It offers a guaranteed death benefit without any cash value component, making it the most affordable option for most people. If the policyholder outlives the term, the coverage ends, and they may need to purchase a new policy or convert it to a permanent policy.
• Whole Life Insurance: Whole life insurance provides lifelong coverage with guaranteed premiums, a guaranteed death benefit, and a cash value component. The cash value grows over time at a guaranteed rate, and policyholders can borrow against or withdraw from it, subject to certain conditions. Whole life insurance is more expensive than term life but offers additional financial benefits and stability.
• Universal Life Insurance: Universal life insurance is a flexible type of permanent life insurance, offering adjustable premiums and death benefits. It also has a cash value component, which grows based on market interest rates. Policyholders can adjust their premium payments and death benefits according to their needs, but this flexibility often comes with higher costs and potential risks tied to market performance.
• Variable Life Insurance: Variable life insurance is another type of permanent life insurance that allows policyholders to invest the cash value component in various investment options, such as stocks, bonds, and mutual funds. This provides the potential for higher returns, but it also comes with increased risks due to market fluctuations. Variable life insurance policies offer flexibility in premium payments and death benefits, but they can be more expensive and complex compared to other life insurance options.
• Indexed Universal Life Insurance: Indexed universal life insurance is a type of permanent life insurance that ties the cash value component’s growth to a specific market index, such as the S&P 500. It offers the potential for higher returns than traditional universal life insurance, while still providing downside protection through guaranteed minimum interest rates. Policyholders can adjust premiums and death benefits, but the policy’s performance is subject to market conditions.
• No Medical Exam Life Insurance: This type of life insurance policy does not require a medical exam for approval, making it an attractive option for pregnant women who may have difficulty getting approved for a traditional policy due to pregnancy-related health changes. No medical exam policies typically have higher premiums and lower coverage amounts compared to policies requiring a medical exam.
• Group Life Insurance: Pregnant women who are employed may have access to group life insurance through their employer. This type of coverage is often more affordable and easier to obtain because it’s offered as part of a benefits package. However, the coverage amount may be limited and may not be sufficient for the individual’s needs. Additionally, coverage usually ends when the individual leaves the employer.

When choosing a life insurance policy, pregnant women should consider factors such as their current and future financial needs, affordability, the policy’s flexibility, and the potential for cash value growth. Consulting with a qualified insurance agent or financial advisor can help determine the best option based on individual circumstances.

Life Insurance Riders to Consider if You’re Pregnant

Life insurance riders are optional additions to your life insurance policy, designed to provide additional protection for different circumstances. Many are great choices for those starting a family, or those who are pregnant.

Child insurance rider

Many insurers offer child insurance as a rider for policies, which allows parents to insure their children without having to purchase a completely separate life insurance policy. One rider covers all your current and future children, and typically costs a flat fee.

Children’s Critical Illness Rider

Some insurers will also offer a children’s critical illness rider, which allows parents to insure their children in case of critical illness without having a separate policy.

Disability rider

If you become injured and can’t work, a disability rider will provide a small payout to cover your expenses.

Why is Life Insurance Important for Pregnant Women?

 Life insurance is important for pregnant women for several reasons, as it provides financial protection and peace of mind during a critical time in their lives. Here are some key reasons why life insurance is essential for pregnant women:

1. Financial security for the family: If the mother were to pass away during pregnancy or childbirth, life insurance would provide a financial safety net for the surviving family members. It can help cover living expenses, childcare, education, and other costs, ensuring that the family can maintain their standard of living.
2. Income replacement: In the event of the mother’s untimely death, life insurance can replace her income, especially if she is a primary breadwinner or contributes significantly to the family’s finances. This can help alleviate the financial burden on the surviving spouse or partner.
3. Coverage for pregnancy-related complications: Some life insurance policies offer riders or additional benefits that can provide financial support in case of complications during pregnancy or childbirth. These benefits can help cover medical expenses or loss of income during recovery.
4. Debt repayment: Life insurance can help pay off outstanding debts, such as mortgage, car loans, or credit card balances, ensuring that the family doesn’t face additional financial stress.
5. Funeral expenses: The death benefit from a life insurance policy can also cover funeral and burial expenses, relieving the family of these costs during an already challenging time.
6. Future planning: Life insurance can help secure the child’s future by providing funds for college education, wedding expenses, or even a down payment on a house.
7. Peace of mind: Knowing that their family is financially protected in the event of their death can give

How Does Pregnancy Affect Life Insurance Premiums and Eligibility?

