Buying Life Insurance When You’re Pregnant: What to Know

Shawn Plummer

CEO, The Annuity Expert

Congratulations on your pregnancy! This is an exciting time, and you have a lot to think about. One crucial decision you will need to make is whether or not to buy life insurance. This can be a difficult decision, especially if you are pregnant. In this guide, we will discuss some of the things you need to know before buying life insurance when you’re pregnant.

Life Insurance: Tips For Expecting Moms.

If you are pregnant, chances are that your days consist of excitement and nerves in anticipation of your baby’s arrival. You might prepare by baby-proofing the house and painting the nursery an optimistic color. However, there is one purchase you may not have thought about as a necessity for your child: life insurance.

A Life Insurance Policy Can Help Financially Protect Your Baby.

When you have a family, life insurance is crucial. You are the breadwinner, and your death would devastate them emotionally and financially.

Unexpectedly passing away is, unfortunately, something that happens every day. If you have a stay-at-home partner and pass away, would they be able to support the family without your paycheck? Most likely, they couldn’t and would have to take on a second job or even quit their current position to dedicate themselves fully To raising the child.

The loss of a stay-at-home parent would be financially devastating to any family, costing an average of $178,201 per year. As a stay-at-home mom, your death could have even more dire consequences for your loved ones. Would your partner be able to pick up the slack and fill all the roles you play in the household?

What Type Of Life Insurance Is Right For Me?

Term life insurance is often the more affordable and practical option for families. Term policies protect your family for a set period of time (between 10 and 40 years) with one fixed monthly cost. A good rule of thumb is to budget for a policy that covers your child until you no longer support them financially. If you’re nearing retirement age or want to pass assets down to the next generation, whole life insurance might be right for you.

How Much Life Insurance Coverage Will I Need?

To find out how much coverage you need, add up all your assets and subtract any debts or future expenses you anticipate. If you’re not sure if you calculated correctly, don’t worry! Use our free coverage calculator for a quick and easy estimate.

As your child grows, so will their expenses. It can cost more than $233,000 to raise a child to age 17 without including the costs of their college education or independent living expenses. Additionally, it’s not uncommon for adult children to live with their parents during their early twenties as they get established financially; therefore, coverage should extend to cover their needs, such as student loans and rent.

How Much Life Insurance Should I Buy To Protect My Child?

How much insurance you need should be determined by what your family needs. It’s critical to think about your kid’s future if something happens to you while you’re pregnant.

When determining how much life insurance to purchase, factor in the cost of caring for your kid and their expenditures after you’ve passed. Make a list of what you give your family, including food and medical expenses. Include nonessential items and other quality-of-life requirements on your list as well.

Pay Off All Debts

If you have outstanding debt at the time of your death, your family may be responsible. This might be a mortgage you took out with your spouse, credit card bills, or a student loan. You should get enough coverage to assist your beneficiaries in paying off these debts without causing them financial stress.

College Education Expenses

When you haven’t even had your kid yet, the expense of higher education for your kids might appear distant. However, tuition is one of your child’s most significant expenses. So if you want to help them achieve better education and greater chances in life, you should budget for college expenses in the future.

Your Funeral Expenses

You’ll need to pay for a funeral home, burial expenses, a coffin, a headstone or cremation, and other costs for your loved ones. It quickly adds up to hundreds of dollars. So it’s wise to include these costs in your policy so that your family doesn’t have to worry about it while they mourn.

When figuring out how much life insurance you’ll need for your new family, remember that you should also cover yourself and your spouse. In addition, although life insurance is a must-have for the family’s breadwinner, stay-at-home parents should also be covered. This will secure childcare services if they die.

Do I Need To Buy A Life Insurance Policy For My Baby?

Life insurance is financial security for dependents who would be left destitute when their breadwinner dies. Because newborns do not give financial support, you may skip out on buying life insurance. However, in the event of an unexpected death, you might wish to get a policy on your kid to cover their funeral expenses. A baby’s insurance policy would also lock in premiums early, guarantee your child’s insurability, and might be used to invest or save your child’s future costs.

Adult life insurance policies available to you may include kid riders for a small monthly charge. In addition, if your child dies before age 25, the rider will pay you a death benefit.

To receive compensation through a rider, you must show that your kid meets the coverage age requirements when filing a claim. There isn’t usually any underwriting required. To obtain the insurance, your baby won’t need a life insurance medical examination; however, an insurer may request some health questions from you.

Some pre-existing conditions in high-risk children might not be covered. But, typically, your children are covered by a single rider.

Compare Pregnancy Rates

When Should I Buy Life Insurance If I’m Pregnant?

f you’re pregnant and haven’t yet set up your life insurance policy, don’t wait any longer. Contact us for a quote, and we can help you get coverage as soon as possible. Having a baby on the way is a great time to get life insurance since you won’t have time to focus on it once the little one arrives. And remember, the sooner you purchase life insurance, the better!

Related Reading: Health and Disability Insurance For Pregnancy

Life Insurance When Pregnant

Need Help Getting Life Insurance Coverage?

Contact us if you need help purchasing a life insurance policy. The service is free of charge.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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