Navigating Your Financial Landscape Post-Disability

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We’ve discussed some of the big disasters in life that can significantly change our financial picture — the death of a spouse and divorce. Exploring another life challenge that can significantly impact you – finances after a disability (either your own or your spouse’s). When dealing with a disability, whether your own or your spouse’s, it’s vital to understand that disabilities are often long-lasting, especially as we age. Such a situation can restrict many daily activities and necessitate thoughtful planning and adaptation.

Unlike death or divorce, which are undeniably distressing in their own ways, a disability can persist, exerting a continuous and enduring influence on your financial landscape. You’re confronted with a new reality that will require adjustment. Thankfully, there are avenues to regain control of your finances post-disability. Although the envisioned path of your life may alter, there are effective financial strategies to help you move ahead. Here’s a guide on managing finances when confronted with disability, whether it affects you or your spouse.

Table of Contents

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Facing the Challenge: Decoding Disability

To understand what facing a disability means, it’s essential to understand the history of disabilities and how they’re defined. The Americans with Disabilities Act (ADA) came into law in 1990; this civil rights law prevents discrimination against individuals with disabilities in various facets of public life, such as schools, employment, transportation, public spaces, and private establishments open to the public.

The ADA aims to guarantee equal rights and opportunities for individuals with disabilities. It offers civil rights protections similar to those based on sex, religion, national origin, age, and race.

In the context of the ADA, disability is viewed as a legal concept rather than a medical one. The legal definition differs from how it’s defined in other legislations, like those pertaining to Social Security Disability benefits. According to the ADA, an individual with a disability is someone with an impairment, be it mental or physical, that significantly restricts their key life activities. This definition encompasses individuals with a history of such impairments, even if they are not presently experiencing a disability.

It is illegal to discriminate against individuals due to their connection with a person with a disability. Notably, the ADA does not specify a list of conditions defined as disabilities under the act, allowing for some degree of interpretation.

Unlocking the Meaning: Disability Explained

The Americans with Disabilities Act Amendments Act (ADAAA) was enacted in 2008 and officially became law on January 1, 2009. This act introduced various adjustments and clarifications to redefine disability.

These changes in the ADAAA apply to the titles of the ADA, including:

  • Title I: Employment practices by private employers with 15+ employees, governments (state and local), employment agencies, labor unions, and agents of the employer and joint management-labor committees.
  • Title II: about programs and activities of state and local government entities.
  • Title III: for private entities, considered places of public accommodation.

Identifying Medical Conditions Under ADAAA: A Quick Overview

Under the ADAAA, the regulations also outline medical conditions that would readily qualify as a disability under the law. While not exhaustive, this list serves as a useful starting point for navigating the system. The conditions encompass physiological, functional, or mobility impairments; they may be fluctuating, intermittent, chronic, progressive, stable, visible, or invisible. Certain conditions entail extreme pain, while others involve less; some may not involve pain at all.

The medical conditions in the ADAAA include:

  • Hearing Impairments and Deafness
  • Vision Impairment
  • Individuals with Partially or Completely Missing Limbs
  • Mobility Limitations Requiring Wheelchair Use
  • Autism
  • Cerebral Palsy [neurological condition]
  • HIV Infection
  • Multiple Sclerosis [neurological deterioration]
  • Muscular Dystrophy [muscular disorders]
  • Major Depressive Disorder
  • Bipolar Disorder
  • Post-Traumatic Stress Disorder (PTSD)
  • Obsessive-Compulsive Disorder + Anxiety Disorders
  • Schizophrenia
  • Organic Brain Disorders

Navigating Financial Stability After Disability: Your Guide to a Solid Future

Understanding how the ADA defines disabilities and the protections it affords can assist you in moving forward. If you encounter a disability, it’s crucial to be aware of your rights and recognize that there are safeguards in place to prevent employers and others from discriminating against you based on your diagnosis.

Organizing Your Finances After Disability: Putting Your Affairs in Order

If you oversee your household finances already and you’re facing a prolonged disability, it’s important to make sure you have everything in order. Discuss your financial picture with a trusted partner, family member, or financial consultant Depending on your condition and the current state of your health, it’s better to act as quickly as possible.

Disabilities can arise abruptly from accidents, injuries, or through a gradual process like a degenerative neurological condition. It is advisable for everyone to manage their finances prudently, as accidents can happen unexpectedly. However, many individuals tend to overlook this aspect until it becomes a pressing concern.

Managing Your Finances Post Disability Diagnosis

If you’ve just received a challenging diagnosis, you’re likely dealing with a lot, especially concerning your health. While financial matters might not be your top priority, managing your finances post a disability diagnosis is crucial. Make sure you have a living will set up and have appointed someone to handle money issues should you be unable to make decisions.

Consider sharing your login and account details with a trusted individual. Inform them about the account locations, beneficiaries, and essential financial details to ensure they are well-informed.

