Pregnancy Disability Insurance

By Travis Christy, White Coat Insurance

One of the most common questions I get from female physicians and professionals is whether disability insurance covers maternity leave or pregnancy-related disabilities. For years, the answer has largely been no. Most individual disability insurance policies only cover complications from pregnancy—such as postpartum depression, bedrest, or extended medical recovery—while excluding coverage for normal childbirth.

But that just changed.

Illinois Mutual has released a new individual short-term disability insurance option, and it comes with a major benefit. Normal childbirth is now covered as a disability after the policy has been in effect for nine months. This is a huge development for female professionals who want to protect their income while taking time off to have children.

This post will explore disability insurance and its relationship to pregnancy—from the most common pregnancy complications to how disability insurance carriers address coverage for these situations. We’ll examine what qualifies as a pregnancy-related disability and the options available to protect your income during such events.

Illinois Mutual’s Short-Term Disability Offering and How It Works

Illinois Mutual has launched a new individual short-term disability insurance policy, making it the only company currently offering this type of coverage in the individual disability insurance market. This plan stands out by covering normal childbirth, a rare benefit in disability insurance. While it provides a simple and affordable way to protect income during short-term disabilities, it does have some limitations to keep in mind.

Advantages of Illinois Mutual’s Short-Term Disability Policy

• Normal childbirth: Unlike most disability insurance policies that only cover pregnancy complications, this policy allows standard maternity leave to qualify for benefits after nine months of coverage.
• Fast and simple application process: Underwriting decisions are made quickly, possibly in three days or less.
• Covers a range of disabilities: Includes coverage for injuries, illnesses, and childbirth.
• Short elimination periods: In many states, benefits can start in as little as zero to seven days (zero days for injury or seven days for illness-related disabilities).

Drawbacks of Illinois Mutual’s Short-Term Disability Policy

• Total disability only: The policy does not offer partial disability benefits. There is no partial disability protection.
• No customization: There are no additional or optional riders to expand coverage.
• Income requirement: Applicants must earn at least $8,000 per year to qualify.
• Benefit cap: Maximum benefit caps at $3,000 per month or 60% of income, whichever is less. This more than likely would not be enough for high earners.
• Limited long-term protection: This is a short-term plan only covering up to two years of a disability (per occurrence). It is not a replacement for long-term disability insurance.

Who Should Consider This Coverage?

This policy may appeal to nurses, chiropractors, physicians, medical professionals, and others looking for short-term disability protection, particularly those planning for pregnancy. However, given the relatively low benefit cap of $3,000 per month, many in the medical field may find that self-insuring for short-term disabilities—including maternity leave—makes more financial sense. With a strong emergency fund, covering a few months of lost income due to childbirth or a temporary disability is far less financially devastating than experiencing a long-term disability without adequate long-term coverage.

That said, for medical residents, fellows, and early-career physicians, this policy could provide some financial security during child-bearing years, especially for those with limited savings. While it does not replace the essential need for long-term disability insurance, it offers basic income protection that may be useful in specific situations.

The Differences Between Short-Term Disability, Long-Term Disability, and Maternity Leave

Short-Term Disability (STD) for Pregnancy

As of this writing, the short-term disability insurance available in the market are employer-sponsored plans and now the Illinois Mutual offering (above). Other short-term plans can pay when expectant mothers are unable to work due to pregnancy complications but not normal childbirth. Typically, STD policies cover a portion of your income if you can't work due to medical reasons. This coverage can begin before birth if you need to go on bed rest or have complications.

• Typical short-term disability pregnancy: If complications arise during pregnancy, STD may kick in before the actual birth and after the elimination period is met. Typical STD plans will have a seven-day to a 30-day wait period before benefits will be paid. Benefits can last anywhere from one month to two years.
• Short-term post-maternity disability: After childbirth, the standard recovery period is usually 6-8 weeks (depending on whether the delivery is vaginal or via C-section), during which STD may pay benefits if the definition of disability is met.

Does STD Cover Maternity Leave?

It can as long as there’s a pregnancy complication, like recovery from a C-section or post-partum depression. However, leave taken for personal or family reasons unrelated to medical necessity isn’t covered.

