Life Insurance During Pregnancy In India 2024

Updated On: 2024-03-05

Author : Team Policybachat

Having a baby is exciting! There are lots of dreams and plans, but it’s also important to consider the financial aspects that come with expanding your family. One thing many people forget is life insurance during pregnancy in India. Did you know that even though things are changing, lots of soon-to-be parents don’t know how important life insurance is right now?

Let’s know about life insurance during pregnancy in India. We’ll go through the details and explain why it’s not just a smart choice but also a caring one to protect your family's future during pregnancy. Life insurance isn't just about getting ready for what you know; it’s about creating a strong base for whatever surprises life might throw your way.

About Life Insurance and Pregnancy

Life insurance provides financial security and protection for individuals and their families. Individuals recognize the importance of securing their loved one’s future, especially in the face of uncertainties. Life insurance policies in India often offer a range of benefits, including death benefits, maturity benefits, and riders that can be customized to suit individual needs. These policies ensure that in the event of the policyholder’s demise, the financial well-being of their dependents is safeguarded, allowing them to meet their ongoing expenses and maintain a certain quality of life.

Pregnancy is a significant life event that underscores the importance of life insurance in India. Expectant parents increasingly realize the need to secure their family’s financial future, should anything untoward happen to them during or after pregnancy. Life insurance not only provides a safety net for the newborn but also supports the surviving spouse by alleviating potential financial burdens such as education costs, healthcare expenses, and daily living expenditures.

Can I Buy Life Insurance During Pregnancy?

Yes, pregnant women can generally apply for and obtain life insurance in India. Life insurance policies are primarily designed to cover the risk of the policyholder’s death, and pregnancy alone does not necessarily disqualify individuals from obtaining coverage. However, there are some important considerations:

  • Medical Examination: Insurance companies may require applicants, including pregnant women, to undergo a medical examination as part of the underwriting process.
  • Honest Disclosure: It is crucial for pregnant women, like all applicants, to provide accurate and honest information about their health, including details about the pregnancy, during the application process.
  • Policy Premiums: The premiums for life insurance policies are typically based on the applicant’s age, health condition, and other factors. Pregnant women may still be eligible for coverage, but the premiums could be affected by factors such as age and overall health.

Benefits of Buying Life Insurance during Pregnancy

Buying life insurance during pregnancy can offer several benefits to expectant parents. Here are some reasons why it can be advantageous:

  • Financial Security for Dependents: Life insurance provides a financial safety net for your family in case of the unexpected. If the policyholder, who is likely a breadwinner, passes away, the life insurance payout can help replace the lost income and support the family’s financial needs.
  • Coverage for Medical Complications: Some life insurance policies may offer coverage for medical complications during pregnancy. This can be beneficial in case there are unforeseen health issues related to the pregnancy that lead to complications.
  • Ensures Future Child’s Financial Well-being: Life insurance can be a tool for long-term financial planning. The proceeds from a life insurance policy can be used to fund the child’s education, healthcare, and other future needs.
  • Locking in Insurability: Pregnancy could lead to changes in health that might affect insurability in the future. Buying life insurance during pregnancy ensures that the policy is in place before any potential health issues arise, potentially making it easier to secure coverage.
  • Cost-Effective Premiums at a Younger Age: Premiums for life insurance are generally more affordable when policyholders are younger and healthier. Purchasing a policy during pregnancy allows individuals to lock in lower premiums compared to waiting until later in life.
  • Peace of Mind: Knowing that you have life insurance in place during pregnancy provides peace of mind. It can alleviate concerns about the financial well-being of your family if something were to happen to you.
  • Tax Benefits: Under Section 80C of the Income Tax Act in India, premiums paid for life insurance policies are eligible for a deduction of up to Rs 1.5 lakh in a financial year. This can result in tax savings for the policyholder. Also, the maturity benefits received under a life insurance policy are generally tax-free under Section 10(10D) of the Income Tax Act.

