7 Financial Priorities To Consider For Dealing With a Loss of Health by Perminder Chohan

TAKE CHARGE OF YOUR HEALTH

It can’t be repeated often enough: prevention is the key to good health. Staying healthy not only protects you from certain ailments, it can also maintain your insurability and access to affordable insurance.

BUILD AN EMERGENCY FUND

This will be your first line of financial defence if you develop a health problem. Identify sources of income in case of disability (government programs, group insurance, etc.). Then, plan to save the equivalent of several months’ salary to help you compensate for lost income or hold on until benefits are paid.

CONSIDER DISABILITY INSURANCE

Disability insurance is a kind of salary insurance; if you can’t work because of a disability, it pays you a monthly benefit that replaces part of your salary. Such coverage could be particularly useful if you are self-employed or in business and don’t have group insurance.

CONSIDER CRITICAL ILLNESS INSURANCE

Critical illness insurance pays a predetermined benefit if you are diagnosed with one of the illnesses listed in the contract (usually about 20, including cancer, multiple sclerosis and Alzheimer’s disease). The money may be used to compensate for lost income, pay for health care, or for any other purpose at the discretion of the insured person.

PREPARE A LIVING WILL IN CASE OF INCAPACITY

If an accident or illness were to leave you temporarily or permanently incapacitated, it would be important to have a trusted person designated by you to make financial decisions in your best interest. This is the purpose of a living will.

PUT YOUR THINGS IN ORDER

An organized file system that contains your important documents and personal information can make things easier for your loved ones if you become unable to manage your own affairs. It might also be wise to draw up a will now in case you are unable to do so later.

ARTICULATE YOUR STRATEGY

  • In official papers
  • In an annual budget
  • In a long-term plan