Comedy of Errors #3: Walking Away From Maternity Benefits When the Wife Is Pregnant
By: K.C. Knouse
Tags: Employment, Money, Maternity, Personal Finance, Benefits

Photo by Jonathan Borba on Unsplash

Comedy of Errors #3: Walking Away From Maternity Benefits When the Wife Is Pregnant

It’s hard to go to work when you feel you are failing at your job.

Most people lose their employee health benefits as the result of a layoff. I walked away from mine and at the worst time — my wife was six months pregnant.

I didn’t like my work

Young, inexperienced, and impatient, I didn’t enjoy the life insurance sales job that provided the health benefits, because I felt I wasn’t any good at it. My regional manager accompanied me on sales presentations then critiqued them afterward. I did everything wrong on every presentation. At least, that’s what I heard.

It’s tough to continue to show up at the office when you think you are a failure. Each day on the job confirmed my belief as I fell farther behind on my sales quota. My employer expected me to work nights and weekends. That didn’t help my attitude, either.

I thought termination was imminent

I was sure the company would fire me as it became apparent that I couldn’t cut it. It was just a matter of time. So I applied for a position as an advertising salesperson for a small, weekly newspaper. My goal was to become a writer one day. What better job than to work for a newspaper, even if my work involved the business side of the paper rather than the editorial side? I figured the editorial staff would get to know me, and it would lead, somehow, to an opportunity to write for them. That was my pipe dream.

The owner of the paper offered me the advertising sales job, and I accepted it. That same day, I resigned my insurance sales position. My boss seemed puzzled by my desire to leave the life insurance business and expressed regret at my decision. This surprised me; he should have been relieved to get rid of such a poor performer. I turned in my office key and sales materials and that was that.

New job, no health benefits

The new job didn’t offer any benefits other than a weekly gas allowance and regular hours of work, 8 to 5. My base pay equaled my salary as a life insurance salesperson. I also earned commissions, which allowed me to increase my take home pay.

To be honest, I don’t remember if I gave any consideration to the effect my decision to change jobs would have on my health insurance coverage. I never inquired about it. If I considered it at all, I assumed we would still be covered since my wife had become pregnant during my time of employment. Only after I left the insurance company did I discover that maternity coverage would not extend beyond my termination date.

The high price of impatience

So there I was with a new job, no health insurance, no savings, a house I’d be closing on in two weeks, and a six-months pregnant wife. But I got what I wanted. The new job fit me better. I liked the work schedule and preferred calling on businesses rather than individuals. I had high hopes for success, but it came at a heavy price.

The doctor and hospital bills totaled $1,500. This happened in 1975 when I made $600 per month. Only the doctor got paid, and only because he demanded payment in advance. The hospital allowed me to pay them in installments of $25 per month, of which I paid none. After a year, they referred the debt to a local law firm for collection.

Lessons learned

What did I learn from this experience?

Never quit a job with maternity benefits when my wife is pregnant. I should have stuck it out for the remaining three months of her term. The insurance would have covered most of the expense. Make sure I understand my benefits and the effect termination will have on them before I quit a job, not after. Communicate with my employer about my job performance when I am in doubt about it. I misread my manager’s opinion of my progress and my potential. Supervisors give constructive criticism to employees who show a capacity for improvement and eventual success. Employers don’t waste time grooming failures. I misunderstood the criticism I received from my regional manager. The responsibility to provide for my family comes before job satisfaction. If working at a job I don’t like is necessary to support my family, that is what I need to do until I can change jobs without putting the household finances in jeopardy.

Couldn’t I have avoided this mistake by asking for advice from someone I trusted? Possibly, but why seek counsel when I thought I knew it all? I had to find out the hard way that I didn’t. I learned the lessons of my mistakes and matured in the process, but it was an expensive education, both financially and emotionally.