Being disabled or facing the possibility of disability presents a unique set of challenges, especially for those in the Childfree community. Without the support of family or children, it’s crucial to plan ahead for both your care and financial needs. Here’s how to manage your finances if you end up unable to work in the traditional sense.
Disability Insurance
Ideally, you have a disability insurance policy in place, which can provide you with a financial safety net. However, the type of policy you have makes a big difference in how it works.
If your employer pays for it, the money you receive from the insurance company will likely be taxable. If you pay for it yourself with after-tax dollars, the benefit you receive is typically tax-free. For the most financial benefit, consider paying for your own disability insurance.
Additionally, make sure to check how long your insurance will cover you. Some policies only pay for a set number of years, while others cover you until retirement age (usually 65 or 70). Knowing the details will help you plan for the future.
Social Security Disability Insurance (SSDI)
If you don’t have disability insurance, you may qualify for Social Security Disability Insurance (SSDI). Many people think Social Security is only for retirement, but it’s also available for people who are disabled and can no longer work.
Getting approved for SSDI can be a lengthy and challenging process. You must show that you are unable to work enough to support yourself. If you have a terminal illness, approval may be faster. However, if you don’t, be prepared for a long wait. On the bright side, once you’re approved, you’ll receive back pay to the date you applied.
However, SSDI can be complicated. If you’re young or haven’t worked for many years, your eligibility and monthly payment might be limited. Also, while you can work alongside receiving SSDI, your income will be capped — if you earn too much, you’ll lose your eligibility.
One upside of SSDI: you won’t have to continue making student loan payments if you have them.
Other Programs and Support
There are often other programs that you may qualify for. This is where a social worker or geriatric care manager becomes invaluable. These professionals can help you navigate and apply for various disability programs, ensuring you get the support you need.
Additionally, a CERTIFIED FINANCIAL PLANNER™ (CFP®) can be a critical resource for planning your finances and managing your money during this time. They’ll help you structure your financial plan, ensuring you’re set up for long-term stability.
Reach Out for Help
Caring for yourself when facing disability is complex, and you don’t have to do it alone. Whether you need help understanding insurance options, applying for SSDI, or managing your finances, professionals like social workers, care managers, and CFP®s can make the process smoother.
It’s important to plan now, not just for your immediate needs, but for the long-term future. If you need help, don’t hesitate to reach out — you’ve got a community of professionals who are ready to help you navigate the challenges ahead.