Pregnancy can impact life insurance premiums and eligibility in several ways. While pregnancy itself is a natural and generally low-risk event, it can lead to certain health changes or complications that may affect an insurance company’s assessment of risk.  Here are some ways pregnancy can influence life insurance premiums and eligibility:

1. Health changes: Pregnancy may cause temporary health changes, such as increased blood pressure, weight gain, or gestational diabetes, which could affect an underwriter’s evaluation of an applicant’s health. In most cases, these changes are not severe enough to significantly impact premiums or eligibility, but in some cases, they might lead to higher premiums or even a declined application.
2. Pre-existing conditions: Pregnant women with pre-existing health conditions, such as hypertension or diabetes, may face higher premiums or difficulty obtaining coverage. Insurance companies consider these factors when determining the risk associated with insuring an applicant.
3. Complications: If a pregnant woman experiences complications during her pregnancy, such as preeclampsia, placenta previa, or preterm labor, these issues may lead to higher premiums or even a postponed or declined application. In some cases, insurance companies may request the applicant to reapply after the pregnancy is over and the complications have been resolved.
4. Timing: The stage of pregnancy can also influence life insurance premiums and eligibility. Applying for life insurance during the first or second trimester may result in more favorable rates compared to applying during the third trimester when the risk of complications is higher.
5. Lifestyle factors: Pregnant women who smoke, consume alcohol, or use drugs may face higher premiums or difficulty obtaining coverage. These factors can increase the risk of pregnancy-related complications and impact the overall health of the applicant. Insurers may require that the applicant quit these habits and maintain a healthier lifestyle before reconsidering their application.
6. Age: Age can also influence life insurance premiums and eligibility during pregnancy. Older pregnant women, especially those over 35, may be considered higher risk due to the increased likelihood of pregnancy-related complications. As a result, they may face higher premiums or more stringent underwriting requirements.
7. No medical exam policies: Pregnant women who opt for a no medical exam life insurance policy may face higher premiums due to the limited information available about their health. While these policies can be more convenient and easier to obtain, they generally come with higher premiums and lower coverage amounts compared to policies requiring a medical exam.
8. Despite these potential challenges, it’s still possible for pregnant women to obtain life insurance coverage at reasonable rates. To improve their chances of securing favorable premiums and eligibility, pregnant women should consider applying for coverage as early as possible during their pregnancy, maintaining a healthy lifestyle, and working with an experienced insurance agent who can help navigate the underwriting process and find the most suitable policy for their needs.

How Can Pregnant Women Calculate the Amount of Life Insurance Coverage They Need?

Calculating the amount of life insurance coverage needed during pregnancy involves considering current and future financial obligations, as well as any potential income gaps. Here are some steps pregnant women can take to estimate their life insurance needs:

1. Income replacement: Determine the amount of income you would like to replace for your dependents in case of your untimely death. Consider your current salary and any additional sources of income, such as bonuses or investment income. A common recommendation is to replace 5-10 times your annual income, depending on your family’s financial needs.
2. Debt and expenses: Add up your outstanding debts, such as mortgages, car loans, student loans, and credit card balances. This will help ensure your family can pay off these obligations without financial strain. Additionally, consider any other significant expenses, like funeral and burial costs.
3. Childcare and education: Consider the costs of childcare, particularly if you are the primary caregiver. Estimate the expenses for daycare, nannies, or after-school programs. Additionally, if you plan to fund your child’s education, factor in the costs of tuition, books, and other related expenses for private schooling, college, or university.
4. Future financial goals: Think about any long-term financial goals you have for your family, such as funding your spouse’s retirement or providing support for aging parents. Calculate the amount needed to achieve these goals and include it in your coverage calculation.
5. Adjust for inflation: Consider the impact of inflation on your family’s future financial needs. Over time, the purchasing power of money decreases, so it’s essential to factor in a reasonable rate of inflation (often around 2-3%) when calculating the required coverage.
6. Existing assets and insurance: Subtract any existing assets, such as savings, investments, and retirement accounts, from the total calculated financial need. Also, consider any existing life insurance policies, like employer-sponsored coverage, and subtract their value.
7. Review and adjust: Periodically review and adjust your coverage as your family’s needs change. Events such as the birth of a child, a change in income, or the purchase of a new home may necessitate adjustments to your life insurance policy.

By following these steps, pregnant women can better estimate the amount of life insurance coverage they need to protect their family’s financial future. 

Conclusion

Embracing the journey of motherhood is both exciting and challenging. As you prepare to welcome a new member into your family, it’s crucial to plan for their financial well-being and security. Life insurance is a key component of this planning process, providing a safety net for your loved ones in case of unforeseen events. By understanding the different types of policies available, calculating your coverage needs, and keeping your policy updated as your family grows, you can make informed decisions that protect your family’s financial future.

Remember that each family’s situation is unique, and it’s essential to choose a life insurance policy tailored to your specific needs. Don’t hesitate to consult with insurance professionals or financial advisors to help guide you through the process. By taking these essential steps, you can focus on the joys of motherhood with the peace of mind that comes from knowing your family is well-protected, no matter what life has in store.

Frequently Asked Questions (FAQs) About Life Insurance and Pregnancy

Protect you and your loved ones

Whether you’re starting a family now or in the distant future, getting a life insurance policy should be a part of your financial plans. With the premium price increasing every year you grow older, getting a policy now can protect you and your loved ones during your pregnancy, and many years after. Each company treats pregnancy differently, but working with a life insurance advisor can help you find the right solution for what you’re looking for and need.

At Protect Your Wealth, we work with and compare policies and quotes from the best life insurance companies in Canada to ensure the best solution for you and your needs. No matter what type of insurance you’re looking for, whether it’s no medical life insurance, term life insurance, or permanent life insurance, we can help you build the best package to give you the protection you and your family needs.

Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, Alberta, and British Columbia, including areas such as Oakville, Kitchener, Calgary, and Burnaby.