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Preparing for the Financial Impact of Injury

A broken leg can financially impact your family if you can't work anymore

An injury could happen to you at any time, without warning. And if you aren’t prepared for the financial impact, your family could suffer both emotionally and financially. Scary, right? Especially if you’re the main earner in the household. Your income will immediately take a hit, and you and your family will likely struggle. There’s no telling how long you might be unable to work either. So, it’s vital that you set a long-term plan. Don’t get complacent and think that it will never happen to you because it can happen easier than you think. If you haven’t already started thinking about it, start here by choosing the right health insurance.

Get the Right Health Insurance

Lack of earnings is one thing, but if you haven’t got good health insurance then you’ll also have to bear the financial burden of healthcare costs on top of that. Make sure that your health insurance covers you for serious injury ahead of time. Otherwise, your family will have to try to deal with sorting insurance during this tough time.

In addition to health insurance, consider getting life insurance. It’s not something that you want to think about, but there’s always the chance that the worst could happen.

If it does, this type of insurance could provide financial security for your family that helps take the strain off during a difficult period. Sites like termlifeinsurance.co help you to compare different policies and find the best one. The younger that you are when you start paying into your policy, the cheaper it will be. Waiting until you’re older therefore means that you likely will pay higher premiums.

Look into disability insurance ahead of time too. If you have an injury that makes it impossible for you to work, you are entitled to disability benefits of up to $1,100 a month, which can keep you afloat. The problem is, the process of applying for this money is very long and it can take up to a year before you start getting payments if you haven’t applied beforehand. You can deal with all of the paperwork now; register and then start claiming your payments straight away if an injury strikes.

Speak with Your Employer

When you’re trying to make preparations, you need to know what kind of sick pay you’re entitled to, as well as any discounts or packages available for health insurance. Talk with your employer and keep up to date on the number of sick days that you have built up.

This way you know exactly how long you can take off work before your income stops. You might find that you have enough to cover the time that you’re in hospital and then you don’t need to worry about the financial impact.

Separate Wants from Needs

When you put aside money as a buffer in case you can’t work because of a future injury, you need to create a budget. Then you’ll put aside exactly what’s necessary “just in case of injury” and still be able to live comfortably, whether you’re single, have a partner, or kids. Make it easier to cut down on spending by separating your wants from your needs.

If you be spending money on luxuries right now, that’s fine, but when you aren’t bringing any money in the future that’ll become a problem. Decide on the things that are absolutely necessary and budget for them only.

Final Words on Preparing for an Injury

If you don’t prepare for a sudden injury, the financial impact will be worse than if you take cautionary steps. For example, research and get the right health insurance for you. In other words, don’t sit around hoping that it won’t take place because it easily could happen to you.

4 thoughts on “Preparing for the Financial Impact of Injury”

  1. Hi Christy:
    Years ago I was hurt working underground and found myself in a position of no income, very little mobility and a great deal of pain. In part what carried me through was a small amount of savings I had set aside.
    Today we are facing a much different kind of world. Insurance, social assistance, disability etc. There is s till a need for everyone to be certain they are covered and can care for their own needs.
    Since that experience I have always made certain I have long term coverage for near anything… Great article…

    Hugs

  2. Hello dear Christy,

    it is the best to have a passive income if we are able to do that. To have shares, mutual funds, real estate .That is good, because we generates revenue and when we do not work.

    Great post

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