Best Life Insurance for Pregnancy

Choosing the best life insurance for pregnancy in India involves considering various factors, such as coverage, premiums, riders, and the reputation of the insurance provider. Here are some popular types of life insurance plans suitable for individuals during pregnancy:

Term Insurance:

  • Features: Term insurance provides a high coverage amount at relatively lower premiums. It offers pure life coverage without any savings or investment component.
  • Benefits: Term insurance is well-suited for those looking to maximize coverage during crucial life stages, such as pregnancy. The death benefit provides financial security to the family in case of the insured’s demise.

Endowment Plans:

  • Features: Endowment plans combine life insurance with a savings component. These policies provide both death benefits and maturity benefits.
  • Benefits: Endowment plans can be suitable for those who want a life cover along with the opportunity to accumulate savings. Maturity benefits can be utilized for various purposes, such as the child’s education or other financial goals.

Child Plans:

  • Features: Some insurance companies offer specific child plans that are designed to meet the financial needs of the child, including education expenses.
  • Benefits: Child plans often come with features like premium waivers in case of the policyholder’s demise, ensuring that the child receives the intended benefits even if the parent is not around.

How to Buy Life Insurance during Pregnancy in India Online

Following are the steps to buy life insurance during pregnancy in India online:

Step 1: Visit the ‘PolicyBachat website and click the ‘Term’ tab.

Step 2: In the next step enter the below details clearly and correctly.

  • Gender of the applicant
  • Tobacco consumption; Yes or No
  • Annual income from the options given in the calculator
  • Occupation type; Salaried or Self Employed
  • Age of the applicant to be entered as Date of Birth
  • Name of the applicant and email id of the applicant.

Step 3: In this step, you can edit your requirements such as:-

  • Sum Assured Amount
  • Tenure - maximum age at the coverage is required
  • Premium Payment Type - Regular Pay, Single Pay, Limited pay
  • Premium Payment Frequency - Monthly, Quarterly, Half-yearly or Yearly
  • Payout Type - Return of Premium Option
  • Add-ons - Critical Illness, Waiver of premium, Accidental disability, etc.

Step 4: In this step, compare life insurance policies and their premiums and features displayed on the screen. Then select the plan which is appropriate to your needs and budget. Then make payment via online payment method.

How to Choose the Right Life Insurance Policy during Pregnancy

Choosing the right life insurance policy during pregnancy involves several key steps to ensure that the coverage aligns with your family’s financial needs.

  1. Assess Your Financial Needs: Understand your financial goals, such as replacing income, covering outstanding debts, and providing for your child’s education. Consider ongoing and future expenses, factoring in the needs of your growing family.
  2. Choose the Right Plan: Explore different types of life insurance options depending on your financial goals. Explore term insurance plans, endowment plans, ULIPs, child plans, etc.
  3. Select the Coverage Amount (Sum Assured): Determine the amount of coverage needed to meet your family's financial requirements. Consider factors such as outstanding debts, living expenses, and long-term financial goals.
  4. Choose a Beneficiary: Carefully select your nominee to guarantee that the funds fall into trustworthy hands capable of safeguarding your child both personally and financially in your absence. This individual may be your spouse or anyone else whom you believe is the most suitable choice.
  5. Select Coverage Term Length: Choose a policy term that aligns with your financial goals and the time it takes to meet major obligations, like paying off a mortgage or ensuring your child’s financial stability. Consider a policy that provides coverage until your child becomes financially independent or until major financial responsibilities are fulfilled.
  6. Understand Policy Features and Riders: Understand the features of the selected policy, including any riders or add-ons that can enhance coverage.
  7. Disclose Health Information: Be transparent about your health, including pregnancy-related information, during the application process. This ensures an accurate assessment by the insurance company.
  8. Compare Premiums and Companies: Compare premium rates across different insurance companies. Consider the reputation, claim settlement ratio, benefits, and features of the insurance providers.

Wrapping Up

Considering life insurance during pregnancy in India is a proactive and prudent step towards securing the financial well-being of your family. While life insurance primarily addresses the risk of the policyholder's demise, it serves as a crucial financial safety net during a period of significant life changes. By carefully choosing the right life insurance policy, understanding coverage needs, and planning for the future, expectant parents can provide their families with a foundation of financial security.

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