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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