Use Supplemental Insurance to Create Maternity Leave Pay

Most employers do not provide paid maternity leaveWhile any level of income replacement is nice to have,
benefits. These benefits are simply too costly for mostforty five states have no mandated coverage at all.
small and medium sized businesses. Five statesWomen working in these states face a bigger
mandate disability coverage that creates a limiteddilemma: their employer may not offer paid maternity
amount of maternity income, as coverage is cappedleave policy, and/or no group disability benefits at all.
at a fairly low amount. And the female workers inAdding a new mouth to feed and raising a child is
forty five other states have no coverage at all.expensive enough without starting off with six to eight
Supplemental maternity insurance is a great way toweek of unpaid leave. And what if mom needs to
solve this problem. When bought preconception, theseleave work early due to complications, or what if her
policies help create maternity leave income, and allowbaby is born premature and requires care at home for
for protection in case of complications, and prematurean extended period of time?
birth.Supplemental maternity insurance is a great way to
Paid maternity leave is a common benefit in manyplug these holes. Supplemental maternity insurance
European countries. In the United States, this type ofpays cash benefits directly to the insured for mom's
benefit is the exception rather than the rule. A smallnormal labor and delivery, helping to create maternity
percentage of employers provide a direct maternityleave income. Mom's benefit for normal delivery may
leave benefit for their female workers, while othersgreatly exceed the premium she pays. Also, 25% of
provide some type of company paid short termpregnancies result in one or more complications.
disability policy that provides maternity leave coverage.Supplemental maternity insurance will replace her
Another percentage offer disability programs that theincome should she need to leave work prior to her
employees can elect to pay for themselves.delivery.
Five states mandate short term disability insuranceIn addition, 12% of babies are born premature and may
coverage for people who work in the state: Hawaii,need to spend time in the neonatal intensive care unit
California, New Jersey, New York, and Rhode Island.(NICU). Many insurance policies now contain daily
While great to have, these programs may replace onlyco-pays ranging up to $300 to $500 per day. An
a small percentage of income, or they cap out at aextended stay in a NICU can leave new parents with
very small amount. For example, New York statea sizable and unexpected hospital bill. Supplemental
replaces only 50% of income, and caps out at $170maternity insurance will pay additional benefits should
per week. Being one of the states with the highestthis occur, helping to offset these left over expenses.
cost of living, and thereby the highest average incomeSupplemental maternity insurance is a great option to
level, $170 per week is a very small amount of incomeconsider before getting pregnant.
replacement.