21 Dec 2018

Does Short Term Disability Insurance Cover Maternity Leave?

Does Short Term Disability Insurance Cover Maternity Leave?

Pregnancy is a wonderful milestone for parents; the excitement of a new addition. While it comes with its share of aches and pains, the overwhelming joy parents feel makes it all worth it.

However, with pregnancy comes a bit of fear. There is fear that you will be responsible for a child. There is fear that the world is a difficult place to live. And there is fear that money will be tight. For working moms, this fear is encompassed with the want and need for maternity leave. While there is the Family Medical Leave Act (FMLA) which ensures that your job will be there when you return, there is no guarantee in most states that you will receive pay while you are out of work.

State Help for Maternity Leave

Some states offer the ability to apply for state covered short-term disability for six to eight weeks (depending if you had any complications with your delivery) and receive 75% of your pay for that period of time, up to a predetermined cap. However, most families will need a full salary while taking the time to heal and bond with their new addition. Furthermore, some families will prefer to take a full twelve weeks to stay home with their new babies to help them get through that “fourth trimester.”

Depending on your state, the FMLA may help cover up to a percentage or predetermined amount of your pay for another six to twelve weeks that you may be out of work to bond with your child. However, it is important to keep in mind that once you use your 12 weeks of FMLA, you will have to wait another year to utilize the benefits again, such as if your child has any medical issues that needs your attention for a long period of time.

Short Term Disability Insurance

Another option would be short-term disability insurance. While not all short-term disability policies cover maternity leave, many policies offer this as an option. There are several benefits included with this type of policy:

  • Little or no waiting period
  • Supplement what is being paid out by state covered insurance
  • Can be used at any time and as often as needed, under the guidelines of the policy
  • Typically inexpensive coverage

Here is how it works. First, you must find a policy that considers pregnancy a covered ailment. Not all policies include pregnancy as an ailment, therefore, you must be careful to research each policy fully. Speak to your insurance representative to help you find the perfect policy for your needs, ensuring you will not accidently choose a policy that does not cover this one specific need.

Next, or also first, you must make sure to purchase this policy before you are pregnant. Typically, the rule of thumb requires that you have the policy for at least ninety to one hundred and twenty days before you must submit a claim, or even become pregnant. Therefore, it is probably best to purchase this type of policy when the enrollment period comes around, even if you are not intending on getting pregnant so soon. That way, it will be in place without any struggles when you do become pregnant.

Finally, when deciding how much coverage you need, you will get to choose if there is a waiting period, how long you will receive payments, and even how much, (up to 100% of your salary), you wish to receive. Then, you will be able to receive payments to help you maintain your income while you are bonding with your new baby (and healing from giving birth).

As wonderful as having a new baby is, the anxiety over expenses and life changes are very real. It is best to be as prepared as possible. Since you cannot fully prepare for what having a child truly entails, try to at least prepare your finances and your home to relieve some of the anxiety so you can enjoy this special time in your life.

To learn more about short term-disability insurance and maternity leave, contact the experts at HealthQuoteInfo.com at 1-855-614-5057. Our licensed insurance experts will be happy to answer any questions you have.

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