If you have a difficult pregnancy and cannot work, you need a source of income. Even if your pregnancy is normal, delivering a baby is stressful on your body whether you have a natural birth or a C-section-- and it is unlikely you will be able to return to work immediately. Work absence due to pregnancy is covered under your employer's short-term disability policy, so you are guaranteed a portion of your income during your time off.
How It Works
Short-term disability insurance pays a portion of your salary if you are unable to work due to a non-employment-related medical condition, which includes pregnancy. A typical employer short-term disability plan would pay about 60 percent of your income, while a private plan might pay up to 80 percent. This is enough for most people to cover their minimum expenses while providing an incentive to get back to work as quickly as possible.
Maternity Leave
Short-term disability insurance is not necessarily the same thing as maternity leave. Maternity leave, as its name implies, is time off from work for a mother to take care of a new child. In some cases it is called parental leave and offered to new fathers as well. No law governs what maternity leave must cover and in most cases it is a combination of sick leave, short-term disability and unpaid leave. Short-term disability plans typically don't pay until you have been unable to work for at least seven days--your sick leave will cover you during this initial period.
Getting Coverage
SmartMoney reports that as of 2008 only five states required employers to offer short-term disability to their employees. However even in those states, employees have to pay some or all of the premium, so many choose to forgo the coverage. If your employer does not offer the coverage, you can get a private short-term disability plan. Investigate private plans even if your employer does offer the coverage, since you may be able to get better coverage.
Length of Coverage
The definition of "short term" varies from policy to policy unless your state mandates how much coverage must be provided. Typical policies cover either 26 or 52 weeks, plenty of time to cover a typical maternity leave, but be sure to check your policy. Some employers try to save money by getting inexpensive policies that provide only a few days or weeks of coverage. You don't want lack of income to force you back to work early after a difficult pregnancy.
Family Medical Leave Act
In 1993, the U.S. Congress passed the Family Medical Leave Act (FMLA) which guarantees a worker's job for up to 12 weeks in the case of birth or adoption. The act doesn't require employers to pay any of your salary during this time. However even if your employer doesn't have short-term disability coverage and you have to rely on savings or your spouse's income during your maternity leave, at least you know you can't be fired for having a baby.
