Insurance for maternity and pregnancy is definitely something to look into. Unfortunately, individual short term disability insurance for maternity and pregnancy doesn’t exist. I’ll get to why in a second, but there are group plans that will cover you for maternity leave and pregnancy.
What Is It?
This is a unique type of insurance, because it’s the only type that allows you to get coverage for an event that you can plan! For that very reason, there are no individual short term disability insurance plans available. However, group short term pregnancy and maternity leave insurance does exist.
Short term disability insurance for pregnancy covers any complications that may occur in pregnancy that require you to go on bed rest. This gives you peace of mind as money shouldn’t be something you have to worry about during such a draining time.
Short term disability insurance for maternity leave covers the six to eight weeks after you’ve given birth. That way you can take care of the most precious addition to your life for up to two months without having to worry about finances in the process. I’m sure you’ll have other things to worry about.
What Are the Conditions?
Insurance companies want money, and it doesn’t make sense to offer you coverage for something that you can plan. So how to they still offer this to you when they know they’re going to end up paying you back? There are several conditions that come with pregnancy and maternity leave short term insurance.
1. You have to buy the insurance before you concieve. Putting some restriction on when you can buy the insurance makes sense to the insurance companies so they don’t lose even more money on this form of insurance. If you buy it afterwards, you still have insurance for accidents and illness, but no pregnancy or maternity leave.
2. You have to go through a one week elimination period with no pay. This elimination period is very short compared to most forms of insurance. However, it’s worth noting that if you are on a six week plan, you will only get paid for five weeks, and if you are on an eight week plan, you will only get paid for seven weeks.
3. Some policies have a cap on how much you can make. For instance, you can make 66% of your income up to $5,000 per month. The $5,000 is a cap. Even if you make $10,000 per month, you will only be paid $5,000 on your insurance. Make sure you know if there is a cap and what it is before you sign anything.
Making sure you know what your getting is very important. Maternity and/or pregnancy disability insurance can give you peace of mind in a time in your life when you don’t have time to worry about money. While individual short term disability insurance doesn’t exist for maternity or pregnancy, many employers offer some form of it. If you’re considering having a little one, this is something worth looking into further.