Unlock Your Disability Benefits: Who to Call and Get in Touch With

If you have disability insurance, it’s important to reach out to your insurance carrier to confirm the availability of your benefits and establish a plan to access them when necessary. No matter the circumstances, taking proactive steps to inquire and seek clarification is crucial.

Reach out to your HR department at work. If necessary, consider reaching out to an attorney (or having one in mind). Disability protections and laws are established, so it’s important to acquaint yourself with your rights to ensure you have the appropriate safeguards in place.

Many hospitals and physicians provide access to social services. A caseworker can assist in identifying programs and resources tailored to your specific needs. For instance, certain programs could facilitate obtaining a service animal or acquiring skills like reading braille for individuals with visual impairments. Other programs may offer support for mental health services, assistive devices, and home equipment to enhance your quality of life.

Embracing Your Next Chapter: Thriving After Disability

Navigating the new normal can be challenging, but with reliable support, you can discover the optimal way to adapt. Life’s surprises may be unpredictable, yet many of us possess more adaptability than we realize.

Navigating Disability in a Relationship: Supporting Your Partner through Challenges

If your partner becomes disabled, you may need to manage finances and provide care. This responsibility can be more complex than dealing with our own disability. Handling this transition, particularly if it happens unexpectedly or if financial management is new to us, can be quite challenging.

Navigating the Tough “What If” Chat

As I’ve said many times before, many of us don’t want to think about these worst-case scenarios. Still, it’s always better to plan and consider these situations before they become a reality (when possible). I recommend that everyone familiarize themselves with their finances thoroughly, even if they’re not the household’s primary bill payer or financial caretaker. You just never know, and it’s best to have that knowledge before you need it. If you haven’t had the “what if” conversation yet, now is the time.

Managing Household Finances After Disability: Key Questions to Consider

To evaluate your readiness to manage household finances in a personal crisis such as disability, consider the following questions:

  • How at ease do you feel about managing your household expenses?
  • Is there a budget in place for the individual managing the finances?
  • Do you have information on the frequency of expenses? Are they deducted monthly, quarterly, semi-annually, or annually?
  • Are you aware of the whereabouts and PINs for the bank accounts?
  • Are you aware of the user IDs and passwords associated with your online accounts?
  • Do you know how to gain access to your partner’s email accounts?
  • Do you possess Power of Attorney?
  • Are you an experienced home healthcare provider?
  • How accommodating is your employer if you are currently employed?
  • Do you anticipate requiring a leave of absence from your work?
  • Would any decrease in income impact your overall financial situation?
  • Is this disability temporary or permanent?
  • Are you currently covered by insurance?
  • How might this impact your financial strategy in the long run?

Many of these questions ought to be tackled well before encountering a personal crisis. Accidents and illnesses can arise abruptly, sometimes catching you off guard. While it may feel awkward to engage in financial conversations, once you’ve reviewed these questions, you’ll gain peace of mind, assured that you’re both equipped for whatever the future holds.

Acting After the Fact: Where to Find Resources

If you’re acting after the fact, it’s important to get as much information as you can right away. If your spouse is able to share financial details with you, have the conversation even if it’s difficult. Do it as soon as you can, especially if the path forward is uncertain. Should your spouse be unable to assist you, contact a financial consultant as well as an attorney. They can help you learn how to access the benefits you will need moving forward.

Just like when dealing with your own disability, if your spouse is facing one, you can reach out to social services for support. A social worker or counselor can assist in identifying available programs to enhance comfort and support for both you and your spouse.

Navigating a personal crisis can be challenging, but managing your finances can bring clarity and stability. Remember, you’re not alone in this. There are professionals ready to provide the guidance you need to overcome it.

Discover the Power of Disability Insurance with Burhoe Insurance Solutions

When considering your assets, tangible items like your home, car, and retirement account likely come to mind. However, have you considered your ability to earn a living? At Burhoe Insurance Solutions, we recognize that one of your most valuable assets isn’t physical; it’s your capacity to work. For many Americans, maintaining financial responsibilities would pose a challenge if unable to work due to injury or illness.

Disability income insurance is crafted to provide substantial income replacement in case you’re unable to work due to illness or injury, often referred to as “paycheck protection.” Paired with life insurance, disability insurance safeguards your family from losing their home or assets in unforeseen circumstances.

Get Your Finances in Order: Pre or Post Disability, It’s Time to Take Control

If working on your finances is one of your goals right now (or, maybe it’s been a goal for some time), I suggest starting with the Making Cents Count Financial Organizer.

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  • Guidance to track your legal documents, tax information, and permanent records
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Once you get your budget rolling, check out my post on 6 Simple Steps to Get Financially Organized. This post also includes a helpful checklist available in my Resource Library (free to access).

Admittedly, this particular checklist has a larger-scale focus on your overall financial picture, but I genuinely feel that getting your finances organized is essential.

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