What Every Woman Should Know About Disability Insurance and Pregnancy!

There is one insurance type out there that is quite simply overshadowed by other coverage types such as life insurance for example and yet, most people only realize how valuable it really is after they miss out on its eligibility. Disability Insurance (DI) is a coverage product that provides supplementary income to a worker in case he is temporarily or permanently unable to work due to an illness or mishap.

The definition of disability may differ from policy to policy. The Social Security Administration runs these policies and it is extremely essential for people, especially women, to know about them as they can help women maintain some sort of income earning even when they are unable to work, such as when they are pregnant.

Salient Features of These Plans:

  • These programs are often state mandated, such as in California State, and they offer partial wage replacements for the times when you cannot work.
  • Most of these disability insurance policies are affordable as they are funded through payroll deductions from the employees themselves.
  • People who are eligible under these programs can have short term benefits for compensation of lost wages when they are unable to work for them.
  • Most of these schemes are not automated and it is as simple as filling an online form to check for coverage eligibility and apply for one.
  • You can take the help of an expert to understand about eligibility, how to file a claim and about the benefit amounts before you enroll for a policy.

What’s In It For Pregnant Women?

As this scheme is in reality an insurance on one’s income, its importance at the time of pregnancy (when most women lose valuable work hours) cannot be highlighted enough. Like with most of these contracts, the idea only holds value if you apply for it before the event that gives you the temporary disability occurs. As in, if you apply for it after to get pregnant, the pregnancy is viewed as a pre-existing medical condition, so conditions such as whether you qualify for it or the cost at which you get your coverage can be gravely different than anticipated.

Yet, if you do already have an existing disability insurance and you have just found out that you are indeed pregnant, here’s what the policy can do for you:

  • Usually, as in, in the case of normal pregnancies, a woman can get monetary benefits for up to 4 weeks before delivery and up to 6 weeks after. If the doctor certifies that you require a longer recovery period, such as post a C-section delivery, the period for insurance may be increased.
  • As pregnancy is neither a long term disability, nor a majorly devastating one, you can expect your benefits to be somewhat limited; in the sense that you are only eligible for the actual period that you are incapable or unable to work and nothing beyond that.
  • If you make any claims on this contract, ensure that you do so only after you have suffered your wage loss and your doctor has confirmed that you are unable to continue with your usual work completely. If the doctor permits you to work for limited hours however, your benefits from the policy will be partial too.
  • Your eligibility for making any benefit claims through these contracts depends on several factors such as your occupation and age, prior history with pregnancies and of course your job requirements. For example, if you work as a work-from-home online writer, the fact that you can indeed comfortably work, though for limited hours, will factor in on the benefits you are eligible for.
  • When Disability Insurance compensations are a substitute for unemployment compensation, there are not taxable, but there are cases when these benefits are taxable. Talk to an expert to understand the cases that make them taxable and the rate at which they are taxed.

To sum it up nicely, this insurance contracts are extremely beneficial for working women who wish to start families some day, but do not wish to make this happy occasion curtail their incomes. Just make sure to talk to the right expert and understand your policy quote, the eligibility criteria and the benefit terms before you go ahead with getting one.

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