Long-Term Disability (LTD) for Pregnancy

LTD insurance provides financial protection for extended periods—typically until retirement age—when you can't work due to a serious medical condition, including complications from pregnancy. Unlike STD, LTD is designed for disabilities lasting months or years, and it can be obtained through employer-sponsored plans or the private market.

• LTD for pregnancy complications: If severe complications arise during pregnancy or childbirth (e.g., postpartum depression, pelvic floor injuries, or prolonged recovery from a C-section), LTD may provide income replacement after the elimination period (anywhere from 30-720 days).
• LTD post-pregnancy: Employer plans usually cover 50%-70% of your income, often up to retirement age, if the condition meets the definition of long-term disability. Private LTD policies, available outside of employer plans, offer customizable features like higher benefit amounts, portability, and riders to cover additional needs.

Does LTD Cover Maternity Leave?

LTD only covers leave if a medical condition prevents you from working in your job for an extended period—not for routine maternity leave or personal time unrelated to sickness or injury.

Maternity Leave and Payment

Understanding whether you get paid during maternity leave depends on your job, the state you live in, and the benefits your employer offers.

Can Maternity Leave Be Paid?

It depends on several factors. If you have a disability insurance policy, it may provide benefits during maternity leave, but this typically depends on whether you meet the policy’s criteria for being disabled. Additionally, some employers offer paid maternity leave as part of their benefits package. For example, the Mayo Clinic provides up to six weeks of paid maternity leave for both birth mothers and non-birth parents. Check with your hospital to see what’s available, or find options by getting a quote from a WCI-vetted insurance partner.

How Does Maternity Leave Work?

The specifics depend on your employer’s policies or state laws. Paid leave options may be available through employer policies or state programs, though these benefits are not available universally.

The Family Medical Leave Act (FMLA) vs. STD and LTD Benefits

The Family Medical Leave Act (FMLA) and STD insurance are two different types of coverage, but they can be used together for maternity leave.

• FMLA: Provides up to 12 weeks of job-protected leave, but it’s unpaid. It covers pregnancy and childbirth as qualifying events, but whether you receive income during that leave depends on whether you have STD coverage or other benefits.
• FMLA vs. short-term and long-term disability: FMLA guarantees job protection for a period of time, while short-term and long-term disability offers income protection by providing benefits to compensate for lost wages due to sickness or injury—whether maternity-related or not—before and after the birth of a child.

Pregnancy Disability Leave and the Military

The Military Parental Leave Program (MPLP) provides fully paid leave for service members. Offering up to 18 weeks of leave for birth parents (including maternity convalescent and parental leave) and 12 weeks for non-birth, adoptive, and foster parents, the MPLP ensures time for recovery and bonding with a new child without financial hardship. Flexible leave options within the first year address family needs while maintaining a military unit’s readiness.

More information here:

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Individually Underwritten Disability Insurance for Maternity

Private Insurance Options

Many physicians turn to private income protection, or individual disability insurance, to ensure their income is protected in the event of a long-term disability, including complications related to maternity leave. However, obtaining coverage for an existing pregnancy presents unique challenges and often requires careful planning.

Private Long-Term Disability Insurance Rules for Maternity Leave

If you're already pregnant, most private insurers will not cover your current pregnancy. Policies generally need to be in place before conception. Also, policies will only pay for pregnancy complications.

Can I Buy Disability Insurance for Maternity Leave?

Yes, Illinois Mutual now offers a product covering normal pregnancy and/or pregnancy complications that can be bought on a short-term individual basis. As for other policies out there, including long-term disability plans, they may only pay in the event of pregnancy complications that result in sickness or injury that prevents working. In addition, you can purchase policies that include maternity complication coverage, but you’ll need to plan ahead. Once you're pregnant, your options may be limited, and a policy may be sold with an exclusion for pregnancy. All of the Big 5 disability insurance carriers offer pregnancy complication-related disability protection.

Pregnancy Exclusion on Individual Disability Insurance

A pregnancy exclusion on an individual disability insurance policy means the insurer will not cover disabilities related to pregnancy or childbirth. This exclusion is typically added if the applicant is currently pregnant and applying for coverage or if she has a history of complications—such as preeclampsia or preterm labor—which the insurer views as a higher risk.

