Is Disability Insurance Part of Your Family's Financial Plan?
With only 40% of employers in the United States offering paid parental leave1, many women sign up for disability policies to help them financially while they recover from childbirth. That coverage comes in either short-term or long-term plans.
Pregnancy and Short-Term Disability
Pregnancy is one of the most common reason for filing a short-term disability claim, even though those plans also provide coverage for qualified accidents and illnesses that prevent a quick return to work. Many short-term disability plans require that you purchase them before you become pregnant, so women must plan ahead to avoid a possible claim denial. These plans may provide financial assistance while on maternity leave for anywhere between four to eight weeks depending on the type of birth.
Pregnancy and Long-Term Disability
Long-term disability plans are also an option because many of these plans provide coverage if you’re unable to work for more than 90 days. After 90 days of disability, it could pay a benefit for covered pregnancy-related complications and covered accidents or illnesses. While many women don’t anticipate any of these potential problems, for some, the added coverage may help offer peace of mind.
Keeping Disability Coverage Post-Pregnancy
So, why should you keep your disability policy after childbirth? Because post-delivery complications are unpredictable, and pregnancy can awaken dormant illnesses that require more time off work. Furthermore, none of us are immune to unexpected accidents and illnesses that may interfere with our ability to work. In fact, disability causes nearly 50% of all mortgage foreclosures and is the leading cause of personal bankruptcies.2
Disability Insurance Offers Income Protection
Regardless of the policy, disability coverage is often overlooked as a great tool for financial planning and income protection. Should a disability happen to you, you’ll thank yourself for keeping your policy long after you’ve had your baby.
Related Disability Articles
Explore the difference between the Family and Medical Leave Act (FMLA), Paid Family and Medical Leave (PFML), and disability insurance.
The key differences between the two types of disability insurance policies are benefit periods and elimination periods. Learn more.