Step 1: Consider long-term disability coverage Underestimating the severity of financial conditions during disability is the last thing that one should do. Keeping that in mind, it is advised by the market leaders that one should go for long-term disability coverage. Such a policy usually replaces 50% or more from one's salary and combines with any social security disability benefits that one might be liable for. Employers understand the criticality hence; they either offer private long-term disability insurance as a benefit to the employees or they ask their employees to share the amount of premium. If someone is diagnosed with a chronic disease then they should immediately go for the coverage in case their employer has not done any of the aforementioned things to control the damage that is clouding over them.
Step 2: Developing a budget and adhering to it One should do whatever they can to save money to fight out the troubled times. This involves not just establishing a budget but also adhering to it. They should prioritize the expenses, spend wisely, make less use of credit cards as it attracts more interest and take more tax-saving measures. It would be in one's best interest to not use retirement income as it triggers tax penalties. One should work hard as much as they can when they are capable of doing it so that they are protected against financial problems caused due to disability.
Step 3: Cutting unnecessary costs Doing away with all that is unnecessary and is not absolutely essential for the survival of an individual and their family is the next step. Another thing could be finding the resources or their substitute that are available nationally or locally. Furthermore, in case of disability, one can also look forward to NGOs and condition-specific groups to help them out. However, that is quite extreme and the NGOs and groups will need to enter into the scene when one has not taken the above two steps and are completely helpless.
Step 4: Applying for any government benefits The benefits of the long-term disability coverage starts coming in three to six months after the hardships begin. However, this varies from policy to policy. And sometime the amount might not be enough. So, one should also go for the benefits provided by the Government. The Government also has a few policies with very nominal or NIL premium amount to help the disable. This policy gives extra advantage. The amount that is received from both private and Government policies should be used wisely for a 'financially' tension-free life after disability.
Step 5: Have a health policy in place It gets difficult for someone with disability to find good yet affordable health care and let's face it the bigger the disability, the higher will be the expenses. So having a health insurance in place is quite essential so that the hospitalization expenses are taken care of. This way the treatment can begin on time and will not stop and one might just be able to avoid a life changing episode. Post that, if things don't work out for the better, the long-term disability coverage can come to the rescue. Also, it is only after a while that an insurance policy starts covering pre-existing diseases.
So, one should think about this quickly. Do take these measures to secure yourself and your family from the stress that financial crisis brings with it. The general notion is -the earlier, the better. Until an individual comes of age, the guardian should take care of insurance and once they are capable, they need to shoulder the responsibility. Always keep this in mind - the more the delay, the more the premium amount.
By Naval Goel, Founder and CEO, PolicyX.com
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