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Buying Life Insurance during Pregnancy

dateKnowledge Centre Team dateApril 19, 2021 views131 Views
Buying Life Insurance during Pregnancy

Firstly, congratulations, you are now a part of a loving and happy family and are entering a world full of happiness. Also, congratulations on your baby.

The first rule of earning returns is more risk, the more will be the returns acquired. But with major life changes, you have to some major life choices. Huge life events like marriage, pregnancy, and death make you reconsider all your life choices, especially financial decisions. During pregnancy, it is always better to go for a safer and more reliable option. You must reevaluate your financial decisions and decide what would be in the best interest of you and your family. When you are pregnant, it could take a toll on your emotions.

This is the time to start looking out for your family and their future. However, it is the worst time to invest in equity; instead, look for reliable life insurance plans. Future planning should be on the top of your bucket list. You wouldn’t want your pregnancy to be worrisome, but rather it goes smoothly without any financial hold-up.

Everyone’s first instinct is to set up a college funds account or to get health insurance but getting a life insurance plan during pregnancy is just as important. Life insurance lets you protect your child’s life even after your demise.

The pandemic has been a wake-up call for each and every one of us. It has been a reminder for everyone to not take life for granted. If, by chance, you lose your life to some deathly disease, with life insurance, you can make sure that your child’s future is well protected.

Do you have to pay higher premiums if you are pregnant?

Some people may have second thoughts about getting life insurance during pregnancy because of higher premiums, but there is nothing to worry about if you get it at the right time. When you’re pregnant, you may have concerns about a change in price because of the changes in your body. But a good life insurance plan takes these issues into consideration.

These policies ensure that pregnancy weight gain is taken into consideration and adjustments are made according to the expected differences in lab results. There is a possibility of your pregnancy leading to gestational diabetes, high blood pressure, or some other complications in the second or third trimester.

This is why it is best to invest in good life insurance for women in the first trimester itself because the complications are minimal. In the second or third trimester, some insurance companies might postpone your application which would result in no coverage during pregnancy.

Process of buying life insurance when you are pregnant

It is important that you have full disclosure with the insurance company so that you can strike out the possibility of invalidating your life insurance plan. But the company should welcome your pregnancy with open arms and make you feel comfortable with entrusting your finances.

There are 3 major steps that you need to follow while shopping for life insurance during pregnancy:

1. Choose the right plan

Compare different plans and take your pick. It is crucial for you to take your time while deciding which plan works best for you. Compare the premiums, returns, coverage, and other services that the company offers. Make sure that the insurance company isn’t hesitant to take a pregnant woman as their client. The company that you are trusting must reciprocate the trust in the very first instant and not have any second thoughts.

2. Choose a beneficiary

Choosing someone to take care of your child could be heartbreaking, but it is in your child’s best interest. Choosing your partner as the beneficiary is generally everyone’s first option. But it is equally important to choose an alternate nominee.

Learn more about how to choose a nominee for your life insurance policy.

It would be best to choose someone who is close to you as well as the child and is responsible enough to take care of your child personally as well as financially. It is extremely important to be sure that they wouldn’t take undue advantage of your child’s finances before they’re 18.

3. Select coverage amount and term length

Coverage amount and term length change from a case-to-case basis. A lot of factors like your income, expenditure, job stability, outside savings, assets, debts, and future goals can affect the amount that you can put in for the future. The term length would depend upon your plans for your kid. For example, if you want to use this amount for your child’s college expenses, you can go for a 15/20 year term or for a 30-year term if it’s for providing financial support to their family.

Why invest in life insurance during pregnancy?

Investing in life insurance for women is important in general, and the sooner you do it, the better. With inflation, the normal rates can increase with time. The more you wait, the costlier it gets to give your child financial protection. Forming this financial bubble is not a tedious or time-taking task.

Read more about 5 major investments for your child’s brighter future.