A pregnancy exclusion is not always permanent, as insurance companies may reconsider and remove it in certain circumstances. For individuals who obtain coverage during a complication-free pregnancy, the removal process is typically easiest. It often involves submitting updated medical records to demonstrate no ongoing risks. However, if previous pregnancies involved complications, removing the exclusion may prove more challenging and require additional documentation or time to establish a lower-risk profile.

Some insurance carriers may postpone new coverage for individuals who are currently pregnant. However, after childbirth, they may be willing to issue a disability policy without exclusions, providing full coverage for future pregnancies.

Taxes on Disability and Maternity Leave Benefits

If you receive payments through short-term, long-term, or individual disability insurance, the question of whether the income is taxable depends on how the premiums were paid. If your employer paid the premiums, the benefits are typically taxable. If you paid the premiums yourself, the benefits may be tax-free.

Most Common Pregnancy Complications That May Qualify for Disability Benefits

Pregnancy complications can significantly impact a woman's ability to work, particularly for female physicians and medical professionals whose roles are physically and mentally demanding. Below is an overview of common pregnancy complications, their prevalence, and potential effects on employment—along with relevant statistics and sources.

Very Common Pregnancy Complications

Iron-Deficiency Anemia

• What it is: A condition where the body lacks enough healthy red blood cells to carry oxygen to tissues, caused by increased iron demands during pregnancy.
• Risk: The prevalence of anemia increases during the second and third trimesters. The prevalence for white women and for Black women, respectively, was 3.5% and 12.7% during the first trimester, 6.4% and 17.8% during the second, and 18.8% and 38.1% during the third.
• Severe cases: Extreme fatigue, dizziness, heart palpitations, and complications like preterm labor or low birth weight.
• Potential outcomes: Weakness, reduced focus, and the inability to perform physically or mentally demanding tasks. Severe cases may require iron infusions or blood transfusions.
• Why a disability claim may occur: Fatigue and inability to work long hours or handle high-stakes medical duties. Bed rest may be recommended to prevent further complications.

Postpartum Depression (PPD)

• What it is: A mental health condition characterized by persistent sadness, anxiety, and exhaustion after childbirth.
• Risk: Affects 10%-15% of new mothers.
• Severe cases: Inability to care for oneself or others, including patients; thoughts of self-harm or harm to the baby.
• Potential outcomes: Impaired emotional and physical functioning, affecting job performance and caregiving roles.
• Why a disability claim may occur: Therapy and medication may require time away from work. Severe cases may necessitate hospitalization or bed rest to address mental health concerns.

Gestational Diabetes

• What it is: A type of diabetes that develops during pregnancy due to hormonal changes affecting insulin sensitivity.
• Risk: Affects 5%-9% of pregnancies in the US.
• Severe cases: Nerve damage, organ stress, or complications leading to Cesarean delivery.
• Potential outcomes: Fatigue, frequent medical appointments, and complications that interfere with work schedules.
• Why a disability claim may occur: Strict management may require frequent rest periods or reduced work hours. Severe cases may necessitate bed rest to manage blood sugar and prevent complications.

Gestational Hypertension (Including Preeclampsia)

• What it is: High blood pressure during pregnancy, with preeclampsia involving organ damage, usually to the liver or kidneys.
• Risk: According to the CDC, hypertensive disorders in pregnancy affect 5%-10% of women in the United States. It’s more prevalent in lower-income communities, but it has increased across all demographics due to rising maternal age, growing obesity rates, and increased prevalence of other cardiometabolic risk factors.
• Severe cases: Progression to eclampsia (seizures), stroke, or maternal death.
• Potential outcomes: Bed rest, hospitalization, or early delivery to manage symptoms and prevent complications.
• Why a disability claim may occur: Strict bed rest is often prescribed to manage blood pressure. Hospitalization may prevent work altogether.

