Financial Planning to Protect Individuals With Disabilities and Their Families

Having the right insurance coverage is one way we can all protect our financial assets. With insurance, you’re largely protecting yourself against the unknown. However, for individuals living with disabilities, smart financial planning also includes preparing for the long-term costs you know you will face later in life.

 

Protecting Your Family

Adults with disabilities are a diverse group who can be any age, with any level and type of abilities. You may still be able to work with a disability, or you may have disability income from a past job. Whatever your situation is, it’s likely that your family would face financial hardship if you were to pass away unexpectedly.

 

This is why individuals with disabilities can benefit from purchasing life insurance, which can do everything from cover your lost income to help surviving family members cover funeral costs and outstanding medical bills. The good news is that buying life insurance doesn’t have to be the daunting task many people fear. You can even shop for coverage without leaving home, and if you aren’t sure how much coverage you need, online calculators can help you figure it all out.

 

Paying for Care

Along with protecting your loved ones by purchasing life insurance, another key piece to protecting yourself and your family is planning for how to cover medical or nursing care you may need later in life. Anyone who has a disability, regardless of age, should explore your options now so you can make the best plan for your situation.

 

• Medicare: You may know of Medicare as the federal health insurance program for older adults, but some people under age 65 who have a disability may also qualify for Medicare. One of the first things you should do is determine your eligibility and speak to a provider to help walk you through the process of signing up for Medicare or help you find Medicare Advantage plans in your area.

 

Social Security Disability Insurance (SSDI) is a federal program that provides financial support for individuals who cannot work due to disability but have worked in the past. Some people are eligible for Medicare when they have received SSDI benefits for at least two years. U.S. News explains how taking advantage of this benefit is a smart strategy as part of your overall special needs financial plan.

 

Keep in mind that Medicare is an excellent resource for regular medical needs, like seeing your physician, as well as hospital stays and limited time in a skilled nursing facility, but traditional Medicare doesn’t cover long-term care. However, some Medicare Advantage plans may start providing long-term care coverage.

 

• Medicaid: If you receive Social Security Income (SSI), which is a federal program that helps provide financial resources for certain disabled individuals who have little to no income, you should also qualify for Medicaid. Both SSI and Medicaid have qualification restrictions based on income limits, which vary by state.

 

Unlike Medicare, Investopedia explains that Medicaid does cover long term care, including both custodial and nursing home care. One important thing to be aware of is that, even though Medicaid covers long term care, in certain situations you may not remain eligible for SSI benefits if you move to a nursing home.

 

• Private Insurance: If you are not eligible for Medicare or Medicaid, or you’re in the two-year waiting period for Medicare, you can still get private health insurance to cover basic medical needs. You may be able to get coverage through the Health Insurance Marketplace or by contacting a local agent. However, you should also look into ways to cover long-term care costs. Besides using savings, some private options include long-term care insurance, reverse mortgages, and certain life insurance policies.

 

Part of planning for the future means knowing you can access quality medical and custodial care when you need it. From preparing for the unexpected to covering the medical costs you know you will face, anyone with a disability needs to consider these possibilities. You will feel better knowing that your health and your family will be protected no matter what.

 

Image by Steve Buissinne from Pixabay