Chronic illness or disability is something that everyone likes to think will never happen to them. Unfortunately, chronic illness and disability are very real possibilities and it's important — for your sake and your family's — to plan for them as soon as possible. Below are three tips for financially planning for chronic illness or disability.
Start Building an Emergency Fund
Chronic illness can strike anyone — at any age — so whether you're 19 or 59, you should have an emergency fund that can financially support you for at least 6 months.
An emergency fund can help to keep you afloat, even when you're faced with a medical emergency that puts you out of work. An emergency fund should ideally cover at least 6 months of living expenses, but it can also be used in the event that you need to fly across country to see a specialist or you need to have a procedure done that's not covered by your health insurance. Starting an emergency fund can be as simple as foregoing your daily cup o' coffee from the coffee shop by work, and there are a number of financial systems available that can get your emergency fund where you need it to be in just a matter of months.
Know What Your Health Insurance Policy Covers
If you're ever diagnosed with a chronic illness, it's best to know from the get-go what your health insurance policy covers and which hospitals, doctors, and medical clinics are in your network.
When you're dealing with a health crisis, the worst thing you can do is to delay treatment. To avoid treatment delays, it's always good to have a general idea of what your current health policy covers and where you can go to receive the best treatment with the least amount of financial repercussions. While it may not always be possible to choose an in-network doctor or hospital, it's good to know which ones are in-network in case you're able to choose.
Get a Life Insurance Policy While You're Healthy
If you become injured or are diagnosed with a chronic illness, it can be near impossible to find a life insurance policy that will provide for your loved ones. That is why it's so important to have a life insurance policy in place when you're at your healthiest.
If you ever become ill or disabled, you don't need the added stress of worrying about your family and their needs. And, while you never like to think about your own mortality, having that life insurance policy in place can lift a huge burden off of your shoulders since you know that your loved ones will be cared for after your passing.
To learn more about how you can financially plan for the unexpected, consult with a financial advisor like Family Financial Partners.