Does Short Term Disability Insurance Pay Benefits for Pregnancy?
- Jul 9
- 2 min read
Short term disability insurance benefits for a pregnancy-related disability are generally possible, subject to at least one of the following conditions, depending on the product:
the policy may cover only complications of pregnancy, not normal pregnancy, or
a longer Elimination Period may be required before benefits begin to accrue (typically 90 days as measured from the first day of disability), or
it may be an employee benefit, or
there may be a pre-existing condition limitation in effect for some period of time after coverage begins (12 months or 24 months are common)
there may be a probationary period, specific to pregnancy, for the first 9 months of the policy's existence
Qualifying, however, can be a challenge. It is generally not possible to acquire coverage on the individual retail market if a person is already pregnant. Having the foresight to purchase in advance is critical. If currently pregnant, insurers will generally respond with a decision to postpone making an underwriting decision until three months after delivery, at which time coverage is made available on the same basis as it would for any other applicant.
When purchased individually, qualifying for a policy is subject to a review of medical information. Medical questionnaires typically ask about:
Current pregnancy
History of pregnancy complications
Fertility treatment
If there is a history of pregnancy complications, this does affect placement strategy and so would be important to proactively offer-up before a market search gets going.
Fertility treatment can trigger an exclusion amendment for pregnancy complications, however some carriers are more liberal on fertility treatment than others, underscoring the importance of choosing an insurer strategically.
What to Look For
The most favorable disability insurance for pregnancy purposes will have two (2) key attributes:
1) Coverage for lost earnings due to normal pregnancy, not just complications, and
2) Short Elimination Period options, such as 7 or 14 days.
This is a rare combination in individual markets. Of the policies that do have this combination, pregnancy claims are kept somewhat under control by a special probationary period for pregnancy, which applies for the first 9 months as measured from the initial effective date when premiums began. Therefore, it would be important to acquire coverage before becoming pregnant in order to let the probationary period expire. Sooner is better, in case of premature delivery.
Keep in mind what happens next. Today the concern is pregnancy, but in economic terms the loss is predictably finite unless there are complications. After you're a parent, the concern will shift to how to stay in control of your own destiny in the face of a more open-ended health problem. For that, a different kind of disability insurance is required which ought to be a part of the same conversation.
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