Disability Archives - The Free Financial Advisor

Close up of a young woman in a wheelchair while walking in a park on a sunny day. Recovery and healthcare concepts.

Image Source: 123rf.com

Caring for a disabled family member is an act of love, but it can also bring significant financial challenges. From medical bills to adaptive equipment and lost income, the costs can quickly add up, leaving families feeling overwhelmed. The good news? There are a variety of resources available to help ease the financial burden. Whether you’re new to caregiving or have been supporting a loved one for years, knowing where to turn for financial help can make a world of difference. In this article, we’ll walk you through ten essential resources for financial help if you’re taking care of a disabled family member. Let’s explore how you can access support, maximize benefits, and find peace of mind.

1. Social Security Disability Insurance (SSDI)

If your family member has a work history and a qualifying disability, Social Security Disability Insurance (SSDI) can provide monthly income support. SSDI is a federal program designed to help those who are unable to work due to a severe disability. The application process can be lengthy, but the benefits are substantial, including potential access to Medicare after two years of eligibility.

2. Supplemental Security Income (SSI)

Supplemental Security Income (SSI) offers monthly payments for those with limited income and resources to help cover basic needs like food, clothing, and shelter. Unlike SSDI, SSI is based on financial need rather than work history. Children and adults with disabilities may qualify, and in many states, SSI recipients are automatically eligible for Medicaid. Learn more about SSI and how to apply on the SSA’s SSI page.

3. Medicaid

Medicaid is a state and federally funded program that provides health coverage for people with low income, including many individuals with disabilities. Medicaid can cover doctor visits, hospital stays, long-term care, and even some home health services. Each state has its own rules, so it’s important to check your state’s Medicaid website for specific eligibility and application information. Medicaid is often a lifeline for families, helping offset the high medical care and support services costs.

4. State Disability Assistance Programs

Many states offer their own disability assistance programs, which can provide cash benefits, medical coverage, or both. These programs often supplement federal benefits and may have different eligibility criteria. For example, some states have programs specifically for children with disabilities or for those who don’t qualify for federal aid. To find out what’s available in your area, contact your state’s Department of Health and Human Services or visit their website.

5. Family and Medical Leave Act (FMLA)

If you’re working and need to take time off to care for a disabled family member, the Family and Medical Leave Act (FMLA) may protect your job. FMLA allows eligible employees to take up to 12 weeks of unpaid, job-protected leave per year for family caregiving. While it doesn’t provide direct financial help, it ensures you won’t lose your job while attending to your loved one’s needs.

6. Tax Credits and Deductions

The IRS offers several tax breaks for families caring for a disabled member. You may be able to claim the Child and Dependent Care Credit, the Credit for the Elderly or Disabled, or deduct certain medical expenses. These tax benefits can help offset the costs of care, so be sure to keep detailed records of your expenses throughout the year. Consult a tax professional or visit the IRS website to see which credits and deductions you might qualify for.

7. Nonprofit and Charitable Organizations

Many nonprofit organizations offer financial help, grants, or direct services to families caring for someone with a disability. Groups like Easterseals, United Cerebral Palsy, and the National Organization for Rare Disorders provide everything from emergency financial assistance to respite care and equipment grants. Local charities and religious organizations may also have programs to help with utility bills, transportation, or home modifications.

8. Special Needs Trusts

A special needs trust is a legal tool that allows you to set aside money for your disabled family member without affecting their eligibility for government benefits like SSI or Medicaid. These trusts can pay for things that public benefits don’t cover, such as education, recreation, or personal care items. Setting up a special needs trust can be complex, so it’s wise to consult with an attorney who specializes in disability law.

9. State Vocational Rehabilitation Services

If your disabled family member is interested in working or gaining new skills, state vocational rehabilitation (VR) agencies can help. VR services offer job training, career counseling, and sometimes financial assistance for education or adaptive equipment. These programs are designed to help people with disabilities achieve greater independence and financial stability.

10. Local Area Agencies on Aging and Disability Resource Centers

Area Agencies on Aging (AAA) and Disability Resource Centers (DRC) are community-based organizations that connect families with local resources, including financial help, respite care, and support groups. These agencies often know about state and local programs that aren’t widely advertised.

Empowering Your Caregiving Journey

Taking care of a disabled family member is a journey filled with both challenges and rewards. By tapping into these ten resources for financial help, you can reduce stress, protect your family’s finances, and focus more on what matters most—caring for your loved one. Remember, you’re not alone, and a network of support is waiting to help you navigate the financial side of caregiving.

What resources have helped you the most while caring for a disabled family member? Share your experiences in the comments below!

