When Planning a Family
Consider Life Insurance Before Trying to Conceive
I’ve recently been speaking with many pregnant mothers and future fathers. During this exciting time, their thoughts gravitate towards the future. Some are items such as when will the baby shower be, what’s the best stroller at an affordable cost, and should the baby’s room be pink, blue or a neutral color? Being a parent of two myself, these items were certainly important, but there are more crucial items we should be planning for.
”How will we handle parenthood financially? What if something happens to me, and how does that affect my future children from a financial standpoint?”
Typically, individuals thinking about life insurance I speak to are currently pregnant. Some of these individuals have recently found out, some are 10 to 14 weeks, while others are in their third trimester and close to the due date. It’s great they’re thinking about financial protection for their future family, but for all stages of pregnancy, there are additional factors life insurance carriers will assess upon review. Since life insurance can involve medical records and exams, the timing of applications can effect approvals and premium rates.
News of Pregnancy - When first discovering a pregnancy, before meeting with a physician, typically one can apply for life insurance in a normal fashion. The pregnancy is not on medical record, so the application process can be completed as normal with no mention of pregnancy during the medical questionnaire. Pending how long the approval process takes, there may be no need for any medical records or even a medical exam.
First Appointment up to Third Trimester - If someone during pregnancy has no complications, chances are they can pursue top health rates for best life insurance pricing. However, minor health items like elevated cholesterol and blood pressure, even though normal when not pregnant, can factor into the insurance company’s risk assessment. Other items like preeclampsia, gestational diabetes, infections, or changes in lab results, could be considered in the insurance process for approval, but can adjust to a health rating which could slightly, or even drastically, increase the cost of coverage.
Third Trimester to Due Date - Once closer to the due date, if an individual decides to start the life insurance process, it’s possible they run the risk of the insurance company postponing an offer. This is not a decline, and not necessarily a bad thing. In this instance, the insurance company would want to re-review after three months postpartum. Pending how labs and doctor visits go, can result in best insurance health rates, but also adjusted health rates if any conditions can create potential future health concerns.
Pregnancy Conditions - There is one condition in particular to mention that has become an important part of the insurance process: Gestational Diabetes. Let’s say someone had a baby in the past with no complications reported other than a slight increase in their blood sugar levels, resulting in a diagnosis of gestational diabetes. Even years later, if and when the individual decides to apply for coverage, this prior condition would most likely factor into the health rating and pricing of coverage. Gestational diabetes, even though no longer present and A1c levels return to normal, can increase the risk of diabetes for the individual at a later date. So it’s possible that prior pregnancy health items will affect future pricing, even if not pregnant or with no intention of becoming pregnant in the foreseeable future.
Life Insurance has always been, and will continue to be, priced based on our current and prior health conditions.
Any added risk factors will be evaluated by insurance companies, which can increase the price of cost, postpone approval offers, or even have coverage declined. Considering important health based insurances like life & even long term disability coverage, before family planning begins, can be very advantageous for access to coverage, and ultimately, reduced cost.