Financial Planning for Serious Illness: The Basics
Serious illness can have a significant impact on your financial well-being. It's important to be prepared for the financial implications of a serious illness and to have a plan in place to manage the costs and protect your financial security.
Here are the basics of financial planning for serious illness:
Understand your insurance coverage: Review your health insurance policy to understand what is covered and what is not. Consider purchasing additional coverage, such as long-term care insurance or critical illness insurance, if you feel that your current coverage is insufficient.
Review your financial resources: Take stock of your financial resources and determine what you have available to pay for medical expenses. This may include savings, investments, and any other assets that you can tap into if needed.
Create a budget: Develop a budget to manage your expenses and income during your treatment and recovery. This may involve cutting back on non-essential expenses and finding ways to increase your income if possible.
Consider government assistance: If you are unable to work due to a serious illness, you may be eligible for government assistance, such as disability benefits or Medicaid. Research the assistance programs that are available to you and determine whether you qualify.
Communicate with your employer: If you are unable to work due to a serious illness, it's important to communicate with your employer about your situation. Many employers offer leave policies for employees who are seriously ill, and you may be able to negotiate a reduced schedule or other accommodations to help manage your illness.
By understanding your insurance coverage, reviewing your financial resources, creating a budget, considering government assistance, and communicating with your employer, you can take steps to manage the financial impact of a serious illness and protect your financial security. It's also a good idea to work with a financial planner or other financial professional