Wednesday, September 10, 2008

Pregnancy Income Insurance

Right now, everywhere I look there are babies, either just born or about to be born. My cousin Ruth just gave birth to her first baby last week. I also know of about 12 pregnant women off the top of my head. Pregnancy, as any of them will tell you, can be a lovely thing, but it can also be a very scary time. Nobody really likes to talk about the things that can go wrong during pregnancy, especially if pregnant at the time of the conversation, because nobody wants to freak anybody out. This is completely understandable, but sometimes things do go wrong during pregnancy. Luckily, if you are pregnant or plan on getting pregnant in the future, you can take steps to help protect yourself in case the unthinkable happens. Obviously, if you are pregnant, you are bound to miss some amount of work due to labor and recovery. Yet, if you run into a problem, like you have to suddenly stay on bed rest, what are you going to do for income? Did you know that you can get Income Insurance During Pregnancy? This is definitely something that needs to be looked into if you are currently pregnant, because a pregnancy disability can happen to any woman, but there is no reason why your financial situation should suffer while you do! I encourage you to check out the press release below and learn more! Trust me, if something does happen, you’ll be really glad that you did!

Missing work during and after pregnancy has become a common occurrence. According to a 2002 study, 29% of short term disabilities (180 days or less) and 12% of long-term disabilities are due to pregnancy. Maternity disability can turn what is otherwise a happy occasion into a financially harrowing experience when the mother is left unable to work for months before and/or after delivery. Disability Income insurance can be the answer to the unknown risk to a household’s cash flow due to pregnancy.

Many larger companies offer paid maternity leave to employees whereby the employee is granted full pay for a period of time (generally 3 months) while out of work with the newborn. Any complications that cause the employee to miss work before delivery or beyond the maternity leave period after delivery result in a loss of income for days or even months.

Individual short term disability insurance can provide up to 70% of regular income when you’re not able to work due to illness or injury for 3-6 months. Long-term disability insurance takes over after the short-term benefits period has passed and can provide income protection for up to five years or longer.

Mothers-to-be often rely on the group disability insurance offered by their employer. Group disability usually covers up to 60% of regular income. However, all benefits received from such a policy are taxed as regular income, lowering take home dollars to roughly 42% of regular income. Group policies are also commonly riddled with exceptions and limitations that further reduce or eliminate benefits altogether.

Mothers-to-be with group disability insurance can very affordably plug the holes in their policy with a supplemental disability insurance policy. Supplemental coverage can extend income protection to 100% of pre-disability cash flow and benefits paid from the supplemental policy are not taxed as income.
The key to protecting a future mother’s income during pregnancy is to get disability insurance, be it individual or supplemental, before becoming pregnant. Once pregnant, the eligibility for additional disability insurance evaporates.

Future moms have several options to protect their income from a long-term or short-term pregnancy disability. Without this coverage, families take the risk of losing a good portion of their income for months, if not longer. Whether you participate in a group plan at work or not, maternity disability can be planned for in an affordable manner to help ensure a truly safe pregnancy where your family’s quality of life remains unaffected.

Please visit us at with any questions or to find further information regarding the protection of your income during and after pregnancy.


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