Infections (e.g., Sepsis, Endometritis)

• What it is: Bacterial infections during or after delivery, often involving the uterus (endometritis) or bloodstream (sepsis).
• Risk: Affects 5%-7% of pregnancies, with sepsis being life-threatening.
• Severe cases: Organ failure, chronic pain, or death.
• Potential outcomes: Significant recovery time and ongoing medical care may be required. It can be life-threatening.
• Why a disability claim may occur: Bed rest or limited activity is often recommended.

Pelvic Girdle Pain (PGP)/Symphysis Pubis Dysfunction (SPD)

• What it is: Shooting pain in the pelvic joints and ligaments due to pregnancy-related changes in alignment and mobility.
• Risk: Mild to severe symptoms affect up to 30% of pregnancies.
• Severe cases: Chronic pain and the inability to walk or stand for long periods.
• Potential outcomes: Physical limitations affecting daily life and work.
• Why a disability claim may occur: Bed rest or physical therapy may be required. Mobility issues prevent standing, walking, or physically demanding tasks.

Rare Complications

Postpartum Hemorrhage (PPH)

• What it is: Excessive bleeding after childbirth due to uterine atony, retained placenta, or severe tears.
• Risk: Occurs in 1%-5% of deliveries.
• Severe cases: Life-threatening blood loss requiring transfusions or surgery.
• Potential outcomes: Severe anemia, prolonged weakness, and extended recovery. In some cases, death can occur.
• Why a disability claim may occur: Bed rest is often required to recover from blood loss. Surgery or medical intervention most likely will require time off work.

Placental Abruption

• What it is: Premature separation of the placenta from the uterine wall, leading to bleeding and fetal distress.
• Risk: Affects 1% of pregnancies.
• Severe cases: Emergency delivery to save the mother and baby; risks include organ damage and fetal death.
• Potential outcomes: Extended recovery due to surgery or complications. It can be fatal to the mother.
• Why a disability claim may occur: Hospitalization and bed rest are required. Recovery time after delivery prevents work.

Hyperemesis Gravidarum

• What it is: Severe nausea and vomiting leading to dehydration and malnutrition.
• Risk: Occurs in 0.3%-2% of pregnancies.
• Severe cases: Hospitalization for IV fluids; the inability to eat or drink.
• Potential outcomes: Prolonged bed rest or treatment.
• Why a disability claim may occur: Bed rest or hospitalization makes work impossible. Extreme fatigue prevents functioning in high-demand professions.

IVF and Infertility Treatments

While IVF and infertility treatments are not typically considered disabilities, complications—such as Ovarian Hyperstimulation Syndrome (OHSS) or recovery from invasive procedures like egg retrieval—may qualify for STD benefits. Emotional impacts, including anxiety or depression related to infertility, may also be covered under certain policies. However, coverage generally applies to specific complications or recovery needs rather than the treatments themselves.

If infertility is an existing condition at the time of applying for disability insurance, carriers will often apply a pregnancy exclusion due to the increased likelihood of claims related to these treatments or complications. The exclusion is typically permanent.

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How Much Should You Pay for Maternity Individual Disability Insurance?

Female physicians can expect to pay more for disability insurance than their male counterparts because women are statistically more likely to become disabled. Expect to pay $3-$5 annually for every $100 in income you want to cover. In essence, if you’re making $100,000 a year and you cover all of it, expect to pay $3,ooo-$5,000 per year in premiums.

Insurers base premiums on risk, and women file more disability claims and often experience longer claim durations compared to men. A major contributing factor is pregnancy-related claims, including complications and recovery periods associated with childbirth. Additionally, women have higher rates of certain disabling conditions, which further influence premiums. These risk factors result in higher costs for women seeking comprehensive disability insurance coverage.

The Bottom Line

Disability insurance is essential for protecting income. Securing coverage before a disability occurs is important, as insurance carriers may impose exclusions or deny coverage for pre-existing conditions, including pregnancy-related complications. By planning ahead, you can ensure that short-term, long-term, and/or individual disability insurance is in place to provide financial stability when it’s needed most.

For those seeking comprehensive coverage—including protection for pregnancy-related complications—get a quote from a WCI-vetted insurance agent. These agents specialize in physicians and other high-income professionals looking to obtain disability insurance.

Have you ever had to use disability insurance for a pregnancy-related issue? Was it difficult to get approved? How much did having that insurance help your financial life?

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