5 Ways to Prepare Your Finances for Divorce Proceedings

Travis Campbell

Travis Campbell is a digital marketer/developer with over 10 years of experience and a writer for over 6 years. He holds a degree in E-commerce and likes to share life advice he’s learned over the years. Travis loves spending time on the golf course or at the gym when he’s not working.

Hey, it’s always fun to say stuff off the cuff with friends, but when you have readers who take your words seriously and act on them….it’s probably best to do some research first. Our Boner of the Week! Is the most outrageous thing I’ve read on the internet in the last seven days.

…and we’re back to personal finance blogs!

A well-known blogger this week described disability insurance as “optional” in an article about types of insurance you should pursue. Really? Maybe it’s “optional” in the same way other insurances may be bypassed if you have other forms of coverage, but I don’t think it’s “optional” like the guacamole on my nachos at Buffalo Wild Wings. Don’t get me wrong, I’m not really a guacamole or disability insurance lover, but I can safely pass on the former. The latter….well, let us see for ourselves…..

When you’re deciding which insurances you need, disability coverage should be at the top of your list.

Here are the reasons why:

– If you can’t work, you can’t feed yourself without income. Unless you’re hoping for that awesome government check every month, disability insurance will protect your family and your things. Know why? You’ll still have income.

– Don’t think it’s going to happen to you? Think again. There’s some great news when it comes to auto accidents. Roads are becoming safer. There were just over 33,000 highway accident fatalities in 2009, as compared to over 43,000 in 2005. Instead of dying, people are just maimed.

Gratuitous Kind-of-Funny Picture to Break Up the Post!

Need Statistics? How about these eye-popping numbers on disability:

o As of 2009, persons in the U.S. have a 12 percent chance of suffering a disability. (Cornell University)

o Just over 1 in 4 persons who are 20 years old today will suffer a disability. (Council for Disability Awareness)

o Over 12 percent of the population is currently disabled. (CDA)

o 61 percent of wage earners personally know someone who has been disabled for three months or longer during their working career. (CDA)

Insurance is about odds. I dislike insurance policies as much as the next guy. That’s why my goal is to only buy insurances that I’ll probably need and avoid those that I won’t. Because I’m determining the chance of risk, it makes sense for me to check the probability of the occurance of need.

So, let’s examine the chances of a disability vs. other types of insurance listed in the piece:

Disability: 1:12 (Cornell University, listed above)

Auto: 5.67:100 (collision claims, according to Insurance Information Institute)

Home: 6:100 (Insurance Information Institute)

In fact, the author of the piece acknowledges the high rate of disability but still lists it as optional insurance. I can’t understand this logic.

Life insurance isn’t considered optional in her piece…in fact it’s listed as the third most important type of coverage (behind auto and health). But to express it in the most crude terms possible….isn’t your family better off if you’re dead than if you’re sucking down food and taking up space? They’ll have to cart you to the doctor and help you with basic activities. You’ll use electricity as you watch television or listen to the radio instead of work. It’s not fun for you and expensive for your family.

Not working? Long Term Care coverage isn’t even mentioned in the blogger’s piece and represents a huge hole in the financial plans of retirees who have enough money to protect but not enough to withstand the huge costs associated with custodial care on a daily basis. I won’t go into these facts here, because it’s slightly off-topic.

I’m tired of:

– “financial professionals” describing insurances and listing disability policies as the stepchild of the industry.

– consumers saying “I have disability through work, so I’m all set.” Workplace disability coverage often is capped at a staggeringly low amount of coverage. Why? Because a disability is expensive and insurance to cover a disability is expensive. Do your homework before flippantly deciding that “my insurance through work is enough.”

Still, maybe the blogger is off the hook. Here’s when you don’t need disability coverage:

1) if you have enough money to cover a disability, you can self-insure.

2) if your income stream comes from places that would be unaffected by your disability, and your health care coverage will tackle additional costs.

I’d like to believe that when she wrote “optional” next to disability insurance she meant to write “optional” next to every insurance coverage. Otherwise, I’m sure she meant that you should explore disability insurance as thoroughly as you would health, auto, home and life insurance.

Dearest minions,

When some professional writer, television talking head, or paid advisor tells you to look past an insurance type, always reach for statistics. Although I’m as bad at math as the next personal financial blogger, the numbers will usually find a way to lead me to the truth. The truth in this case: find adequate disability coverage.

Now it’s your turn. What insurances aren’t “optional” in your life? Which do you skip and take the risk?

10 Resources For Financial Help If You’re Taking Care Of A Disabled Family Member