Short Term Disability & Other Necessary Nuisances

StarbucksShip

As part of our pre-TTC prep my husband and I are trying to secure insurance policies, wills, and finances. My company did not offer short-term disability (STD), but it was recently bought by a larger that does. I won't qualify for their STD until January 2016. That's months after we want to start TTC*, so I thought I'd check around for individual policies. Chances are NO carrier offers this; Aflac doesn't and as far as I can tell they corner the market on supplemental individual policies. The Aflac agent I spoke to said that an individual Critical Care could cover hospital, but I want that sweet, sweet missed wages (silly America and it's lack of legally-mandated maternity benefits). Anyone else looking into STD or other policies?

If I find anything, I'll definitely relay it back to you! 

*My understanding is that you have to be on an STD policy for 10 months before giving birth.

FemShep

Yes, in general, you need to be covered by STD before getting pregnant if you want to qualify for benefits for pregnancy-related disability.

Where do you live?  Some states offer state STD.  Unfortunately, I don't know of any insurance company that allows individuals to purchase STD coverage.  

Don't forget to get life insurance in place as well.  Good luck!

StarbucksShip

Thanks! I checked it out on Google and my state, like all private individual policies, doesn't cover "normal" childbirth. It kinda blows for those women who don't have an option through their employer. But, it IS possible to get an private policy and depending on your line of work or salary it might be preferable to your employer's policy. 

I suppose the good news is the Motley Fool says you're better off putting your money in liquid savings.  More money for that life and LTD policy, I guess!

b-dubs @FemShep, I LOVE your handle.

FemShep

Aww, shucks @purrbucket

The real question is... Paragon or Renegade?

peppers1227

I live in a state where STD is required, but there is a cap on how much it is, not sure off the top of my head. My company then meets the difference between that and some percentage of your pay. I think I am required to use all my sick time before that kicks in though. That worries me, because after you have the baby they tend to get sick from time to time and I don't know what you do about that when back from mat leave.

Sugarplum0217

What state are you in? Instead of trying to find a policy, why not start saving for your leave? Since my FI and I got pregnant so quickly, as soon as we found out we started saving. Did a quick little budget of all the bills and added in groceries and house stuff. Then we started putting money into a savings account every month. I am lucky in that I did get std from my state, especially since I was off work a few weeks early, but since we planned throughout my pregnancy so well I haven't touched that money yet.

amywoods824

My employer, though large, does not offer STD. I was able to find a private policy through Mutual of Omaha which actually covers pregnancy/maternity.

StarbucksShip

We fully intended, and have been, saving enough to cover six months expenses and what we estimate the normal birth's costs (we're lucky to have a state database that provides an average of hospital procedures for things like births). But, I think it's prudent to evaluate the cost of an STD premium to the payout if possible. Mainly because with all my saving, FMLA is still lost income for me. Not to mention if I need to take time off post-birth. That would be a day where I lose my income because sick leave is spent during FMLA. 

So if there's anyway to supplement that savings I'd like to investigate all my options.

@amywoods824 Thanks for the tip!

Finally, Renegade.

jnnfrrose6

I'm not following how you won't be able to use the new company's STD. You said you'd be eligible January 2016. If you got pregnant this month, unless you had complications, you'd be having a baby early 2016. Wouldn't that make you eligible?

bsckgb7

Most of the time I think you have to have the policy for 10 months before it kicks in.  So 10 months from Jan 2016.

Designermomma

Wow I had no idea. I could have sworn Aflac had one but maybe they did away with it since the last time I looked. Maybe try to find another job with good benefits? Here there is a 3 month waiting period usually but then you get all the benefits after that. It might be worth a job switch if you're not crazy about your current one.

peppers1227

Designermomma said:

Wow I had no idea. I could have sworn Aflac had one but maybe they did away with it since the last time I looked. Maybe try to find another job with good benefits? Here there is a 3 month waiting period usually but then you get all the benefits after that. It might be worth a job switch if you're not crazy about your current one.

You're usually not eligible for FMLA until you have been with an employer for 12 months so she still wouldn't be eligible for mat leave benefits.

StarbucksShip

Thanks for all the responses! Just to chime in, we were hoping TTC sooner than Jan 2016 and I'd rather have an STD policy before I needed it rather than later. Mainly cause of the 10 month stipulation. As for changing jobs, I reallllly like mine. My lack of access to STD aside, it's been fantastic in other ways for a lot of the new parents who work here. And I'm grateful for that, but I personally think having access to FMLA and a percentage of wages while out is a fair thing to hope for.

edit: wording

jnnfrrose6

peppers1227 said:

Designermomma said:

Wow I had no idea. I could have sworn Aflac had one but maybe they did away with it since the last time I looked. Maybe try to find another job with good benefits? Here there is a 3 month waiting period usually but then you get all the benefits after that. It might be worth a job switch if you're not crazy about your current one.

You're usually not eligible for FMLA until you have been with an employer for 12 months so she still wouldn't be eligible for mat leave benefits.

You have to be with the employer for 12 months, so you wait 3 months from hire date to start trying. If you're lucky and get pregnant quickly, the baby will be due right around your year anniversary at work and you're eligible for FMLA (voice of experience here. My EDD was 2 weeks before my 1 year anniversary because I didn't look into this. Luckily my work didn't push the issue and still let me use FMLA).

bmo88

amywoods824: If you don't mind me asking, about how much was your Mutual of Omaha policy? And did it provide coverage for maternity leave/lost wages while not working?

amywoods824

Mine is around $100/month. It covers about 80% of my monthly take home and also includes a hospital rider (pays a set amount per day if I'm hospitalized). It's the only private STD provider I found which does cover maternity leave.

I've not had to make a claim on it yet, but another coworker of mine had a similar policy with MOH when she had her daughter 3 years ago and it covered her entire 12 week maternity leave.

bmo88

amywoods824: That was through Mutual of Omaha? I called them this week to get a quote and they told me they don't offer policies that will pay actual maternity leave income for a normal birth. They said it wouldn't be cost effective to pay for maternity leave because it's guaranteed money they would have to pay out. They said they would only pay out if an injury or ailment during the birthing process caused the individual to not be able to return to work.

Is there a particular policy you purchased through them? 

amywoods824

I'll have to check the specifics of my policy. Sorry to cause confusion

bmo88

amywoods824: No worries, I was just curious and I am hopeful since my work doesn't offer paid maternity leave (like most places).