If you buy a life insurance policy before or in the early stages of pregnancy, you can get good returns, coverage, and additional benefits. In the late stages of pregnancy, your application has chances of getting postponed, and you may lose out on pregnancy coverage.

ULIPs for planning your retirement

Furthermore, pregnancy can bring in other conditions including hypertension, which can easily increase the medical costs for the next few months to years. Therefore, getting a life insurance plan during pregnancy is a prudent decision.

The internet has made everything a lot easier. You can decide which plan works best for you in the comfort of your own home. Canara HSBC Oriental Bank of Commerce Life Insurance offers an array of online life insurance policies like iSelect Star and Invest 4G that are customized according to your needs. Get the best insurance plan today!

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Frequently Asked Questions (FAQs) for Life Insurance

The premium is one of the most important factors to consider before buying a policy. Many people buy a life insurance policy with a high sum assured but are unable to process the premiums for the entire premium payment tenure. You can get a better idea of the premium outgo with the premium calculator available in the 'Tools and Calculator' section of www.canarahsbclife.com.

Life insurance plans come with several riders which increase the efficiency of the policy for the buyer. For instance, if you have a history of terminal illness in your family it would be advisable to opt for terminal illness rider with your term insurance. Riders or add-ons help in customising the standard policy benefits for the requirement of different families. The iSelect term insurance plan comes with a built-in cover for terminal illness, and option for protection against accidental death or disability. You can also opt to cover your spouse's life under the same policy by paying an additional premium.

Insurance companies calculate the premiums based on several factors such as age, gender and occupation.

Age:It is one of the biggest factors that influence life insurance premiums. Premiums tend to be low when the life insured is younger as the chances of contracting diseases is low. Young people also opt for policies with longer tenures and pay premiums for a longer duration, which makes the policy cheaper for young people.

Gender:The insurance premium for women is generally lower when it comes to life insurance plans. Women live longer and pose a lesser risk of a claim leading to lower premiums for them.

Lifestyle habits:The premiums for people who smoke or drink is always higher due to higher health risks.

Policy term:Policy terms are also taken into consideration by insurers while deciding the premium amount. Policies with longer tenure are cheaper as compared to short-duration policies.

Mode of purchase: The platform that you use to buy the policy also determines how much you will have to pay for the plan. People who buy life insurance policies online have to pay lower premiums as compared to offline policies.

Occupation:The nature of your work is an important factor that influences the premium amount. Certain occupations like shipping and mining are considered more dangerous as compared to jobs in services industries. The insurance premium rises with the risk profile.

Processing life insurance claim is a transparent and smooth process with Canara HSBC Oriental Bank of Commerce Life Insurance.

In case of the death of the life insured, the nominee will have to intimate the company by filling a Death Claim Form and sending it to the nearest branch office.

Once the form is received, the claim is registered by the insurer.

After the registration of the claim, the company will send the claims pack along with the related forms such as physicianâ s statement form and employer certificate that need to be filled.

Along with the duly filled forms a few documents such as original [policy document, death certificate, copy of bank passbook, hospital or treatment records, photo identification and address proof have to be provided.

The claim is processed on the submission of relevant documents. Once the documents are verified, the claim amount is released post all due diligence.

Household expenses rise with age. The cost of children's education increases along with other lifestyle expenses. The iSelect term plan offers an option to increase the cover according to the life stage. If opted, the insurance cover increases by 25% at every 5-year terminal till the 20th policy year.

Even though a life insurance policy is bought to protect your family in your absence. There are chances of the claim being rejected due to several factors.

False information: If the policyholder provides false information or conceals important information while buying the policy, the insurer has the right to reject the claim after his/her death.

Type of death: Deaths due to suicide in first policy year, intoxication or pre-existing disease is not covered under life insurance.

Premium payment: The payment of premiums on time is of utmost important to avail the benefits of life insurance. Life insurance policy may lapse on the failure to pay the premiums

Nominee details: An insurance company can put the claim on hold if the nominee details have not been filled or not been updated by the policyholder.

