Having children is a major life event that drives people to consider getting term life insurance. When you have loved ones who depend on you financially, term life provides a cost-effective way to protect them from financial hardship if you were to suddenly pass away. If you plan on having children, many people seem to wait until they are pregnant or had the baby already to purchase life insurance.
Though it would be ideal to purchase life insurance before you have a baby, that is far from reality with most people. Here we touch upon applying for life insurance while pregnant and if you can expect a life insurance company to approve you for a policy while pregnant.
When You Apply for Term Life Matters the Most
Underwriting varies among life insurance companies, most will consider you for a term life policy if you apply during your first or second trimester. At that stage, pregnancy weight gain won't have reached its full effect. Provided the results of your paramedical exam and other factors are favorable, you might even get a preferred rating. It is best to apply as early as possible after getting pregnant.
Pregnancy complications will affect your rating and could even result in life insurance companies declining your application. There are several serious complications that could be cause for denial since they have long-term risks.
Gestational diabetes could prevent you from getting approved for term life insurance in the future. During a paramedical exam, if the life insurance finds evidence of gestational diabetes, you will most likely be declined. Women affected by gestational diabetes are much more likely to develop type 2 diabetes five to ten years later after they have delivered their babies. Diabetes, either Type I or Type II, is taken very seriously by life insurance companies.
Preeclampsia - which is high blood pressure, protein in the urine, and swelling in the fingers and toes - could adversely affect your chances of getting term life insurance while pregnant. This condition could lead to serious complications including organ damage. It is a much higher risk for life insurance companies to approve you with this condition.
Other less severe pregnancy complications exist, that don't post long-term risks, might temporarily affect a life insurance company's decisions about offering you life insurance.
Should You Wait to Apply?
If you apply for term life while pregnant and you are declined or approved at a much higher premium that you would like to pay, you might opt to reapply six to eight weeks after you have had your baby. As long as you don't have any long-term complications, any pregnancy-related conditions might have passed, and life insurance companies could offer you a more attractive rating.
You might ask about life insurance companies who offer term life without a medical exam, for a slightly higher premium. However, these are never guaranteed as no medical for everyone. If the company finds entries in your medical and pharmacy records that require a paramedical exam, you run the risk of them declining or approving you at a much higher premium.
Does the company take into account the weight I gained?
I have heard from several clients that she just had a baby two, four, or six months ago, and that her weight is 30 to 50 pounds higher after having a baby. Does the life insurance company take that into account? The cold hard truth is no, they do not. Your weight is taken at face value during the time of application and/or your paramedical exam. If you weighed 130 pounds before the baby, and now you weigh 160 pounds after delivering the baby several months ago, the life insurance company will rate you at 160 pounds.
If you really want to be approved at that higher rating, it is best to shed those extra pregnancy pounds, then apply for life insurance when you are ready.
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Written by Bill Pepe