Individuals with Disabilities: Five Tips for Crafting Your Financial Plan

At Disability Insurance Law Group, our nationwide claims attorneys understand that living with a disability often requires more careful and strategic financial planning to ensure long-term stability and security. A robust financial plan is crucial when managing additional healthcare costs, navigating employment challenges, or preparing for an uncertain future.

Here, we discuss five essential tips for crafting a financial plan that meets your unique needs as a person with disabilities.

Understand Your Disability Benefits

If you do not have a private or employer-provided disability insurance policy, many individuals with disabilities may be eligible for government benefits such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). Understanding the eligibility requirements and how much you can receive is a critical first step in your financial plan. These benefits can be a primary source of income, but there are often restrictions on how much you can earn or save while receiving them. You’ll also want to understand Medicaid or Medicare eligibility, as these programs often provide essential healthcare coverage.

Tip: Work with a financial advisor familiar with disability benefits to maximize your financial resources without jeopardizing your eligibility for critical services.

Build a Healthcare Savings Strategy

Medical expenses can be a significant part of your financial burden, so planning for routine and unexpected healthcare costs is essential. If eligible, consider opening a Health Savings Account (HSA) to set aside pre-tax dollars for qualified medical expenses. For individuals with disabilities, the Achieving a Better Life Experience (ABLE) account is another helpful tool. ABLE accounts allow you to save money for disability-related expenses without affecting your eligibility for SSI or Medicaid.

Tip: Regularly contribute to an HSA or ABLE account to create a dedicated fund for healthcare needs, ensuring you’re prepared for current and future expenses.

Focus on Income Protection and Insurance

Disability can make working full-time or earning a consistent income difficult, making income protection through insurance a critical part of your financial plan. If you are employed, ensure adequate disability insurance to replace lost income in case of a long-term illness or injury. If you’re self-employed or working part-time, consider securing private disability insurance. Life insurance is also essential, mainly if your dependents rely on your income.

Tip: Ensure that your disability insurance policy aligns with your needs and income level, and review coverage options like own-occupation policies for added protection.

Establish a Special Needs Trust (SNT)

If you receive government benefits such as SSI or Medicaid, saving large sums of money or receiving an inheritance could jeopardize your eligibility for these programs. A Special Needs Trust (SNT) is a legal tool that allows you to receive financial gifts, inheritances, or other funds without losing access to public benefits. The trust can pay for supplemental needs like housing, education, and personal care services, ensuring that your quality of life is maintained.

Tip: Work with an estate planning attorney to set up a Special Needs Trust that meets the requirements of your state and federal laws, ensuring that your savings and benefits are preserved.

Prioritize Long-Term Financial Security

Planning for your long-term financial security is critical for individuals with disabilities. Consider working with a financial planner specializing in disability planning to create a comprehensive plan that includes saving for retirement, managing investments, and setting aside funds for future medical or personal care needs. If you’re concerned about your ability to work in the long run, ensure your financial plan includes contingencies for income loss or increased care expenses.

Tip: Develop a diversified investment strategy that balances short-term needs with long-term growth, and regularly review your plan to ensure it evolves with your circumstances.

Crafting a financial plan for an individual with disabilities requires careful consideration of your unique financial needs and long-term goals. To secure your financial future, work with professionals who understand the complexities of disability planning.

Contact Our Disability Insurance Claims Attorney Today

If you have disability insurance, either as a private policy or employer-provided coverage, and are having difficulty accessing your benefits, call (954)-989-9000 or contact us online to schedule a free and confidential case assessment. Our nationwide disability insurance claims attorney will use our over 50 years of combined experience to help you.

Related Links:

• Disability Insurance Tips for Financial Advisors and Planners
• Individuals with Disabilities: Five Tips for Crafting Your Financial Plan
• Residual Disability Benefits in Private Disability Policies: What to Know About It
• Top Ten Crucial Considerations for Doctors When Purchasing Individual Disability Insurance