The Basic Guide to Financial Planning for People With Disabilities
Many people with disabilities have to navigate the world of personal finance while managing the high costs of expensive medical bills or ongoing treatments. Getting organized and prepared for your financial future is hard enough when you’re not dealing with these extra expenses, but for people with disabilities, it’s a more complicated task.
However, people with disabilities should be aware that thinking ahead when it comes to their finances is key, especially if they know they may need long-term care or have to move into an assisted living facility someday. You can never predict what the future might hold, so it’s best to start getting ready today.
What can people with disabilities do to ensure they are able to afford the care they need later in life? Here are a few basic personal finance tips to help you and your loved ones start planning.
When it comes to assisted living facilities and other long-term care services, costs can vary widely. Your healthcare expenses will be unique to your personal situation, so take some time to think very seriously about your future.
If you will need assistance with daily tasks, would you prefer an aide to work with you in your home, or would you feel more comfortable in a residence designed for people with disabilities where there is a full staff to support you and other residents? You may even want to make a spreadsheet with predicted expenses and overall potential costs.
Purchase Burial Insurance
No one wants to think about end-of-life expenses, but it’s far better to consider how your family will manage them well before the time comes. For instance, you should consider purchasing burial insurance, which will help cover expenses after you pass away. This includes medical bills and funeral costs.
Burial insurance is quite affordable, but it is generally slightly more expensive for men. Before committing to a specific policy, take some time to think about your potential funeral arrangements and how much it would cost. In addition, decide if you want the policy to cover other bills. This will help you figure out the level of coverage you will need.
Now that many companies are hiring remote, part-time workers, people with disabilities who feel comfortable working from home have more options. Contract and freelance work can be very flexible and allow you to save more money.
It’s important for people with disabilities who receive benefits to understand that they are subject to income and investment limits. Your income must remain below the federal benefit rate to qualify for certain benefits. According to Able for All, individuals contributing to ABLE Accounts, which are savings accounts specifically designed for people with disabilities, should know that the standard annual contribution limit is $15,000, with some exceptions.
Consult With Professionals
Do you feel like you still have endless questions about how to best prepare for your financial future and pay for all your healthcare needs later in life? Are you confused about the services that your health insurance will or will not cover? That’s perfectly normal, and there are plenty of professionals who can help guide you through the process.
The sooner you can connect with a qualified financial advisor, the better! A financial advisor who has experience working with people with disabilities will be able to assist you with long-term planning. You can work together to find resources that can provide financial help and come up with a strategy to help you save more money.
If you’re a homeowner, you may also want to consult a lender about the benefits and costs of refinancing your home. By refinancing, you could take advantage of today’s historically low interest rates and lower your monthly mortgage payments.
There’s no doubt that financial planning is more complex for people with disabilities, and typical retirement planning advice might not be enough to help them prepare for their future needs. But with the right approach, people with disabilities can feel confident about covering the costs of future long-term care.