Should I take out Life Insurance while I am pregnant?
One of biggest life changing events is having a baby; Your priorities suddenly change and most people may start to think they need life cover to protect their new family. There are a number of ways you can look into a life insurance policy. The most common policies are level term family income benefit plans which normally run until your child is 18 or 21 years old. Many people also take advantage of the free new parent cover and get £10,000 worth of free insurance cover because they have had a baby. Educational cover has become increasingly popular over time as it gives complete peace of mind that all school costs, both state and private will be covered by the insurance plan.
If you take out critical illness cover then your child will automatically be protected under the plan, covering them for the same illnesses in the plan that you are. It is far from pleasant to think about your child becoming ill but by having the critical illness cover in place you can take time out of work, pay for private treatment and be by their side while they recover without any unwanted, added financial pressures. Usually the critical illness benefit is restricted to £25,000 however you can now increase the pay-out to £100,000 per child. In addition to this, if your child is covered by two single policy plans, both polices will pay out the full amount.
The modern family
The view of women staying at home and raising the children is outdated for modern society. In many households it is the women who bring home the higher income and therefore need to be thinking about protecting the family’s income. If you are off of work and having a baby, this does not change, you need to think about the additional costs that a baby will bring to your home; nappies, wet wipes and the biggest bill of all childcare. The next few years of your life are going to get expensive!
Being pregnant will not prevent you from obtaining a life insurance policy, in fact the questions are no different to anyone else. It is advisable that you tell the insurance company if you are pregnant and they will be satisfied with that as otherwise they could be concerned with factors such as your size and weight. When you are carrying a baby you are undoubtedly going to put on weight. The good news is that the insurance company understand this and you can submit your pre-pregnancy weight. If you have just given birth however they will need your post baby weight.
If you smoke or drink alcohol, this will probably change whilst pregnant. With alcohol the insurance provider will be looking at averages, so even though you may not drink for the 9 months, they will want to know your average consumption, usually over the last 5 years. This will give the insurance company more of an understanding of what your normal lifestyle will be. Even though after having children it may not be feasible and you may not find the time to go back to your old lifestyle. Watching a film and having a relaxing glass of wine in the evening now becomes a hot milk and reading your little one a story.
Smoking and taking recreational drugs will also need to be disclosed even if you have given them up to get pregnant. The insurance provider will usally ask questions in relation to the last 12 months, If you have given up smoking to try and get pregnant then you may qualify for non-smoker rates. Two common condtions that women often suffer with during pregnancy are high blood pressure and gestational diabetes.
- High blood pressure is when the pressure the blood presses on your arteries when being pumped round the body is too strong. If the pressure is too high it can put a huge strain on your arteries and heart and could result in a heart attack or stroke. This is why GPs are very cautious when delaing with a pregant women suffering from diabties.
- Gestational Diabetes is a type of diabetes that some women suffer with during pregnancy. Between 2 and 10 percent of expectant mothers develop this condition (1), making it one of the most common health problems in pregnancy. Gestational Diabetes means that you have abnormally high levels of glucose, (sugar) in your blood. For the majority of mums-to-be, this isn't a problem: when the body needs additional insulin, the pancreas dutifully secretes more of it but if your pancreas is not able to keep up with the increased insulin demand during pregnancy, your blood glucose levels rise too high, resulting in gestational diabetes. Most women that suffer with gestational diabetes during pregnancy, do not remain diabetic after the baby is born.
In many cases the insurer will have to treat you differently due to the diabties and in some cases may wait until after you have given birth and for your levels to go back to normal before insuring you or the insurer may even add a temporary increase on your premiums until your levels are back to normal.
Your Proadvice adviser can guide you through the different insurers and the options available to you and advise you on the best insurer for you, dependent on your circumstances and needs.