How Much Maternity Leave Pay Do You Need?

How much maternity leave pay do you need? The only viable answer to this question is: "it depends". The amount of maternity leave pay needed depends upon several factors: the income of your spouse, your level of fixed spending already in place, the health of your pregnancy, and your overall health as well. Most American women fall woefully short in allowing for their lost income. Short term disability insurance is a great way to close the gap.

Income of the Spouse

The income of your spouse is an important consideration when planning and budgeting for a pregnancy and new baby. Many husbands are the primary bread-winner. In the past it was expected that the man of the house would be the sole earner, while the lady stayed home. Things have changed to say the least. While many husbands earn enough to cover everyday living expenses in the traditional manner, many more households now see the woman as the primary breadwinner. In these households it becomes vital to put in place a plan to replace mom's income during her maternity leave.

Existing Spending Level

Even more common these days are two income households were expenses exceed income. Although both husband and wife are working and earning an income, spending habits keep them behind. Many two income households have stretched to purchase homes, furniture, cars and other items on credit. Banks are happy to lend money to credit worthy households with stable incomes. And two income households present more reliable income streams to repay these loans. Until of course a couple decides it's time to start a family. Mom's pregnancy means at least six weeks of lost income, on top of the extra medical bills, and in addition the added costs of feeding and clothing a new child.

Health of Your Pregnancy

A pregnancy means at least six weeks of lost income during maternity leave, but a large percentage of pregnancies come with far more missed time from work. Roughly thirty percent of pregnancies deliver via c-section which is invasive surgery requiring an additional two weeks of recovery, while introducing the risk of infection. Approximately twenty-five percent of pregnancies will experience one or more complications, requiring mom to miss unplanned time away from work prior to delivery. In addition many women need to extend their maternity leave in order to recover from a host of delivery complications including: postpartum hemorrhage, depression, etc.

Finally any one of us could get sick or hurt at any time causing us to miss extended time from work. Lost income is a factor in every one of these situations.

Partial Maternity Income Not Sufficient

Most couples fall short in budgeting for these events when planning a family. We all want and look forward to a healthy happy pregnancy, delivery, and baby. But reality suggests that complications can and do arise. If a couple falls into the majority who's spending exceeds income, the financial consequences can be devastating. In these cases, partial maternity leave pay for normal delivery may not be enough.

Short Term Disability an Answer

Short term disability insurance is a must-have for many couples planning a family; it creates additional maternity leave pay, and security just in case. Some couples work in one of five states with mandatory coverage providing partial income replacement; they find that short term disability provides a higher level of income replacement.

The majority of couples need to purchase short term disability on their own to have any maternity leave income at all. When purchased prior to conception short term disability insurance covers mom's normal labor and delivery, plus time missed due to pregnancy complications, delivery complications, accidents, and illnesses.