4 Essential Financial Planning Steps for People Who Live With Disabilities
Living with a disability can mean living with extra care costs. While you may be fully prepared to pay for those expenses now, life can be full of unexpected surprises. If those surprises impacted your income, whether due to a job loss or sudden injury, could your family afford the added expenses? If you can’t readily answer this question, it may be time to sit down and come up with a financial plan for your future. Without adequate planning, your loved ones could end up footing the bill and feeling overwhelmed. Thankfully, these steps can prevent that added stress.
Signing Up for Adequate Life Insurance
Although no one likes to think about it, if you pass away, that can put an immense financial burden on loved ones. But you can help your loved ones avoid this hassle by buying life insurance online. Online calculators and comparison charts make it easier than ever to shop for life insurance without the need to speak with an agent or even leave your own living room. In the event of your untimely passing, your loved ones can use the proceeds from your policy to replace lost income and help pay for other living costs. You should be aware, however, that a Schizophrenia or Bipolar Disorder diagnosis might make it tough to qualify for a large sum. Instead, you may need to apply for a guaranteed benefit policy, which is often more expensive and has a lower benefit.
Adding a Final Expense Insurance Policy
If you want even more financial protection for your surviving loved ones in the event of your death, you should also consider purchasing final expense insurance. Unlike life insurance, this sort of policy typically only pays out enough to offset funeral expenses, unpaid medical bills, and other costs that are directly related to your death. By adding final expense coverage, you can provide some added financial cushion for family members so that they can reserve payouts from your traditional life insurance policy for other costs and expenses. The average American funeral can cost $7,000 to $10,000, and that’s only for minimal burial and memorial options, so having extra final expense coverage could save your family a lot of stress during their time of grief.
Considering Long-Term Care Insurance
Will you need long-term care in the future? Over half of all seniors in America will need some variety of long-term care in their lifetime, and the costs of that care can be overwhelming, even if seniors only need care for a couple of years. So if you want to be prepared for your care needs, you need to come up with a financial plan for covering long-term care expenses. For many people, that means buying long-term care insurance. If you are currently in your 60s, 50s, or even younger, long-term care insurance can be much more affordable, so the key is to start shopping early. Purchasing long-term care insurance can prevent your spouse, children, or other family members from having to struggle to find ways to pay for the long-term care you may need. You may also be able to help pay for long-term care by selling your home, so it’s a good idea to stay informed on how much you can make from a sale. Keep in mind how much equity you have in your home and the assorted fees, taxes, and commissions you’ll owe after selling.
Saving Enough for Other Retirement Expenses
Care expenses can already be a major financial burden for retirees, but there are a few unexpected healthcare costs that can take seniors by surprise. Dental care, prescription drugs, and preventative care can all result in added expenses that are not covered by traditional Medicare policies, so it’s especially important for those who are living with disabilities to include these potential healthcare costs in their financial plan for retirement. Estate planning is also important, and signing up for life insurance can be a good start. Still, your estate plan should also include legal documents that will allow loved ones to make decisions regarding your care, your estate, or your final expenses, including a will and the right power of attorney documents.
You may not be able to see into the future, but you don’t need superpowers to create a solid financial plan for your future expenses. Living with a disability can mean even more expense for your loved ones if something should happen to you. So make sure that you have a financial plan for both the expected and the unexpected.
Thank you Ed Carter for writing this and caring about many by sharing such helpful information.
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