Insuring your income while your family is growing is a very important financial decision. So how does pregnancy affect your long term disability insurance policy or the process of getting a policy?
In this blog post, we are going to cover the most frequently asked questions about pregnancy, including:
Applying for disability insurance while pregnant
What modifications there are if you are pregnant
Policy features to consider if you are pregnant or considering becoming pregnant
Applying for Disability Insurance While Pregnant
Pregnancy does not affect applying for a disability insurance policy until the third trimester.
If you are currently pregnant however, the policy you apply for/purchase most likely will exclude the current pregnancy or any complications resulting from the current pregnancy from the policy.
This can also influence how your policy will cover you for future pregnancies. If your first pregnancy was healthy and had little to no issues, your policy will most likely cover other pregnancies in the future.
Keep in mind that It is always best to apply for disability insurance before you are pregnant to ensure that you will have the most comprehensive coverage.
Policy Modifications for Pregnancy
Pregnancy and childbirth, whether it’s a C-section or vaginal delivery, do not qualify for a disability claim. However, complications during or after pregnancy may still qualify you for a claim If complications last longer than your elimination period.
During the third trimester of pregnancy, the insurance company will postpone your policy until you have had a normal delivery. The insurance company may also exclude any complications for this one pregnancy when you apply for coverage. If you had complications with your first pregnancy, it's likely future pregnancies would be excluded.
Some common complications that would be cause for exclusion would be:
Something to note is, unfortunately, most insurance companies will look at a C-section as a complication that could potentially exclude pregnancy or future pregnancies from your policy. There are times in which it is not excluded, but in most cases it is.
Policy Features for Pregnancy
When purchasing a disability insurance policy, it is always a good idea to look at features and benefits (which are basically add ons to your policy) that may help you in the future. If you know you may become pregnant or are currently pregnant, here are a few good options to add on to your policy.
Non-Cancelable Rider: A non-cancelable rider makes sure that the disability insurance companies can’t raise your premiums as long as you are paying them.
Guaranteed Renewable Rider: The guaranteed renewable rider prevents the disability insurance companies from changing your policy terms (like the benefit amount) or canceling the policy itself, as long as you continue with your payments.
Residual/Partial Disability Rider: This rider allows you to receive a percentage of the benefit equal to the percentage of income you have lost from the partial disability.
Mental Nervous Rider: This rider will pay you a benefit if you are unable to work due to mental illness. (It is important to ensure that the policy will cover postpartum depression as well)
Ensuring that you, your family, and your income are protected while trying to grow is very important. If you are ready to get started with your policy, fill out a quote request here.
Otherwise, if you have any other questions, feel free to reach out, we are always here to help you!