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Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
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Instructions For Completing The Chart: My Cash Flow On Disability

Your Expenses While on Disability

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Medical Expenses That Are Not Insured Or Provided Free  (such as through an emergency room)

Try to estimate the expenses that you would have to pay for  because they are not insured or provided free, that go along with your  condition if it caused you to be disabled. Ask your health care provider or  disease specific national or local non-profit organization for advice.  
         
Health Insurance Premiums

If you have  employer-provided group health insurance and go on disability, to  continue the insurance, you may have to pay up to 102% of the entire premium  for twenty-nine months when Medicare starts. To learn more, see COBRA.

Health Insurance Deductibles

Focus on how much your health plan's deductibles are. Assume  for current purposes that you will use up your deductible.

Co-payments

When on disability, the total of co-payments will increase  if you see doctors more often, or spend more time in the hospital, or take more  prescription drugs.

Prescription drug cost

Include the cost  of any drugs that are not covered by your insurance.

Your current drug  costs may give you a good idea of numbers to work with. On the other hand, if  your condition reaches the point of being disabling, your drug expenses may be  much greater. Speak with your disease specific non-profit national or local  organization.

Over-the-counter medications / Nutritional Supplements

Good nutrition is always important  See Nutrition.

Over-the-counter medications and nutritional supplements are  usually not covered by insurance.  At  the same time, you may use more of them to alleviate the symptoms of your  illness if it worsens.

Medical equipment

If you might need medical equipment not covered by  insurance, include an estimate of the cost to rent or purchase.

Medical Supplies

Ask your doctor or your doctor's administrative nurse if  there are supplies that you may need that are generally not covered by  insurance.

Home Care

Most insurance plans (including Medicare) limit the number  of visits they will cover.  You could  face large out-of-pocket expenses for home care beyond the limits of your  coverage.  You may get additional home  care if you qualify for Medicaid.

Psychological Therapy

Even if your health insurance does cover it, coverage is  usually limited both as to the amount of reimbursement per visit and the number  of covered visits.

Complementary and Alternative therapies

Most plans do not cover some or any complimentary/alternative therapies  such as acupuncture, massage therapy, and herbal remedies.

Experimental Treatments

Health insurance does not cover drugs or treatments that are  not FDA approved, and may not cover an FDA-approved drug unless it has been  approved specifically for your condition.

Eyeglasses / Contact Lenses 

If your condition could worsen your eyesight, consider  budgeting in a higher amount for these items than you currently spend. Also see Vision Insurance.

Food

While you may have more time to cook more, you might not  have the energy. Combined with the possibility of requiring special diets, this  might increase your food bill. On the other hand, free food delivered to your  door may be available in your community.

Transportation

If, due to your condition, you have to take more taxicabs or  travel to and from medical care providers more often, your total transportation  costs might increase. As an offset, your cost of commuting to work will be eliminated.

Household Expenses

If you move, your household expenses might decrease.  On the other hand, since you will probably  be spending more time at home, household expenses might increase whether you  move or not. For example, you may keep the air conditioner on all day during  the summer, or the heat on high all winter.

Personal Care

If you go through treatment that alters your personal  appearance, your personal care costs could increase.  At the same time, you might require less expensive clothing and  less frequent haircuts than you did when you were working.

Recreation

The amount you spend on recreation  could increase due to the extra free time you have, or decrease because you  won't need recreation to release the stress associated with your job.

Professional Services (Non-Medical)

It's possible that you will need more assistance from  professionals such as lawyers, claims professionals, and financial planners  while you are on disability. Try to estimate your needs.

Child care

Child care expenses could increase or decrease if you become  disabled. You might be able to care for your children yourself, or you might no  longer be able to care for them.

Debts & Obligations     

  • Credit cards and loans:  Read about Credit Life, Credit Disability Insurance, and How To Deal With A Financial Crunch to see if you will have to  continue paying off credit card balances and other loans if you become  disabled.     
  • Income Taxes: To see if you will have to pay  estimated taxes, see Estimated Taxes.      
  • Mortgage/Maintenance Fees/Rent: Consider where  you would live if you became disabled. Is it possible that you would move in  with a relative or friend and, as a result, have lower monthly rent or mortgage  payments? (See New Uses Of Assets.)

Savings & Income Protection:      

  • Emergency Fund: If you already have an emergency  fund, you might not need to save anything more toward it.  If you don't have a fund, do what you can to  put cash aside now "just in  case."  (See Emergency Fund.)         
  • Disability Income Insurance: Disability income  insurance premiums usually stop once a claim has been approved. However, if  other members of your household have disability insurance, their premiums will  continue. 

Life Insurance:

If your life insurance policy has a disability  waiver of premium, your premiums will be waived if your request for a waiver is  approved.  On the other hand, if you  have to convert a group life policy to an individual policy, your life  insurance premiums may increase. See New Uses of  Assets- Life Insurance.   Check your policies to see if they have waiver of premium for disability  clauses.  


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