Maternity Leave Insurance – Your Complete Guide

maternity leave insurance

maternity leave insuranceMaternity leave is an employee benefit that allows you to take leave when you have a baby. You need financial protection when you’re on leave. That’s why it’s important that you know what maternity leave insurance is and how it can benefit you.

You want your job and your finances to be secure when you go on maternity leave. The only way to do this is if you opt for the best maternity leave insurance coverage on the market. To assist you, I’ve provided a complete guide so you can learn more about the FMLA and states that offer maternity leave.

What’s more, you can find out about long-term disability insurance for maternity leave and how to prepare financially when you’re not working. Keep reading to find out more.

How The FMLA Protects Your Job

The FMLA (Family and Medical Leave Act) is a federal law that protects your job while you’re on leave if you work in an organization with more than 50 employees. This act ensures your job is secure for 12 weeks in a 12 month period when you’re on maternity leave.

When you’re on maternity leave, you should get paid for any unused leave days: PTO (Paid Time Off) that includes sick leave and vacation days. Family member coverage must be maintained during the FMLA leave.

FMLA is designed to help employees balance their work and family lives by allowing them to take unpaid leave for medical or family reasons.

What Is Family Medical Leave Insurance And What Are The Benefits?

Some employees can’t afford to take unpaid leave so they’ll need coverage to assist them financially. Family and medical leave insurance are for paid maternity leave. The insurance provides wage replacements for employees who need temporary leave from work to care for a newborn baby.

Employers are expanding on their parental leave so people don’t fall into financial traps while on maternity leave. By providing maternity leave insurance to employees, organizations will improve employee retention and increase their lifetime earnings and retirement security.

How Does Maternity Leave Insurance Work?

How Does Maternity Leave Insurance Work?Maternity leave coverage allows employees to pay a certain amount of their salaries each month towards the policy. When you go on maternity leave, you will be provided a portion of your wages for 12 weeks while you’re on maternity leave.

The coverage is to ensure that you can afford to stay off work during your caregiving time with your newborn baby, especially if you work on lower wages. Contributions towards the insurance policy will cover administrative costs and insurance benefits.

How Long Is Maternity Leave?

The U.S. doesn’t have standard maternity leave durations. You can take maternity leave for longer than three months or according to your company’s policy. However, you must remember that your insurance will only provide paid maternity leave for up to 12 weeks.

States That Offer Paid Family Leave

It should be noted that not all American states offer paid maternity or family leave. The difference between FMLA federal and state laws is whether maternity leave will be paid or unpaid. Federal provides unpaid leave whereas State Family leave is paid.

The states that provide paid family leave are the following:

  • New York
  • California
  • Connecticut
  • Massachusetts
  • New Jersey
  • Oregon
  • Rhode Island
  • Washington
  • District of Columbia

Other states in the U.S. may require employees to contribute to a paid maternity leave insurance fund.

Short Term Disability Insurance And How It Affects Maternity Leave

Short-term disability insurance for maternity leave can vary but may provide between 50% and 100% of your income for six weeks after you give birth or eight weeks if you have a C-section and require a longer time to recover.

Maternity Insurance coverage may have different requirements, so it’s important to check what the policy provides before you go on leave. Your organization’s HR manager should provide the best advice to claim for state or private policies.

Consult Your HR Manager About Maternity Leave

Every organization in the U.S. may have different policies regarding maternity leave and insurance. That’s why it’s important to consult your human resources manager about your maternity leave and how to prepare for your time off.

By consulting your HR manager, you can find out how your pregnancy will affect your pay and how to secure your job when you’re on leave. Your organization should help you protect your income while you’re looking after your newborn baby.

Preparing Financially With Maternity Insurance Coverage

If your company offers a health savings account or health insurance, you should put more money into it in case of an emergency. The money will be deducted from your salary and you won’t get taxed on it. You can spend this money on other medical requirements such as deductibles and copays.

Try to avoid taking sick leave, vacation days, or personal leave so you can accumulate days to take when you’re on maternity leave. You may want to look at additional insurance policies offered through your organization that provide financial protection while you’re away from work.

Other insurance policies may cover medical bills if you’ve experienced birth complications, but coverages may vary.


What Insurance Covers Maternity Leave?

ACA is an insurance company that covers you when you are on maternity leave. You can also opt for supplement insurance coverage to help you financially or change your health insurance while pregnant.

How Long Is The Average Maternity Leave Offered By Employers?

60% of employers in the U.S. offer 12 working weeks (three months) of maternity leave for employees. 33% of employees may offer longer leave days that include paid or unpaid days.

Do You Get Full Pay During Your Maternity Leave?

Some employees will pay you a certain percentage of your salary during your maternity leave. Additionally, the amount of money you get paid may change during your maternity leave. After 36 weeks, employees no longer have to pay you if you’re still on maternity leave because you’ve stayed away for longer than 12 weeks.

Can You Get Maternity Leave Insurance If You’re Already Pregnant?

Most insurance providers won’t approve coverage if you’re already pregnant. So, if you plan on having children in the future. it’s advised that you sign up for maternity leave coverage so you don’t suffer financial loss when you’re away from work.

Does Insurance Cover The Delivery Of Your Baby?

If you have an insurance policy through the Affordable Care Act, it will cover childbirth and pregnancy. However, if you have an individual insurance policy provided by your employer, you may not be covered for maternity costs.

Final Thoughts

Not all states provide paid maternity leave, so it’s important that you opt for an insurance policy that will cover you if you fall pregnant. You should opt for maternity leave insurance if you plan on getting pregnant because some companies don’t offer coverage if you’re already pregnant.

When you find out that you’re pregnant, you should speak to your human resources manager so you can prepare your leave in advance. Maternity leave insurance or family leave insurance is also meant for employees when they have a medical or family emergency. Find out what benefits the insurance policy provides so you know what you’re paying for each month.

Do you have any first-hand experiences with maternity leave insurance? Let us know your thoughts in the comments section below.