| Extended absences from work due to disability during | | | | and provide a formidable shield against income loss |
| and after maternity have become an ever-increasing | | | | due to a maternity disability. Income protection can be |
| occurrence. According to a 2002 study, 29% of short | | | | extended to 100% or regular income with supplemental |
| term disabilities (180 days or less) and 12% of | | | | coverage. Additionally, benefits paid via a supplemental |
| long-term disabilities are due to pregnancy. Pregnancy | | | | policy are not taxed as income. |
| disability can turn a wonderful, life-changing experience | | | | Women with a family history of challenges during |
| into a serious financial challenge when Mom is out of | | | | maternity may also consider catastrophic disability |
| work for months before and/or after the maternity | | | | insurance. CDI covers costs associated with extended |
| period. Disability Income insurance can provide needed | | | | at-home or facility care. For instance, if Mom's doctor |
| cash in the absence or a regular work scheduled | | | | orders her to bed for months before or after delivery, |
| because of a maternity disability. | | | | CDI can cover the expense of a day or live-in nurse to |
| Many corporations offer paid leave benefits to | | | | assist with the needs of day-to-day living. Such care is |
| employees that provide full pay for up to 3 months | | | | generally very expensive and is not covered by any |
| after delivery. Complications that cause the employee | | | | other type of insurance. CDI covers up to a specified |
| to be out of work before delivery or beyond the | | | | daily amount ($120, for instance) and policies can be |
| maternity leave period after delivery can cause the | | | | purchased with a daily benefit that increases annually |
| household to lose cash flow for months or longer. | | | | with inflation. |
| Maternity disability can be planned for with individual | | | | The solution to protecting a new Mom's income during |
| short term disability insurance that can commonly | | | | and after maternity is to acquire individual or |
| provide up to 70% of regular income while Mom is not | | | | supplemental disability insurance before becoming |
| able to work due to illness or injury for 3-6 months. | | | | pregnant. Once pregnant, Moms find that additional |
| Long-term disability insurance kicks in after the | | | | disability insurance is no longer available. |
| short-term benefits expire and can provide income | | | | "This is a common mistake we see almost every day," |
| protection for up to five years or longer. In fact, long | | | | notes Rene Apack, President of Insure Your Future, |
| term disability insurance policies commonly pay | | | | the nation's leading independent disability insurance |
| benefits until age 65 to ensure income in the event of | | | | brokerage. "We get calls from pregnant women that |
| a permanent disability such as if a dentist was to lose | | | | have suddenly realized they may miss work due to a |
| the use of a hand or eye. | | | | maternity disability. They are terrified of losing their |
| Future Moms often rely on employee-sponsored group | | | | income while out of work. Unfortunately, insurance |
| disability insurance. Group disability can provide benefits | | | | carriers don't offer new coverage during the 9 month |
| up to 60% of regular income. However, benefits from | | | | maternity period." |
| group policies are taxed as regular income, reducing | | | | Future moms can protect their income from a |
| actual benefits to roughly 42% income. Employer | | | | long-term or short-term pregnancy disability. With this |
| policies also commonly come with a bevy of | | | | coverage, families can avoid the risk of losing a good |
| exceptions and limitations that can reduce or eliminate | | | | portion of their household income for months, if not |
| benefits altogether. | | | | longer. Whether participating in an employer-sponsored |
| Group disability insurance is a great start toward | | | | group plan or not, maternity disability can affordably be |
| income protection but it's not the complete answer. A | | | | planned for to ensure a truly safe pregnancy where a |
| very affordable supplemental disability insurance policy | | | | solid cash flow is maintained throughout the maternity |
| can very affordably plug the holes in group coverage | | | | period. |