What does short term disability insurance cost? The majority of our site visitors are seeking policies which cover childbirth – a planned event. The answer may surprise you when you compare the cost to the expected maternity leave payment. The comparison explains some extra steps that may be needed to get a policy.
- Create maternity leave income for normal childbirth
- Provide security just in case of the unexpected
- At no additional cost
Benefit Payments for Maternity Leave
Maternity leave pay for normal childbirth, plus security for the unexpected at no additional cost may sound too good to be true. In a way it is. There are some extra steps needed to make this a reality. Understanding the monthly premium costs compared to the expected benefit is one important step towards getting a policy covering normal childbirth. What value is there in knowing what short term disability costs if you don’t know the value?
Anyone can get sick or hurt at any time and lose their income. Women of childbearing age have an additional incentive to get this important coverage: normal childbirth is covered under certain policies. This is a medical event many plan in advance.
Short Term Disability Insurance Cost
Let’s suppose you had some information about a stock. Based upon that information you thought that the stock might triple in value in one year, and possibly could be worth ten times what it cost to buy. Would you buy that stock? Would you make an extra effort to do so? If you are planning a pregnancy, you have a similar scenario.
Hospital indemnity insurance is another policy that covers normal childbirth and pays maternity benefits directly to you. In addition, an extra payment may be made if your infant is born prematurely, or spends time in Neonatal Intensive Care (NICU) for medical complications. Accidents and illnesses are covered at no added cost. Consider these two policy configurations that pay benefits for normal childbirth:
Short term disability
- 7 day elimination period
- 12 month payment duration
- $3,000 monthly payment amount
- $3,000 payment upon admission
Short Term Disability
Cost to Value
|Cash to you for vaginal delivery|
|Cash to you for c-section delivery|
Short term disability makes different maternity payments based upon type of delivery. Do some simple math. Suppose you make ten monthly premium payments before delivering your baby. The payment for childbirth averages 35 times the monthly premium cost.
Once you understand the cost and value equations it provide perspective on why you can only purchase these policies in one place (voluntary benefit at work), and why you must start at the right time (prior to conception).
Plus Security for the Unexpected
What does short term disability insurance cost to cover unexpected medical events? The premium costs outlined above include all payments needed to keep your policy in force. The coverage for unexpected medical events is already included.
Suppose you deliver a perfectly healthy baby by c-section after making ten premium payments. Your benefit is almost four times the cost of the policy covering something you are planning to do – deliver a perfectly healthy baby. Now consider that both polices may also make further payments in case of:
- Pregnancy complications
- Premature birth
- Postpartum disorders
Your total benefit may easily exceed ten times what your premium cost – for scenarios that are quite common during pregnancy. Is this worth a little extra effort? Remember, there is no direct cost to your employer to give you this important option.
No Additional Cost
The most amazing aspect of the value proposition for these two policies is that all of these events may be covered in one policy. The premium you pay in advance of your planned, normal childbirth also covers you for those unplanned medical events as well.
In fact, most people buying these policies are concerned only about the unplanned events. Half the policy holders are men. Half the women purchasing these policies are past their childbearing age.
So what does short term disability insurance cost? For women of childbearing age their answer is much different. Take advantage and get a policy covering childbirth.