The time before a baby’s birth can be thrilling and stressful for a new parent.
Between doctor’s appointments, gender reveal parties, baby showers and nursery set up, there is so much to do before a baby is born.
With so much already on their plate, the last thing that a family wants to worry about is if they will continue to receive a paycheck when the working mother gives birth. Fortunately, life insurers offer short-term disability insurance policies that provide crucial income protection.
Approximately 25 percent of all short-term disability claims are related to pregnancy and maternity. This is the most common benefit under short-term disability insurance policies. And approximately 47 percent of full-time civilian workers receive paid leave under their employer’s short-term disability plan.
Short-term disability insurers already provide much of the paid family and medical leave (PFML) that would be required under legislative proposals in the states and on Capitol Hill. The private employer-based system in 2017 paid American workers approximately $4.6 billion in benefits as they recovered from conditions that kept them from working. These conditions included those associated with pregnancy and childbirth.
A typical group short-term disability insurance policy for a median wage earner ($60,000 per year) costs about three to four dollars a week to replace 60 percent of an employee’s lost income for up to 13 weeks. This provides an affordable way for employers to help their employees protect their income during periods when they are unable to work.
So, when a new mom is temporarily out of the workplace on maternity leave, the family can still have meaningful income. Moms and dads will be able to make the rent, mortgage, car, or student loan payments without interruption or financial hardship. And everyday expenses like utilities, phone, gas and groceries will be paid.
Families face plenty of new challenges when they have a baby. But, thanks to private disability income insurance from life insurers, they won’t have to worry about keeping a roof over their heads or food on their tables. They can simply enjoy family time.
Alane R. Dent served as Senior Vice President, Federal Relations for the American Council of Life Insurers (ACLI) until March 2020. She oversaw issues affecting the life insurance industry; including tax, retirement security, financial services, international affairs and life insurance products.
