How Does Long-Term Disability Work if You Are Going on Maternity Leave?

Maternity leave (or parental leave) is an important time for new parents to bond with their newborns and recover physically after childbirth. In Canada, maternity leave benefits provide a financial safety net for parents. However, what happens if a medical condition arises during pregnancy or postpartum that prevents you from working before or after your maternity leave ends?

This is where long-term disability (LTD) insurance may come in handy. Navigating both LTD benefits and maternity leave benefits can be complicated, especially when trying to determine how the two work together. At Preszler Injury Lawyers, our long-term disability lawyers can help guide you through your unique situation with tailored advice. If you have questions about how your LTD will be affected by your maternity leave, or vice versa, schedule a free consultation with our team today.

Maternity Leave vs. Long-Term Disability Insurance in Canada

Before you can navigate how long-term disability interacts with maternity leave, it’s essential to understand the basics of maternity leave, parental leave, and long-term disability insurance in Canada.

Following the birth of a child, many employees in Canada receive maternity/parental benefits through the government’s Employment Insurance (EI) program, which can cover up to 55% of regular earnings to a maximum amount. The length of your leave or coverage can vary depending on other private insurance or employer-sponsored plans you are eligible for.

In general, federal Employment Insurance (EI) will cover:

• Maternity Leave: Maternity leave is available to birth mothers and is typically 15 weeks long, but can vary depending on your coverage. The leave can start as early as 12 weeks before the baby’s due date and is designed to provide financial and job security during pregnancy and after the birth of a child.
• Parental Leave: Both parents (birth and adoptive) are eligible for parental leave, which can be up to 35 weeks in standard form or 61 weeks in extended form. Again, the length of time you are eligible to take may vary according to additional coverage or policies you have.

Long-term disability insurance provides income protection when an employee is unable to work due to a medical condition that persists for an extended period, typically longer than 90-120 days. LTD benefits may replace up to 60% to 70% of your income, depending on your policy.

LTD insurance may be offered as part of your employee benefits plan or purchased privately. Benefits are intended to help you focus on recovering from your injury or illness without the added pressure of lost wages.

Key Scenarios: LTD and Maternity Leave

Several factors determine how LTD benefits will work if you are going on maternity leave. You should be aware that, regardless of your scenario, medical documentation is vital for both LTD and maternity leave claims. If you become disabled during your pregnancy or after childbirth, you will likely need to provide medical evidence to support your LTD claim. This can include doctor’s reports, medical assessments, and a clear diagnosis of your disabling condition.

Below are the most common scenarios to consider and some information about how to proceed:

1. You Become Disabled Before Maternity Leave Starts

If you become disabled due to a medical condition during pregnancy (for example, complications like preeclampsia or severe morning sickness) and are unable to work before your maternity leave begins, you may be eligible for LTD benefits.

In most cases, LTD policies will require that you use short-term disability (STD) benefits first. STD benefits can cover the initial 17 to 26 weeks of your disability leave, bridging the gap until LTD benefits kick in or your maternity leave begins.

Once LTD benefits begin, they will replace a portion of your income while you are disabled. However, as your maternity leave approaches, you may need to transition from LTD benefits to maternity leave benefits under EI, depending on the terms of your LTD policy.

Important note: If your medical condition persists beyond the standard 15 weeks of maternity leave, LTD benefits may continue if your policy allows it. However, it is unlikely that you will receive both EI maternity benefits and LTD benefits at the same time.

2. You Become Disabled During Maternity Leave

If you experience complications or a medical condition during your maternity leave that would typically qualify for LTD (such as postpartum depression, severe physical injury unrelated to the pregnancy, or long-term postpartum complications), your LTD benefits might not automatically start during your maternity leave.

In this situation, you may continue receiving maternity or parental leave benefits through EI or other means until your leave period ends. Once your maternity leave benefits are exhausted, if you are still unable to return to work due to your medical condition, you can apply for LTD benefits (provided that you meet your LTD policy’s eligibility criteria).

It’s important to remember that many LTD policies have a waiting period (sometimes 90 to 120 days) before benefits begin, so be mindful of this gap when transitioning from EI to LTD.

3. You Become Disabled After Maternity Leave Ends

If you complete your maternity and parental leave but become disabled afterward, LTD benefits may be crucial. In this scenario, your LTD coverage will function regularly, regardless of the type of leave you returned to work from. You will need to file a claim and apply for LTD benefits through your insurance provider.

Steps to Take if You Need LTD and You’re On Maternity Leave

If you believe you may need LTD benefits before or after your maternity leave, you can follow these steps to help you prepare for the claims process:

• Speak with an Experienced Disability Lawyer: Navigating how maternity leave and LTD claims interact can be complex, and mistakes during the application process could delay or jeopardize your benefits. A disability lawyer can provide guidance on how to submit your LTD claim, help you understand your rights, and represent you in disputes with insurance companies.
• Review Your LTD Policy: Check the terms of your LTD insurance, including the waiting period, coverage limits, and what conditions qualify.
• Consult With Your Employer: Speak with your HR department or benefits provider to clarify how your LTD and maternity leave benefits may interact.
• Get Medical Documentation: Work closely with your doctor to document any medical conditions you have that may qualify for LTD.

Are You Going On Maternity Leave While Experiencing a Disability? Talk to Our Long-Term Disability Lawyers Today

Understanding how LTD and maternity leave benefits interact is complicated. By familiarizing yourself with your LTD policy, gathering necessary medical documentation, and planning for gaps in coverage, you can help ease the financial and emotional stress.

At Preszler Injury Lawyers, our long-term disability lawyers are committed to helping you pursue the long-term disability benefits you are entitled to, no matter what your situation looks like. If you have questions about how your pregnancy or maternity leave might impact your LTD benefits, speak with our lawyers today for advice tailored to your circumstances. Contact us today. With offices located throughout Canada, we are available to help wherever you’re located.