Understanding the Colonial Life Disability Insurance Maternity Benefit

Colonial LifeColonial Life Disability Insurance Maternity Benefit is one of the leading worksite benefit insurance companies in the United States.  The standalone Colonial Life Disability Insurance policy and Colonial Life Disability Insurance rider provide an awesome benefit.  We have seen Colonial Life pay out thousands of dollars in maternity benefits over the years — we know it works and we know Colonial Life to be a great insurance company.

To be eligible for a maternity benefit from your Colonial Life disability insurance policy you must be insured for disability due to sickness.  It will not pay a benefit if you are insured for only disability due to an accident.  We always recommend, and Almega Life Solutions will not sell, a disability insurance policy unless both you are insured against both accident and sickness.

Next, to be eligible for a Colonial Life disability insurance policy you must be actively working.  You cannot get a disability insurance policy if you are a stay at home spouse or don’t work.

How does Colonial Life’s disability insurance policy provide a maternity benefit?

First, and foremost, you must be insured for 9 months prior to delivery.  Colonial Life, like most disability insurance companies, doesn’t provide a benefit for pre-existing conditions for the first 12 months after the policy is issued.  This helps them avoid issues when people buy an insurance policy fully expecting to file a claim.  With maternity the pre-existing limitation is reduced to 9 months as Colonial Life assumes you could not have been pregnant at the on-set of the policy if you deliver 9 months after the policy is issued.

So if your policy is effective January 1st and you deliver October 2nd the policy will pay its disability benefit.  If you deliver September 15th the policy will not pay its maternity benefit.

What if my baby is born pre-mature?

Colonial Life will not pay you a benefit if the baby is born prior to the policy being issued for 9 months.  So if your policy is effective January 1st and you deliver August 15th the policy will not pay a benefit to you.

Will Colonial Life pay if I have a complication during my pregnancy?

Yes.  Colonial Life will pay the disability benefit for the period of time you are ordered off work due to the complication.  Colonial Life considers this a sickness and will pay a benefit to you.  If you were not pregnant before your coverage effective date, pregnancy complications, such as gestational diabetes and pre-eclampsia, are treated just like any other covered sickness.

How does the elimination period factor into how the maternity benefit is paid?

When you file your claim, your benefits will start after you’ve fulfilled the elimination period of your policy.  The elimination period works like a deductible on your car insurance.  The elimination period makes sure you don’t file a claim if you are off work for 2 days with the flu.  Most Colonial Life Disability Insurance policies are issued with a 7 day or 14 day elimination period.

For example, if you have a 7 day elimination period and a $2,000 monthly benefit and you are off work for 6 weeks Colonial Life would pay you $2,500.  To understand the math, subtract 1 week (7 day elimination period) from the total time you are off work leaving you with 5 weeks.  Then apply your monthly benefit pro-rata to your remaining time off work (5 weeks).

How do you file a maternity disability claim?

If you have no complications in delivery, you should file your claim after your delivery.  If you experience complications you should file your claim immediately after the doctor orders you off work.

Does the maternity leave benefit get paid to me?

Yes.  Colonial Life pays you directly.  The money is not paid to your employer, the hospital, or your health insurance company.  The money is paid directly to you to use as you see fit.  Furthermore, your disability benefits are not affected by your employer’s leave of absence program, the Family Medical Leave Act (FMLA), your sick leave or paid time off/vacation time.

How can I apply for a Colonial Life Disability Insurance policy?

To be eligible for a Colonial Life policy either your employer must offer Colonial Life to the employees or you must be a member of a trade association or union which offers Colonial Life.  If neither apply to you please contact us at 480-442-5592 as we would love to speak with you about introducing Colonial Life to your employer.  There is no cost for your employer to offer Colonial Life benefits and may even save the employer money in payroll taxes.

If you are a member of a trade association or union which does not offer Colonial Life please also contact us to speak about introducing Colonial Life to the trade association or union.  It does not cost the trade association or union anything to offer these benefits and may help the association or union increase or retain members.  Currently, Almega Life Solutions works with several trade associations to offer Colonial Life, the largest of which is a trade association for licensed cosmetologists in Arizona.

Almega Life Solutions has a good deal of experience working with employers, trade associations, and unions to offer employees and members the various insurance programs, including disability insurance, provided by Colonial Life.