Suicide: If the life insured commits suicide within 12 months of buying the policy, the insurance companies generally pay 80% of the total premiums paid.

Buying life insurance online is not only safe but a better option. Online life insurance policies have lower premiums and the individual is not required to visit the insurer's branch or a bank. Online insurance policies also offer higher benefits. Customers should, however, buy online policies only from credible insurers and should check for SSL certificate on the website to ensure that the website is legitimate.

The cost of life insurance policies varies depending on factors like age, gender and occupation. The average cost of life insurance plans, especially term plans, is very low compared to the amount of coverage offered.

An individual is allowed to have multiple life insurance policies. People opt for more than one policy to increase the cover or avoid claim rejection. In case of multiple policies, even if the claim is rejected by one insurer, the beneficiaries may receive the benefit from a different insurer.

Life insurance policies are of different types. In the case of unit-linked or endowment policies the policyholder receives the maturity benefit at the end of the policy term. However, in the case of term insurance plans, there are no maturity benefits. The death benefit is only paid out after the death of the life insured.

When you buy life insurance, the insurance company asks for the nominee details. Only the person named as the nominee in the policy can cash out a life insurance policy in case of death of life insured.

A life insurance policy is generally taken for a specified period. After the policy duration of a term plan gets over, the policy simply terminates and ceases to exist. However, in the case of unit-linked plans or endowment, you can use the policy as a tool for retirement planning and the accumulated corpus is used by the insurer to pay you monthly amounts for your entire life.

If a policyholder purchases a term plan for 25 years and dies during the policy term. The family receives the death benefit. In the case of iSelect term plan, the policy provides four payment options to the beneficiaries. If the regular payment options are chosen the policy works as a source of regular income.

It is a popular misconception that life insurance is only for accidental deaths. A term life insurance plan like iSelect also covers terminal disease along with death. A terminal illness cover is important as health insurance pays only for the cost of treatment and hospitalization, but a terminal illness cover pays you a lump-sum amount which takes care of other expenses. On the other hand, unit-linked policies such as Invest 4G cover death and also provide decent returns for other financial goals such as buying a house of child's education.

It is ideal to buy life insurance in your early 20s because it’s is the time when people have just started with their professional life and so there are lesser responsibilities and financial liabilities to take care of. Also, if you buy life insurance at this age, you will be paying relatively lower insurance premiums since it’s a due fact that mortality rate in case of young people is low. And that is why insurance companies offer lesser premium rates to younger people as they think that they are most likely to be fit and healthier with less chances of filing a claim in future.

Once you have cancelled your life insurance policy, you will instantly lose your life insurance cover. Afterwards, your insurance company will get in touch with you and ask for valid reasons regarding the cancellation of your policy. In case you cancel your life insurance policy within the grace period, i.e. 15 to 30 days, depending on your insurer, then insurance company will reimburse the premium amount paid by you. But, no refunds will be paid to you if the policy is cancelled after the grace period.

Yes, you can take life insurance under Married Women’s Property (MWP) Act, 1984 only if you are a married man and a resident of India. Buying a life insurance plan under MWP Act would be helpful in saving your family’s financial well-being when you are not around. As per this policy, only wife and children would be eligible to receive the death benefits. You can also buy a policy if you are a widower or a divorcee. However, in that case, you can give your child’s name as your beneficiary. It is very simple to buy a life plan under MWP Act. All you need to do is to fill up an MWP addendum while purchasing an insurance policy.

Yes, there are different payment options for you to pay premiums. Here’re some of them

    1. Regular premium payment option – This premium payment option allows you to pay premiums equal to your policy term either monthly, quarterly, half yearly or annually.

    2. Single payment option – Through this premium payment option, you can pay the lump-sum amount in one single payment.

    3. Limited payment option -In this premium payment option, you can pay premiums for a specific period of time less than policy term either monthly, quarterly, half yearly or annually, but benefits of insurance can be enjoyed for a longer period of time.

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