Can an Unborn Baby be Insured?

Posted on November 14, 2013 and updated March 20, 2018 in Life Insurance Canada News 3 min read

Statistics Canada reports that an average of 380,000 Canadians are born every year, but life insurance for children still remains controversial, with some saying it’s important, while others say you can do without.

If you’re going to insure your child, you must make sure they are living. Though some life insurance policies for children start at age zero, that means under a year old, and the child must be outside the womb before you can insure them. LSM Insurance President Chantal Marr says, “You can only insure a living person.”

Many group insurance policies automatically add your newborn baby to the policy, but the baby must be alive for 15 days before they qualify for treatment on the plan. Though insuring children so young remains a topic for debate, Marr, also a mother of three, recommends it for the following reasons.

1. The child can lock in early at a very favourable rate. Many permanent plans can start at premiums as low as $12 a month.

2. You are guaranteeing your child’s future insurability. Knock on wood that your child is in good health at birth, but that good health may not always stick around, and taking out insurance on them at a young age allows them to guarantee their current health status. Many policies even allow you to add a guaranteed insurability option, where you can upgrade their coverage at different points in the future without a medical exam.

3. The policies can build cash value. Sure, there are other ways you can invest your money, but some participating whole life policies in Canada have rates of return in excess of 6 per cent compared with other low-risk investments. This rate-of-return can be quite attractive.

4. The policies can be paid up in a limited number of years. Many parents like the idea of having a plan that can be given to their child and be paid up before the child begins working. Most Whole life plans can be paid up in 10, 15, or 20 years.

5. For parents who don’t want to set aside a lot of money, they can add a children’s term rider to their existing policy. Many of these children’s term riders can be added for as little as $4 a month.

For information about insuring your children, please call us at 1-866-899-4849 or visit our Term Insurance Life Insurance Quote Page.

Kevin Haney
Kevin Haney

Sometimes children are born with an existing illness. Adding a rider to the parents policy may be the only option.

LSM Insurance
LSM Insurance

Good bid. But many of these children’s riders have questions about the child’s health as well.