About Pregnancy Disability Insurance

Even an ideal pregnancy and birth can involve periods where a new mother is unable to work. And, unfortunately, sometimes there are complications than can make this period last even longer than usual. Until 1993, pregnant women were left to the mercy of their employers when it came to maternity leave, and often lost their jobs or seniority. Today, many pregnant women have federally-guaranteed rights, as well as private disability insurance to help them focus on what should be the top priority of their pregnancies: the family.

Function

Pregnancy disability insurance is designed to prevent loss of income during a period in which a pregnant woman is unable to work because of her condition. For some women, private pregnancy disability insurance may be the only source of income during and after the birth of their children. Others may have some paid maternity leave authorized by their employer, possibly as part of the mandated Family and Maternity Leave Act (FMLA), and can use pregnancy disability insurance to augment their leave periods or fill gaps in their coverage.

Identification

All public agencies and any private employers with 50 or more employees must offer paid maternity leave to qualifying employees. These are employees who have worked for their employers for at least 12 months, consecutive or not, or at least 1,250 hours. Under the FMLA, these employees are entitled to as much as 12 weeks leave in any 12-month period.

Considerations

Of course, these definitions leave many employees and small-business owners without maternity leave protection. For these mothers-to-be, private pregnancy disability insurance can be vital to peace of mind. And even those with FMLA protection can be subject to significant loss of income if serious complications arise from the pregnancy. Thus, any family dependent on the income of a woman who intends to become pregnant should weight the potential costs and benefits of pregnancy disability insurance.

Features

Eligibility for pregnancy disability insurance is usually only available to women before they become pregnant. If a woman becomes pregnant after acquiring insurance, most private pregnancy disability policies will offer 60 to 70 percent of her normal income during the final month of pregnancy until the fifth or sixth week after birth. The period can usually be extended for a genuine medical condition with a certificate from the physician.

Significance

A 2002 study reported that 29 percent of short term disabilities and 12 percent of long term disabilities are related to pregnancy. The FMLA itself was passed by Congress as recognition of changes in the "traditional" American family due to a growing number of single-parent and two-paycheck families. Pregnancy disability insurance is another form of protection available to working women that also want to be mothers.

Resources

• Pregnancy Disability Insurance
• Maternity leave: The basics