Wondering About Disability Insurance Pregnancy?
Disability Insurance Pregnancy
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Everybody knows that the first thing the man thinks when his wife tells him she's pregnant is...gee, how will this affect my insurance plan? Of course, the insurance companies have thought of this by now. That's why there is such a thing as disability insurance pregnancy coverage. Some pregnancies are expected and some are not. Regardless, if the woman was working full time and then decides to take a maternity leave, that can take a toll on the household's finances. If the woman is a single parent, the situation is even more critical since she will have no regular income.
This is where disability insurance pregnancy coverage can help. There's usually not a specific “pregnancy” type of coverage by name; it's simply one of the most common reasons for filing a disability claim. Disability insurance can provide you with a portion of your lost income, anywhere from 45%-60% of your former monthly gross. One of the best features is that this income is nontaxable. Disability insurance pregnancy coverage can protect your personal funds, longtime financial goals and your current standard of living.
Disability Insurance Pregnancy Notes
However, when it comes to handling pregnancy as a disability there are a few special conditions to consider. Most insurance companies will not count current pregnancies as a disability. That simply means that if you (or your spouse, guys) are pregnant at the time of application, and are applying for a personal disability insurance plan, the insurance companies will not touch you. (Turning their back on a pregnant woman, yes) Some companies will refuse your application outright; others will offer a form of disability insurance—but with a special exclusion for your current pregnancy.
Why all the mommy-hating? Well, there's a 100% chance you're going to give birth and become temporarily disabled. The companies don't like those odds; it's just not profitable to accept a few monthly premiums and then turn around and give back six months worth of income to the insured. This seems somewhat obvious, yet many couples try and obtain coverage for their current pregnancy anyway. The insurance companies think of a pregnancy as a “pre-existing condition”, and so usually won't offer coverage once the pregnancy is official.
What Can We Do?
Speaking of the happy couple and the baby, who no doubt have questions about disability insurance. If you will still be needing an insurance policy after the pregnancy happens, then accept a contract with the current pregnancy exclusion and then after delivery, request they remove the item from the contract. You can still get a good disability insurance policy and then possibly cover your next pregnancy, if that's in the cards. If you are employed by a corporation and have a group insurance policy then check to see if disability income is an option there.
As with all forms of insurance, disability insurance pregnancy is best to acquire well before you need it. The best time to apply for individual disability insurance pregnancy is when you're single or married, in good health and not expecting to take any time off.
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