Life Insurance During Pregnancy: What You Need to Know?

Can You Get Life Insurance During Pregnancy?

Usually, yes. Pregnancy does not affect your eligibility to buy a life insurance plan. Women can buy life insurance while pregnant, covering their lives. There are no separate terms and conditions for pregnant women, provided there are no diagnosed serious complications in the pregnancy.

Usually, there are no specific eligibility criteria for buying life insurance during pregnancy. You can buy any type of life insurance plan that matches your financial needs. However, check with the insurer for any added conditions that might be attached to the policy.

Benefits of buying life insurance during pregnancy

Some of the benefits of buying life insurance during pregnancy are as follows –

1. Financial security

   Life insurance plans cover the risk of death during the policy term. Thus, by buying life insurance, women can provide financial security to their family members in their absence. If the woman is the breadwinner of the family or if her earning contributes to her family’s needs, a life insurance plan can provide financial assistance to her family in her absence.

   
   

2. Planning for financial goals

   As women bring a new life into the world, they might start planning for their child’s financial security. Life insurance plans can help women with this planning. Savings-oriented life insurance plans, like endowment or money back plans, can help women save and create a stable corpus for their child’s future needs. Similarly, ULIPs can give financial protection while allowing market-linked returns on the premiums invested. Women can also choose child insurance plans to create an earmarked corpus for their child.

   Besides the child’s future, women might choose life insurance plans to save for other goals, too, like buying a home, retirement planning, etc.

   
   

3. Tax benefits

   One of the key life insurance benefits is the tax advantage it offers. Premiums paid can be claimed as a deduction under Section 80C (in case of old tax regime), and the policy benefits are also tax-exempt if premiums paid for ULIPs are up to ₹2.5 lakhs and for other life insurance plans is up to ₹5 lakhs. Moreover, the premium should be up to 10% of the sum assured for policies issued on or after 1^st April 2012 and 20% of the sum assured for policies issued before this date.

   
   

Factors Affecting Life Insurance Premiums During Pregnancy

There can be some factors that affect the premium of life insurance during pregnancy. While the common factors affecting premiums remain the same, some added factors, like pregnancy-related health risks, might increase the premiums.

Common factors affecting premiums include –

1. Age – The older you are, the higher the premium would be
2. Existing medical conditions – If you suffer from any medical complication related or unrelated to pregnancy, the premiums might be higher
3. Family medical history – A family medical history of certain illnesses can also result in increased premiums
4. Riders selected – Riders come at an additional nominal premium. So, if you add riders to the policy, the premiums would increase.
5. The sum assured selected – Premiums are directly proportional to the sum assured. The higher the sum assured, the higher the premiums and vice versa.
6. Occupation – If you are engaged in dangerous occupations, like mining, aviation, etc., the premiums may be higher.
    

Choosing the Right Life Insurance During Pregnancy in India

Here are some tips that can help you find the best life insurance for pregnancy –

1. Choose the right plan

   There are different types of life insurance plans. Assess your goals and financial needs, and then select the plan you need. For instance, for financial security at affordable rates, you can choose term plans. If you want to save, you can choose endowment plans or money back plans. If you want life cover along with market linked investments , you can choose ULIPs.

   
   

2. Choose the right sum assured

   Having adequate coverage is essential for complete financial security. So, assess your financial needs and goals and then choose the right sum assured. You can use life insurance calculators to find out what level of coverage would be suitable given your income and expenses.

   
   

3. Compare and buy

   Compare the different types of plans available based on their coverage benefits and premiums. Choose a policy offering the widest coverage at the most competitive premium rates.

   
   

4. Choose riders

   Riders can help enhance the scope of the policy. Assess your needs and choose suitable riders for wider financial protection.

   
   

Common Misconceptions About Life Insurance While Pregnant

While you can buy life insurance while pregnant, there are some common misconceptions that individuals have. Let’s bust these myths and see the real picture –

1. Myth – Life insurance is not available for pregnant women

   Reality – Pregnant women can buy life insurance plans

   
   

2. Myth – The premiums are very high for life insurance covering pregnancy

   Reality – Pregnancy might increase your health risks, which is why the premium might be higher. However, the premiums still remain affordable. Moreover, you can choose a suitable premium payment frequency (monthly, quarterly, half-yearly, or annually) to make the premiums pocket-friendly.

   
   

3. Myth – Coverage will not be given in the case of death during pregnancy

   Reality – If the life insurance policy is issued during pregnancy, the claim would be paid in the case of death during pregnancy. However, you should check the specific exclusions under the plan which might affect claim payments.

   
   

4. Myth – I do not need life insurance when pregnant

   Reality – The requirement of life insurance depends on your financial goals and needs. If you want to provide financial security to your family in your absence, life insurance can be a good choice.

   
   

How to Apply for Life Insurance During Pregnancy: Steps & Tips

Here’s how you can apply for life insurance during pregnancy –

1. Apply online through the insurer’s website or mobile application. For an offline application, visit the insurer’s office and fill out the proposal form physically
2. Provide all the details about yourself, including your medical history and current pregnancy-related details.
3. Submit the relevant documents required to buy the policy
4. The insurance company will underwrite the proposal, and if approved, you would have to pay the premium for policy issuance

Some of the tips when buying a life insurance plan are as follows –

1. Always disclose all important information to the insurance company, even when not asked. This would help prevent the possibility of a claim rejection due to non-disclosure of material facts.
2. Choose the right sum assured.
3. Choose a policy that matches your financial needs.
4. Choose a suitable tenure that aligns with your financial goals.
    

Key Takeaways

1. It is possible to buy life insurance plans during pregnancy.
2. A life insurance policy can prove to be a good addition to your financial portfolio because of the financial security that it provides.
3. You can also save up for your financial goals with relevant life insurance plans.
4. To buy the right plan, assess your financial needs and choose the right type of life insurance plan having an adequate sum assured and add riders for wider protection.
5. Life insurance premiums are affected by factors such as your age, occupation, medical history, pregnancy-related details, etc.
6. You can buy life insurance online and offline in simple steps and get the policy issued without hassles.
    

Wrapping Up

Life insurance plans are risk management tools that cover the financial risks suffered in the case of an untimely death. When you are pregnant and planning a family, a life insurance policy can be a good choice. Besides the financial security, some life insurance plans can also help you save for your financial goals. So, assess your financial needs and choose the relevant life insurance plan that matches your needs. Buy the policy online or offline and choose an adequate sum assured for optimal protection.

Frequently Asked Questions about Life Insurance During Pregnancy

1. Can pregnant women buy life insurance in the first trimester?

   Yes, pregnant women can buy life insurance in the first trimester.

   
   

2. Does pregnancy lead to rejection of life insurance applications?

   No, pregnancy does not usually result in rejection of life insurance applications if there are no serious medical complications.

   
   

3. How much more expensive is life insurance during pregnancy?

   The premiums can be slightly high if there are associated medical risks with pregnancy.

   
   

4. What happens if complications arise after the policy is active?

   Once the policy is active, any complications would not affect the coverage.

   
   

5. Are there specific riders that protect against pregnancy-related risks?

   Critical illness riders or surgical care riders can protect against pregnancy-related risks. However, the coverage depends on the rider’s terms and conditions, the plan chosen, and the insurer.