Multiple birth insurance, or twin insurance, pays a lump sum to the parents of unexpected twins or multiples. The policy must be secured early in the pregnancy, between 11 and 18 weeks of gestation. The insurance premiums must begin prior to an ultrasound confirmation of multiple birth.
Payment can be used for anything
The lump sum payment is meant to help with the additional cost of multiples. In reality the lump sum may be used for anything the policy holder wishes. The money can be used for clothes and necessities, to pay medical bills or start a college fund. You could even use it to buy a bigger car or contribute to the down payment on a home.
Policies are customized
Policies are generally designed to pay on a sliding scale increasing based on the number of children in the home. Selected premium levels yield different levels of payout. In other words, the more you pay in, the more is paid out. The policies appear to be more popular in Europe, but they are available and legal in the United States.
Does not apply to fertility treatments
Premiums also go up based on maternal health and family birthing history. If there is a history of twins, especially on the mother’s side, premiums will be higher. Age and lifestyle choices also affect the payment. Also, the policies are almost never open to women who have undergone fertility treatments, especially those treatments occurred in the prior two years.
Putting aside any argument for or against “twinsurance”, for some people these policies can be very helpful. For many people expecting twins, they help to eliminate one of the many stresses they face: financial concern.