Suffering from a major illness
or having a disability that does not allow you to work can be very tough
indeed. In such times, apart from your health worries, your major worry
will be that of finances. Sometimes it can also be difficult to predict
when exactly you will be well enough to go back to work, which makes
your financial situation even tougher to manage.
To survive the financial
implications of your disability or medical problems, below are some
things to consider that can be of help:
1. Disability insurance:
If you have individual
disability insurance or your employer has a group disability insurance
policy, you may be entitled to receive disability benefits. Contrary to
what most people believe, disability does not only indicate a crippling
injury. A lot of physical and mental illnesses can be termed as
disability. Thus, find out if you do have a disability and if you are
eligible for disability income, even if it just short term disability
income.
2. Worker’s compensation:
If you have been injured at
work, or if your illness is a direct result of the nature of your work,
then you may be entitled to worker’s compensation. Check your state
laws regarding worker’s compensation and find out if your employer has
any worker’s compensation insurance. When considering a new job that
involves physical risks, you should always check to see if the employer
carries a current and adequate policy.
3. Social Security
disability:
The Social Security
Administration has disability programs under which you may be entitled
to receive social security disability benefits. However, these programs
have strict definitions of disability and may not be available to you
unless your disability or illness is likely to last for more than a
year, or it is bad enough to be fatal. Do find out if you’re entitled
though.
4. Personal health
insurance policy:
Most people have some or the
other type of health insurance. Go through your policy to see if you
also have a disability insurance cover.
5. Change your lifestyle:
Even after receiving all the
financial aid that you are entitled to, you may still not be financially
prepared to survive your disability. Therefore, you need to make some
tough decisions and alter your lifestyle. Sit down with your family and
prepare a family budget (using our free budgeting software makes it
easier) and see where you can cut down expenses. Proper budgeting and
the right spending plan can help a great deal when surviving a
disability.
6. Use your emergency
savings, carefully:
If you practice good money
management, you should have some money put aside for emergencies.
7. Renegotiate loan terms:
If your credit score is good,
you may be able to refinance your loans and get better interest rates.
This can help you to lower your monthly payments. Most lenders are
willing to help people with disabilities or major illnesses, so just
ask.
8. Work part time:
With the popularity of the
internet, there are hundreds of ways to make money from home. Thus, if
you are still able to use a computer, find out what options you have for
home based businesses. Your local library will often have
computers with internet access for you to use and classes on how to get
started.
Although having a disability
or medical condition can be hard on you, both financially and
health-wise, you can survive this time by proper financial planning,
proper budgeting, and smart spending. In addition to that, you may also
have disability benefits and worker’s compensation to help you out.